The Association of Farm and Forestry Contractors in Ireland’s second annual conference took place in Portlaoise on 2 October, with an array of speakers.
Janneka Wijnia-Lemstra, managing director of the Dutch contractors association CUMELA, became involved with agricultural contracting through her work on the regeneration of a wind farm.
“The farmers needed to start cooperating with each other and I liked working with farming entrepreneurs, so I felt [working with CUMELA as a next step] was the right move.
"The work of contractors in the Netherlands is diverse, with rural work, building golf courses and roads, etc, now 60% of the work, versus 40% agricultural.”
Janneke Wijnia Lemstra.
Of the 3,000 contractors in the Netherlands, approximately 75% are members of CUMELA. This is important, as the organisation needs to show it represents a certain percentage to negotiate collective employment agreements with unions.
Detailing the challenges facing the sector, Janneka noted the 2,000 tractors that descended on The Hague in response to government proposals to reduce the cattle herd by 50%.
Janneka explained that there is a growing negative image of farmers in the Netherlands – they are an “easy group” to target on the environment.
We need to be there lobbying, otherwise you do not know how many rules they are inventing in Brussels that are unworkable
“Young farmers are not coming in and that means that farmers are going to sell their property. Other farmers will take over and as they get bigger, they do not need the contractors, as they have the machinery themselves.”
CUMELA plays an active role lobbying in Brussels through the contractors association Ceettar.
Janneka places huge importance on this: “We need to be there lobbying, otherwise you do not know how many rules they are inventing in Brussels that are unworkable.”
When Janneka first took over as CEO she was sceptical of women-only events, but has seen the benefits of learning and networking among women.
She acknowledges the importance of a female voice around board tables, but advocates that women are capable of getting there themselves.
Mary McDonagh, head of payroll with ifac in covering the new Revenue payroll system said: “PAYE modernisation has been a learning curve this year for everyone, including Revenue. The Revenue have been quite lenient this year but make sure that you are up to speed as they will be less lenient next year.” Non-compliance can lead to a fine and/or an audit.
Mary McDonagh.
Mary advised contractors to move away from agreeing a net wage. “This is one of the biggest issues we have because when you agree a net pay with no idea of the employees allowances, you can end up paying a huge amount when it is grossed up.”
Nett to gross – cost to employer
Employee with standard single persons allowance €707.19Employee on emergency tax with a PPS number €773.63.Employee on emergency tax without a PPS number €1,154.58.Creditors
Catherine O’Halloran finance manager at Templetuohy Farm Machinery (TFM) took us through some very practical steps to manage cashflow.
Catherine O'Halloran.
“Our biggest creditor is paid daily, therefore there is a constant drain on the account – we say the hoover has taken it out during the night.”
They introduced a system where if an individual order number was not submitted for items purchased, then the purchase invoice is returned. This had a twofold benefit as keeps control over what you are purchasing but also helps you to review your overall purchases.
Out-goings
Banking commitments: big loans are scheduled when income is at peak but communication is key. Management of time sheets is vital. In terms of VAT – apply focus to ensure funds are available when required.Main challenge is managing debtors with all new accounts on a cash sale basis with TFM. “The pipe coming into the bucket must be bigger than the pipe coming out.”
Cash is king. Don’t overextend credit.For certain customers such as dairy farmers, annual payment plans with monthly payment plans work well. Use whatever incentives you can to get paid. Succession in a farm contracting family business
Clare O’Keeffe is well recognised in Ireland as a go-to person in terms of succession planning.
Clare O'Keeffe.
She focused on the dreaded Ds:
Detail:
If something happened to you, where are the all the passwords and codes – are they in your head or can someone else log into the system? Put this information in a notebook.
Divorce
It doesn’t kill you, but plan for it. You might be poorer after but you will be still alive.
Dementia
It is really important that you are well when decisions are made - have the solicitor sorted before you need the doctor.
Deal
Be aware of how the fair deal scheme will impact on your business
Death
In terms of family there a difference between fair and equal which needs to be discussed
Margaret Hawkins spoke about health and the farm contracting family stating: “Health is vital for sanity and quality of life. Get checked out and October is a good opportunity to get this done.”
Margaret Hawkins.
The body stuff:
Contractors work huge hours and tiredness can kill. When running businesses, good plain ordinary facilities such as “investing in a mobile portaloo” would be beneficial for bowel health. A cooked dinner may have been brought to the field in the past but now there is a dependence on deli counters and this is not good food. Eat as well as you can at home. So much time is spent sitting in tractors so mind your back.
The head stuff:
“Cultivate the skill of living well with uncertainty but control what you can,” says Margaret. The mobile phone was the best development in technology according to research, but the smartphone is a huge invasion with too much access to information, so only use it as necessary.
The money stuff:
Invoice properly, be able to read a set of accounts and face the paperwork or pay someone to help with it if stress is getting in the way.
“Debt is a major issue on farms. Get help from MABs if required. The loss of the beet in our house was like a bereavement and we are still recovering.”
