Ontario Grain Farmer September 2023

18 WHEN IT COMES to outsourcing fieldwork, Martin VanZandwyk says hiring a professional agri-contractor is a no-brainer. Not only does he have access to the latest planting and harvesting technology, but VanZandwyk is realizing higher crop yields and saving operating costs. A Wellington County broiler, beef, and grain farmer, VanZandwyk grows 500 acres of corn, soybeans, wheat, and alfalfa. He used to manage his own fieldwork, working alongside his dad, but as his poultry and livestock responsibilities grew and field equipment breakdowns became more frequent, he quickly realized outsourcing some fieldwork made more sense. “Today, I couldn’t pencil out the cost of running my own planting and harvesting equipment,” says VanZandwyk. “At the end of the year, my financial statements show I spend more on crop inputs than on custom operating. It’s very affordable.” WORKING WITH PROFESSIONAL AGRI-CONTRACTORS The affordability of working with a professional agri-contractor comes despite rising operational costs — something that is affecting all farmers. A recent interim survey conducted by the Ontario Professional Agri-Contractors Association (OPACA) found the average custom operating rate has increased by roughly 25 per cent since the latest Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) custom rates survey was released in 2022. Mark Luymes, OPACA director, explains that while the OMAFRA survey was conducted in 2021, the rising fuel and Professional agri-contractors CUSTOM FARMING SERVICES AND RATES ARE ON THE RISE Jeanine Moyer MARTIN VANZANDWYK (LEFT) AND MARK LUYMES (RIGHT) ON VANZANDWYK’S FARM IN WELLINGTON COUNTY. PHOTO COURTESY OF OPACA. equipment prices meant the report was outof-date even before its release. “The challenge is that many farmers who hire custom operators and those who provide custom services rely on this benchmarking information to help inform and set rates,” explains Luymes, co-owner of Luymes Farms Ltd., a family run contracting business that works nearly 9,000 acres in Wellington and Perth counties, including Van Zandwyk’s. “That’s why OPACA did a ‘check in’ with members to determine more realistic rates that reflect the higher cost of doing business.” In March 2023, OPACA asked 20 members to answer many of the same questions in the OMAFRA custom rates report. While the interim survey showed rates varied by business and equipment, the results revealed that the hike in all service fees across the province is a direct result of the surge in operational costs, including fuel, labour and equipment prices. Luymes says that while the member consultation was initiated as a response to the OMAFRA report, the organization will continue to work with the Ministry to conduct regular surveys and rate reports. As expenses increase, Luymes reminds farmers to look beyond the numbers when working with a professional agri-contractor. Many contractors offer advantages of the latest technology, including row shut-offs and variable rate technology to establish uniformity and improve yield or tire inflation systems to reduce soil compaction. Contractors can also be viewed as an extension of a farm business team. All operators are trained and experienced, and many offer on-staff agronomists and mechanics to provide expert advice and service. Luymes explains many of his customers also rely on him for an extra set of eyes on their fields. And after covering thousands of acres each season, he is well-equipped to provide solutions and recommendations to help his customers Industry News

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