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The Value of the Contractor in Agriculture
Page 83
Page 84
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Wide Range of Tackle Necessary to Deal with a Big Variety of Tasks. Higher Rates Necessary to Ensure Economic Working
Ti-IE operator of farm tractors on service contracts is not—as some people think—experimenting in a new line of business. He is carrying on, for the most part, the function filled for many years by the steam ploughmen. Now that steam tackle is falling out of favour, what is more natural than that old and new firms should install moderntackle and offer an even wider range Of services than before.
Behind the system of employing a contractor to undertake heavy ploughing and deep cultivating is the sound theory that the exceptionally powerful machines required for such work are too expensive for economic ownership by individual farmers: This fact is the more easily realized when it is remembered that such operations are not performed over the whole area of the farm in any one year.
The Contractor's Sphere.
Perhaps not more than a quarter or a fifth or sixth_ is deep-ploughed each year. Therefore it has been recognized generally that such work is best left to the contractor and sufficiently powerful tractors or horse teams to cope with normal work are the economic limit for farm ownership.
The slump in agriculture, from which we are now recovering, has left farmers short of capital and many do not care to burden themselves now with the outlay necessary even for tackle for the normal work of the farm. Consequently, there. is a general tendency to put more and more of the normal and lighter jobs out to contract.
Not only does the contractor's service offer a reduction in capital outlay on the part of the farmer, but it also relieves him of many worries and expenses which are taken over by the contractor. The direct supervision of labour on the job falls to the contractor.
The maintenance of the equipment is the contractor's responsibility. If there be a breakdown it must not interfere with the execution of the work. When the machines wear out, he must replace them. For all these facilities the farmer pays a fixed price for the job per acre, so that he can calculate his costs in advance and know his position at any time.
With the introduction of many new types of power-farming machine, the farmer is asking for an increase in the range of tasks which he can have performed by contract, Mowing, binding and even combine harvesting have been added to ploughing, subsoiling cultiva ting, harrowing rolling and drilling,, so that .in some, districts the farmer is securing the services of a full range of equipment without a penny of his own capital being invested.
Much of this aspect of the contract business is, :Of course, a new development, and the fixing Of fair rates still leaves a good deal to be desired. In any district the services of a good con7 tractor can be of inestimable value to the farming community and it may be said that a great deal of land would not be farmed at all unless contractors were available.
Ridiculously Low Rates.
The chief difficulties come from small operators, who drive their own tractors and often become slaves of the farmer§ for whom they work. With little or no idea of business principles, they are content to draw enough earnings to live upon in the style of a farm labourer and allocate nothing for depreciation and repairs.
After allowing their rates to be knocked down to A ridiculously low level, they end up with worn-out tractors and no reserves with which to replace them. They have done no good for themselves and but little for the farmers, who are ultimately deprived altogether of the service.
Price-cutting "'wars " often develop in the same way as they have done in road transport and there are, to-day, 1341 some areas where these small contractors are working at rates 50 per cent. below cost.
Actually, contract work is not suitable for the small operator, by reason of the wide range of tackle required and the variation of returns at different seasons. The job must be efficiently carried out to attain the successful results which are possible.
There must be enough work available to obtain the maximum service hours from each machine and it must be possible to shift the appliances quickly from place to place. An efficient maintenance staff and plant to prevent breakdowns, so far as possible, are as important as the ability to deal with them quickly and avoid delay when they do occur.
To meet sudden rushes of work, some machines must be kept in reserve. The whole system or booking orders and accounting needs to be handled in a business-like way to avoid.disappointments and loss of earnings.
The farmers who wish to mould their policy on contractors' services should realize that they can secure them at economic prices ; but, for their own sakes, they must not expect everything at cut rates, which are uneconomic to the contractor.