The Association of Farm and Forestry Contractors in Ireland’s second annual conference took place in Portlaoise on 2 October, with an array of speakers.
Janneka Wijnia-Lemstra, managing director of the Dutch contractors association CUMELA, became involved with agricultural contracting through her work on the regeneration of a wind farm.
“The farmers needed to start cooperating with each other and I liked working with farming entrepreneurs, so I felt [working with CUMELA as a next step] was the right move.
"The work of contractors in the Netherlands is diverse, with rural work, building golf courses and roads, etc, now 60% of the work, versus 40% agricultural.”
Janneke Wijnia Lemstra.
Of the 3,000 contractors in the Netherlands, approximately 75% are members of CUMELA. This is important, as the organisation needs to show it represents a certain percentage to negotiate collective employment agreements with unions.
Detailing the challenges facing the sector, Janneka noted the 2,000 tractors that descended on The Hague in response to government proposals to reduce the cattle herd by 50%.
Janneka explained that there is a growing negative image of farmers in the Netherlands – they are an “easy group” to target on the environment.
We need to be there lobbying, otherwise you do not know how many rules they are inventing in Brussels that are unworkable
“Young farmers are not coming in and that means that farmers are going to sell their property. Other farmers will take over and as they get bigger, they do not need the contractors, as they have the machinery themselves.”
CUMELA plays an active role lobbying in Brussels through the contractors association Ceettar.
Janneka places huge importance on this: “We need to be there lobbying, otherwise you do not know how many rules they are inventing in Brussels that are unworkable.”
When Janneka first took over as CEO she was sceptical of women-only events, but has seen the benefits of learning and networking among women.
She acknowledges the importance of a female voice around board tables, but advocates that women are capable of getting there themselves.
Mary McDonagh, head of payroll with ifac in covering the new Revenue payroll system said: “PAYE modernisation has been a learning curve this year for everyone, including Revenue. The Revenue have been quite lenient this year but make sure that you are up to speed as they will be less lenient next year.” Non-compliance can lead to a fine and/or an audit.
Mary McDonagh.
Mary advised contractors to move away from agreeing a net wage. “This is one of the biggest issues we have because when you agree a net pay with no idea of the employees allowances, you can end up paying a huge amount when it is grossed up.”
Nett to gross – cost to employer
Employee with standard single persons allowance €707.19Employee on emergency tax with a PPS number €773.63.Employee on emergency tax without a PPS number €1,154.58.Creditors
Catherine O’Halloran finance manager at Templetuohy Farm Machinery (TFM) took us through some very practical steps to manage cashflow.
Catherine O'Halloran.
“Our biggest creditor is paid daily, therefore there is a constant drain on the account – we say the hoover has taken it out during the night.”
They introduced a system where if an individual order number was not submitted for items purchased, then the purchase invoice is returned. This had a twofold benefit as keeps control over what you are purchasing but also helps you to review your overall purchases.
Out-goings
Banking commitments: big loans are scheduled when income is at peak but communication is key. Management of time sheets is vital. In terms of VAT – apply focus to ensure funds are available when required.Main challenge is managing debtors with all new accounts on a cash sale basis with TFM. “The pipe coming into the bucket must be bigger than the pipe coming out.”
Cash is king. Don’t overextend credit.For certain customers such as dairy farmers, annual payment plans with monthly payment plans work well. Use whatever incentives you can to get paid. Succession in a farm contracting family business
Clare O’Keeffe is well recognised in Ireland as a go-to person in terms of succession planning.
Clare O'Keeffe.
She focused on the dreaded Ds:
Detail:
If something happened to you, where are the all the passwords and codes – are they in your head or can someone else log into the system? Put this information in a notebook.
Divorce
It doesn’t kill you, but plan for it. You might be poorer after but you will be still alive.
Dementia
It is really important that you are well when decisions are made - have the solicitor sorted before you need the doctor.
Deal
Be aware of how the fair deal scheme will impact on your business
Death
In terms of family there a difference between fair and equal which needs to be discussed
Margaret Hawkins spoke about health and the farm contracting family stating: “Health is vital for sanity and quality of life. Get checked out and October is a good opportunity to get this done.”
Margaret Hawkins.
The body stuff:
Contractors work huge hours and tiredness can kill. When running businesses, good plain ordinary facilities such as “investing in a mobile portaloo” would be beneficial for bowel health. A cooked dinner may have been brought to the field in the past but now there is a dependence on deli counters and this is not good food. Eat as well as you can at home. So much time is spent sitting in tractors so mind your back.
The head stuff:
“Cultivate the skill of living well with uncertainty but control what you can,” says Margaret. The mobile phone was the best development in technology according to research, but the smartphone is a huge invasion with too much access to information, so only use it as necessary.
The money stuff:
Invoice properly, be able to read a set of accounts and face the paperwork or pay someone to help with it if stress is getting in the way.
“Debt is a major issue on farms. Get help from MABs if required. The loss of the beet in our house was like a bereavement and we are still recovering.”
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