an overview of the cuma programme - teagasc€¦ · cuma are service co-operatives set up by and...
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Programme
An overview of
the CUMA
Farm
Machinery
Co-operatives
speaker : Stéphane DIARD
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Programme French Cuma :
an overview
➔ How it started
➔ How it has grown
➔ How it works : economical
and organisational aspects
➔ Why are farmers sharing
their equipment in Cuma?
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How it started / a bit of history
Before 1939 : informal mutual aid systems already existed After Second World War : issue of the reconstruction/modernization of French agriculture Majority of small family farms ⇒ promotion of shared mechanization by agricultural syndicates
Economical incentives : credit access, grants
Appropriate legal framework
Groups’s support through an advisory network
3 pillars
of the Cuma
development
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My CUMA
40 members, spread over 9 districts / around 4500 ha cultivated
50 agricultural machinery, from air seeder to striptill
1980 around 20 members - all dairy farmers
1 silage harvester + 1 tractor
Today
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CUMA are service co-operatives set up by and for farmers
COLLECTIVE INVESTMENT AND JOINT USE
of machinery, building, workers
for tasks directly linked to production cycles
LITTLE AUTONOMOUS GROUPS
to ease or improve production conditions
and increase the farm’s productivity
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12 260 Cuma in France
Chiffres 2015 - Source FNCuma
25 members in average
per Cuma
212 000 Cuma members
1 French farmer out of 2 = member of a CUMA
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Chiffres clés Cuma
The Cuma federative network
65 local federations
cooperative life, machinery advice, support to new projects
(employment,...), payroll, ...
10 regional federations 1 national federation
advocacy/national and regional authorities, trainings, supports
to local federations, networking, events, research-development
activities, technical and economical references, ...
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Chiffres 2015 - Source FNCuma
the fleet of
machinery in
250 000 machinery in Cuma
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CUMA basis : co-operative statutes
VOLUNTARY MEMBERSHIP
EQUITY
DEMOCRATIC MANAGEMENT
SOCIAL CAPITAL
COMMITMENT
CUMA associated members
= decision-makers + users
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Social capital
recommendation : 20% of the investment
€6 000
Grants (possibly) € 0
Total social capital + grants €6 000
Balance 30 000 € - 24000 €
= Loan amount €24 000
Example : let’s invest in an air seeder
4 Cuma members need an air seeder. It costs 30 000 €. Let’s invest together!
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Members Area
concerned
social capital
share for each
member
Mr. A 80 ha 3200 €
Mr. B 20 ha 800 €
Ms. C 10 ha 400 €
Mr. D 40 ha 1600 €
all members 150 ha 6000 €
Each member commit in using the machinery on a given area.
Example : let’s invest in an air seeder
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Calculation
basis
Cost/year (estimation)
Depreciation 8 years 3750 €
Financial costs 7%, 7-year loan 1000 €
General costs (insurance,
management, subscription)
180 €
Flexible costs (maintenance) 2.7 €/ha
(estimation)
405 € (for 150 ha)
TOTAL 5335 €
Calculation of the shared machinery cost price
Members Area estimated
cost invoiced
per year
Mr. A 80 ha 2848 €
Mr. B 20 ha 712 €
Ms. C 10 ha 356 €
Mr. D 40 ha 1424 €
The estimated cost of the air seeder is 35.6 €/ha
For 250 ha, it would have been 22.4 €/ha
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Specific rules and regulations set up by the members
Which invoicing rules in our Cuma?
We have chosen : a two-
steps invoice (June + balance at the end
of the year)
How do we share responsibilities for the maintenance of our
machinery?
How do we define a common schedule ?
How do we fix the the period of engagement?
We have chosen : the depreciation period
…
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The search of the better compromise COST/ ORGANIsATION
Collective organisation
• Regular meetings / clear schedule!
• Criteria defined by the group : one member at a time, by geographical
areas / priority to the farmer who was the last the previous year/ plots with an
earlier maturity,...
Choice of the machinery
EXAMPLE : estimation of the available days for sowing : 6 days area to sow : 200 ha
= 34 ha/day to sow ⇒ we chose a 4 meters wide seeder
undersized equipment = cheaper but “tense” collective organisation
oversized equipment = availability OK but costly
not one unique recipe:
risk sharing methods, choices of the group
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Why are we in Cuma?
↘ mechanization costs : 5 to 15% saving Access to up-to-date machinery
Risk sharing (an asset for new projects)
Quality of life :
↪ a better work organisation
↪ social interaction Easier setup of young farmers : advices from the group + cost cutting
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Fédération nationale des Cuma
43 Rue Sedaine CS91115
75538 PARIS Cedex 11
www.cuma.fr/france
Thank you!
www.cuma.fr