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

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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

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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

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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

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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.

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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

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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

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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

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Questions?