Using a Custom Harvester Factors to Consider January

Using a Custom Harvester Factors to Consider January 30, 2005 Brian Holmes Extension Agricultural Engineer Biological Systems Engineering Department University of Wisconsin - Madison

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)

(continued) Benefits of a Custom Operator Reduced Capital Investment, Borrowing, Leasing Lower Cost of Production No Hired Labor Custom Operator’s Labor Is Well Trained and Works Hard Less Oversight and Scheduling Variety of Services Available Higher Milk Production per Ton or Acre

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)

(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

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 Together Distrust Custom Operator Full Trust Time Customer Distrust Communications not established Unreliable/unpredictable performance Parties behave more independently Issues can be external forces or because of internal behaviors No loyalty established Good Communications Consistent performance Teamwork to resolve issue Most Issues caused by external forces Loyalty to each other Mutual benefits

Building Confidence Producer Custom Operator Letter of credit References Personal References Insurance certificate Pay on time Perform service adequately and in timely manner How break downs/employee no shows are handled Obtain help from competitors or lease equipment to get the job done Communicate needs Deliver on promises - don’t jump the gun (continued)

Building Confidence (continued) Producer Custom Operator Be flexible Have labor and equipment ready to go Equipment Reliability - New Equipment - Parts Inventory/access - Preventive maintenance Commit to agreement early (winter) Seriously consider advice Give good advice Plant different maturity corn to open harvest window Avoid surprises – communicate early

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 parties What each party will do What each party will not do Service cost rates Penalties Conflict resolution Warranties Limitations on damages Have attorney read Signed by all parties

Communications Producer Talk. . . Custom Operator Not Listening. . .

Communications Producer Not Listening. . . Custom Operator Talk. . .

Communications Producer Custom Operator Listening Talk Read Written Materials Talk Listening Written Materials Read

Its all about TEAM WORK! Compliments of Chuck Grimes

Feed Production Team Dairyman Crop Producer Harvester Storage Filler Agronomist Nutritionist Feeder Lender Others?

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 Objectives to 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 together Fields close to farmstead Large fields of regular shape Smooth fields Remove stones and other obstructions - Mark obstructions Wide gates and drives Farm roads are smooth Maneuvering room at storage Maintain 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 (continued) 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

Questions?