A feasibility study for the formation of a machinery ring

A simple introduction as to what a machinery ring is could describe it as “a management co-operative whose members, through a central office and accounting system, seek to rationalise their machinery and labour levels by doing work for and/or having work done for them by other members. It aims to make best use of members’ machinery capacity by hiring it among members at competitive rates. The real or true cost of ownership of farm machinery has been well documented and in most cases there is a very strong financial argument against private ownership. One of the main arguments for private ownership of plant and machinery is security of independence and also it enables good timeliness of completing the job which is a very important factor for the successful farmer. It may well be cost efficient to own the major items of plant and machinery that you use frequently, however, there are often many thousands of dollars tied up in plant that may only be used for a few days each year, and your neighbour is in the same situation with the same piece of machinery. Even if your plant value is realistic it could still be worth your while to consider membership of a machinery ring even if it is just for access to specialist plant and machinery.