What is a Machinery Ring?

A Machinery Ring is a means of matching surplus machinery and labour capacity in one agricultural business with a corresponding need in another local business. There is a need for both contractors as well as farmers as ring members. The Ring managers match up supply and demand, oversee overall work standards and supervise payments of the supplier by the demander through the Ring.

The Ring is a non-profit making co-operative registered under the Industrial and Provident Society Act whose primary aim is to encourage more rational joint use of machinery to the mutual benefit of ring members. The Ring acts only as an intermediary and not as a principal.

Who organises the Ring?

The Ring Manager plays a crucial role, it is his job to match the demand for work with those who are going to supply the services. The Manager will ask the owner of a machine to do work for another member and when the job has been completed to a satisfactory standard the Manager sends an account to the person who received the service. Payment is made by variable direct debit.

How is the Ring financed?

Revenue income comes from two sources, annual subscription (£120) and a levy on every operation carried out. 2% is levied on the supplier and 2% on the demander making a total of four pence in the pound. Share capital required has been set at £100 per member.

Who sets the charges?

The Ring publishes a guide price for every operation. The guide is reviewed as required. The prices are set at a market level, it is not a cut price operation. The price list is drawn up by the Board of Directors of the Ring in consultation with the Ring Manager. The price charged for a particular operation may be changed by prior agreement. The Manager should be aware of any alterations.

Area Covered?

The Ring was originally based on a 25 mile radius of Junction 12 of the M4 Motorway (Theale Exit), but is now expanding its business and services across a wider area. The territory is subsequently described as an area 50 mile radius from Reading (Junction 12 on th M4 Motorway)

Why are contractors involved?

The role of the contractor is a supplier to the Ring. They are necessary to provide a pool of labour and machinery. The benefit to the contractor is wider customer base and a defined payment system.

Does all my work have to go through the Ring?

It is expected that any new work where both parties are ring members would be put through the Ring. The strength of the Ring depends on the commitment of the members. Continued membership of the Ring is pointless if moonlighting occurs. Where there is a long standing arrangement in existence prior to the Ring formation the work can continue without reference to the Ring, but it is hoped where both parties are members that the work would be put through the Ring.

Do I have to carry out work when requested by the Ring Manager?

No

As a Demander can I specify who carries out my work?

Yes

Who is responsible for the standard of work?

The supplier is responsible, where a dispute arises the Ring Manager will be consulted and if necessary the Directors of the Ring.

How does a member work the system?

He contacts the Manager who puts the demander and supplier in touch. On job completion a triplicate, self-carbonated time- sheet book is completed and signed by both parties. Each retains a copy and the third is sent to the Ring office. On receipt the Ring office sends an invoice to the demander including half of the commission and authorises the Ring bank to debit the demander's designated account. This process is normally completed 21 days after the raising of the invoice. Once cleared the office sends the supplier a self-billing invoice for the work done less the other half of the agreed commission and authorises the Ring bank to credit the supplier account. The supplier will be paid in 28 days, subject to collection.