FREQUENTLY ASKED QUESTIONS
Background Information to the Ring
What is a Machinery Ring?
The Ring is a co-operative society of farmers together with agricultural and rural businesses who have the aim of reducing machinery and labour costs. The Supplier benefits by spreading his machinery costs over a larger area and the Demander is able to reduce his capital investment in labour and machinery, while at the same time having up to date equipment when he needs it. The idea of Machinery Rings is far from new, they have been operating in Europe since the early 1950s.
How does a Machinery Ring operate?
A Member requiring a particular service contacts the local Ring office, who in return contacts Suppliers until he finds one available to carry out the work. The Supplier contacts the Demander and they arrange for the work to be done. A Member can request a specific Supplier or state who he does not wish to use.
Does RAMSAK cater for all types of farming and rural business?
R.A.M.S.A.K. caters for all areas of farming and rural business regardless of acreage, crop types, or other parameter. The Ring does a large amount of work throughout the year for Arable, Livestock, Fruit and Veg farms together with work for other Rural businesses like Amenity works, Estate works, deliveries etc etc. It is hoped that the Ring can cover pretty much whatever it is asked with at least one Member offering the required service.
How is payment arranged?
When a Member has completed work on another Member’s farm or business premises, he fills in a work schedule ticket which is sent to the Ring office. A computerised system at the main office raises a self billing invoice on behalf of the Supplier and an invoice is sent to the Demander. Members have an agreement that enables collection of monies due from the Demander at 14 days by Direct Debit, and payment to the Supplier by credit transfer at 28 days. (RAMSAK charges a levy on transactions between Members which is invoiced at the same time.)
How much do members charge each other?
The Ring office is able to give guidance on the going rate for the job, but it is up to Demander and the Supplier to negotiate the final price to reflect the variety of working conditions. The rules require that Suppliers, if they quote a rate for a service outside the ring, work at their most competitive within the Ring.
Does my insurance company cover me as a supplier?
Members must advise their Insurance Company that they may be undertaking work through the Ring. Most Insurance Companies view the use of farmers’ machinery for Ring work as part of everyday farming activity. It is a requirement that all machines are sent out properly guarded and that operators hold the appropriate Certificates of Competence where applicable.
What happens if there is a dispute?
Disputes between Members are not common, but when the unforeseen does happen, the Ring Manager will suggest a solution. Failing that, an aggrieved Member may take the dispute to the Board of Directors, whose decision is final.
How much does it cost?
Every Member owns one share in RAMSAK Ltd. These cost £50.00 each and are not transferable or refundable. Members pay an annual subscription; there are three different Membership types.
| Full Membership | £130 +VAT |
| Agency Membership | £75 +VAT |
| Self Employed Labour Membership | £50 +VAT |
Membership can be seen as either a cost effective form of annual advertising, reaching a large and specialised market, or an insurance against mechanical breakdown. In reality, most Members find they can take advantage of both benefits at some stage.
How does a contractor benefit?
The Ring gives access to a wide range of customers and assists in the collection of money. To be paid within 28 days is a benefit in today's difficult economic climate. The Contractor is still free to work outside the Ring and he has the added advantage to call on the Ring to cover seasonal peaks, breakdowns and the need for additional skilled labour.
