Machinery rings help through tough times
The Scottish Machinery Rings Association (SMRA) is supporting thousands of farmers and rural businesses through times of rising input costs and labour shortages.
The nine rings which make up SMRA collectively represent more than 7,250 member businesses spanning the length and breadth of Scotland, delivering services to their members ranging from machinery and commodity provision to training and skills development.
With energy prices of heightened concern to farmers, Borders Machinery Ring manager Michael Bayne said: ‘Farm input inflation is a real worry going forward, with enterprise margins certainly being affected.
‘Using the combined buying power of our co-operative, however, we were able to fix a price for gas oil over nine months from March to November at 54.1ppl.
‘The current spot price is now significantly higher at over 70ppl.
‘Market volatility looks set to remain, but the fuel fixed pricing that we offer to members can help them plan ahead, budget and reduce risk.’
Bruce Hamilton, chief executive at Tayforth Machinery Ring, echoed these thoughts.
‘A dry harvest meant that volumes of gas oil were down for us between June and September, but the price is 40 per cent higher than last year,’ he said.
‘With everyone talking about these incredible increases in costs, we know how worrying the outlook is for farmers.
‘Fortunately we had already fixed prices for fuel for this harvest, so it insulated our members from market price increases.’
In this challenging climate, the machinery rings’ buying power enables it to solidify forward contracts and provide a degree of certainty for all sizes of businesses, including utilities, fertiliser and other inputs.
Machinery rings have been one of the keystones of Scottish agriculture in recent times, with an expanding network of farmers, contractors and rural businesses.
Mr Hamilton continued: ‘Unlike a limited company, the profits that they secure are not taken out of the business, but instead reinvested back into the rings, which are all co-operatives.
‘All machinery rings have expansion plans. They want more staff to look after members, better equipment, better offices and the likes. That way we can truly support the sector, now and in the years to