Under pressure

This is never an easy task. While most farmers settle their account within the agreed terms, there are always a few that drag out payments or those who are constantly behind. Even one or two outstanding invoices can have serious knock-on effects that can impact the contractor’s ability to meet their financial payments on time. This is nothing new, but the net result is it can affect the contractor’s credit rating both with his bank and finance houses on which they rely to keep their business going.

Carrying the burden

I cannot think of any business that supplies high-cost services that does not require an upfront deposit and full payment on completion. Contractors carry a heavy financial burden, having to spend in advance on labour, fuel, insurance and repayments on highly expensive machinery, without which the majority of famers would not be in business. My plea to any farmer delaying payment is to recognise that, just like themselves, agricultural contractors are under fierce financial pressure. If they want to have their services next year and into the future, the solution is in their hands. Having said that I am the first to recognise that contractors have often been their own worst enemy. From the very first days of agricultural contracting, I saw my grandparents paying the contractor as he left the farm. Later as the contractors got increasingly busy, they rushed from farm to farm and payment was left for another day.

The contractor won’t wait

But times have changed and with escalating costs, prompt payment has become increasingly important. Sometimes this doesn’t happen and the attitude can be, ‘sure the contractor will wait’.
I will never break the confidence of any contractor seeking help from PAC Ireland, but I can say this year there has been an increase in those looking for advice on how to deal with large outstanding debts and negotiating with banks and financial institutions to reschedule loan repayments. I cannot stress enough how important it is, that at the earliest sign of not being able to meet a repayment and before defaulting, you make contact with your lender. PAC Ireland helps members to do this and assists in drawing up a sensible solution to a problem that can easily escalate and become unsolvable if a head-in-the-sand approach is taken.

Do not become a statistic

As we head into the festive season, it is a time to reflect on the safety of our contracting businesses and farms. Dark mornings and evenings, along with extreme weather conditions, bring specific dangers. Remain vigilant and be mindful of the safety of your workers, your family and yourself.
Do not become a statistic. Of course, we keep in our thoughts and prayers those who have lost a loved one, and those whose lives have been changed by serious injury.

Wishing you all a warm and peaceful Christmas.