using a custom harvester - factors to consider january 30, 2005 brian holmes extension agricultural...
TRANSCRIPT
Using a Custom Harvester - Using a Custom Harvester - Factors to ConsiderFactors to Consider
January 30, 2005January 30, 2005
Brian HolmesBrian HolmesExtension Agricultural EngineerExtension Agricultural Engineer
Biological Systems Engineering DepartmentBiological Systems Engineering DepartmentUniversity of Wisconsin - MadisonUniversity of Wisconsin - Madison
Why do dairymen hire Custom Operators ?Why do dairymen hire Custom Operators ?
Milk production suffers during harvest time.
Crops suffer due to lack of time to manage them.
Current equipment line is not up-to-date.
Want to spend more time with cows.
Want to spend more time with family.
Willing to give up control of cropping.
Compliments of Chuck Grimes
Benefits of a Custom Operator
Rapid Harvest-Fill storage quickly-Might beat the weather-Keeps hay at same stage of maturity-More uniformity of forage quality-More uniformity of forage moisture
(continued)
Benefits of a Custom Operator
Reduced Capital Investment, Borrowing,Leasing
Lower Cost of ProductionNo Hired LaborCustom Operator’s Labor Is Well
Trained and Works HardLess Oversight and SchedulingVariety of Services AvailableHigher Milk Production per Ton or Acre
(continued)
Limitations of a Custom Operator
Some Existing Equipment Will Not Be Used- ”If it doesn’t fit you must acquit”- Cutting in 4 days and chopping
in 1 day doesn’t work
Rapid Harvest- Need to be prepared to fill/pack storage- Need to be prepared to cover storage
(continued)
Limitations of a Custom Operator
Producer Must Give up Some Control- Scheduling start date- Plans for harvest decided early - Producer’s equipment and labor
comes under the control of custom operator
- Independence can be a handicap to the system
(continued)
Limitations of a Custom Operator
Communications Must Increase- Specify feeding needs- Specify feed preservation - Status of crop maturity - Services required
Quality Control Determination- Moisture content- Particle size determination- Corn processing- Inventory identification- etc.
(continued)
Degree of Trust vs Time TogetherDistrust
Distrust
Full Trust
Communications not establishedUnreliable/unpredictable performanceParties behave more independentlyIssues can be external forces or because of internal behaviorsNo loyalty established
Good Communications Consistent performanceTeamwork to resolve issueMost Issues caused by
external forcesLoyalty to each otherMutual benefits
Time
Custom Operator
Customer
Building Confidence
Producer Custom Operator
Letter of credit References
Personal References Insurance certificate
Pay on time Perform service adequatelyand in timely manner
Communicate needs How break downs/employee no shows are handled
Deliver on promises Obtain help from competitors - don’t jump the gun or lease equipment to get the
job done
(continued)(continued)
Building ConfidenceProducer Custom Operator
Be flexible Be flexible
Have labor and Equipment Reliability equipment ready to go - New Equipment
- Parts Inventory/accessCommit to agreement - Preventive maintenance early (winter)Seriously consider advice Give good advice
Plant different maturity corn to open harvest window
Avoid surprises – Avoid surprises – communicate early communicate early
(continued)
Contract = meeting of the minds = mutual agreement
1. Offer
2. Acceptance
3. Consideration
Written vs Verbal - Written is more defensible in court - “People remember things differently”
Protects all parties
Written Contract
Identifies the partiesWhat each party will doWhat each party will not doService cost ratesPenaltiesConflict resolutionWarrantiesLimitations on damagesHave attorney readSigned by all parties
Communications
Producer Custom Operator
Talk Not Listening Talk Not Listening Talk Not Listening . . . . . .
Communications
Producer Custom Operator
Not Listening Talk Not Listening Talk Not Listening Talk . . . . . .
Communications
Producer Custom Operator
Listening Talk Talk Listening Read Written Materials Written Materials Read
Its all about Its all about TEAM WORK!TEAM WORK!
Compliments of Chuck Grimes
Feed Production Team
DairymanCrop ProducerHarvesterStorage FillerAgronomistNutritionistFeederLenderOthers?
Goal Produce high quality and high quantity feed with minimal losses in quantity and quality at a reasonable cost
Objectives: Select correct varieties Plant on time Fertilize properly Harvest at correct time Avoid harvest losses Store properly – avoid storage losses Feed properly
- Proper feed-out- Feeding frequency
Communications
Coach
- Communicates Goals and Objectivesto the Team Members
- Assures Team Members Are Listening
- Assures Team Members Are Communicating with Each Other
- Assures Team Members Are Performing Up to Capabilities
Teamwork
Team has overall Goals and Objectives- Tasks directed toward meeting
Goals and Objectives Each team member has Goals, Objectives
and Tasks
Coach focuses team members on overall Goals and Objectives
Who is your coach?
Communications
On-Farm Visit - View feed storage - View traffic routes
Provide field maps - Acreage per field - Access - Landmarks - Field names - Special features
Communications
Record keeping - Forms to use - Crop yield information - Equipment hour meter readings - Equipment settings
Complaints - Directly to custom operator not others - Explain what you want to make it right - Complain early - Complain calmly
Producer Can Reduce Harvest Time and Cost
Fields close togetherFields close to farmsteadLarge fields of regular shapeSmooth fieldsRemove stones and other obstructions
- Mark obstructionsWide gates and drivesFarm roads are smoothManeuvering room at storageMaintain communications
- Work through custom operator- Don’t micro-manage custom
operator’s employees
Comparing Custom Operators’ Services
What services are available
Charge rates – per hour, per acre, per ton etc.
Reliability- References- Past performance for you- How breakdowns are handled- How much reserve capacity
*extra equipment* extra labor* how tightly scheduled (continued)
Comparing Custom Operators’ Services
Insurance- Liability (on/off farm) – certificate- Workers compensation
Written vs Verbal Contract
Payment Schedule- Pre-Pay- Before leaving the farm- Soon after work is done- Monthly payment plan- Discounts for early/prompt payment- Late payment penalties
(continued)
Questions?