Calling in the cavalry

FOR those looking for an extra tractor and trailer for a short period of time, renting is now a realistic option. During busy times on the farm like silage harvesting, resource are stretched to the limit; traditionally, neighbours might offer machinery to help out, but that option isn’t always reliable.

Contractors also rent tractors and trailers if they need to bring in extra power or numbers for a given job. It is useful to have an idea of rent prices for various tractor and trailer sizes because, if done correctly, renting can be a short-term solution to a short- term horsepower problem.

A purchased tractor or trailer is a fixed asset that will depreciate in value sharply, with the rate of depreciation frontloaded onto the newer years of ownership.

We all know that if a tractor isn’t working, it isn’t paying for itself so, unless you have yearround extra demand for work, hiring could be the smarter option. When it comes to this time of year and harvesting silage, I know a lot of contractors who are fans of the renting approach.

Typically they take out an extra tractor or two to increase work rates and keep up with farmer demand as it arises.

The idea is that the extra tractor is rented in for a few weeks at the busy shoulders of the year in spring and late summer/autumn.

In this way the contractor will get the benefit of the extra work the hired tractor will get through when the weather suits and demand is high.

Crucially, the contractor also doesn’t have to deal with the opportunity cost of turning any jobs away for fear of losing further potential work from a new customer.

And the best part of the deal is that when things are quieter, the renting party can hand the tractor and keys back to the lease company and settle the bill.

The asset doesn’t have to sit idle in a shed through quieter months while the owner worries about making repayments.

Rates

It isn’t difficult to find out what typical daily and weekly hire costs are.

Some of the largest and most progressive tractor dealerships in Ireland are offering comprehensive hire packages for tractors alongside their existing tractor sales business.

Agents like Templetouhy Farm Machinery (TFM are multi-branch John Deere agents), WR Shaw Ltd (New Holland dealers based in Laois) and Fingal Tractor Hire in Dublin all offer tractors of varying size for hire in either short or long-term packages.

There are also now specialised trailer hire machinery companies in Ireland, again offering various forms and sizes of trailers such as grain trailers, silage trailers and round bale haulage trailers.

The good news for those looking at taking on extra tractors is that hire rates have generally come down from six or seven years ago. According to the very useful TFM website (which lists all tractor hire prices), the firm has 100hp tractors like the John Deere 5100M available for weekly hire rates from as little as €500 plus VAT.

There is a significant discount for those looking at longer-term deals, where you can hire that same tractor out for a lower rate per week negotiable depending on the lease length.

Those hiring should be aware that there is usually a surcharge payable if you put more than 1,000 hours on the clock per year.

Meanwhile, WR Shaw Ltd are also in the tractor hire business with 13 years of experience of running a hire fleet; they tractors out to a lot of contractors in the surrounding area.

The company currently has a fleet of over 70 New Holland tractors.

One of the most in demand models by contractors doing silage work is the 145hp-rated