WORKING TOWARDS PAYMENT METHODS FOR HARVESTING THAT PROVIDE INCENTIVE FOR GOOD FARMING PRACTICE

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ONE of the market impediments hindering the adoption of best practice for harvesting is the one-price, dollar-per-tonne, payment method for harvesting. It provides no incentive for growers to improve farm layout or presentation for harvest, because the same price is paid for harvesting either way. Harvest operators have incentive to reduce cane loss. However, they have no incentive to reduce extraneous matter and soil in the cane supply. This paper outlines progress with a project sponsored by the Sugar Research and Development Corporation entitled ‘Measurement and feedback systems for improving market signals at harvest’. The project is operating at Maryborough, Mackay and Burdekin. Surveys were carried out to determine current payment methods and attitudes towards change. At Racecourse and Pioneer, most contractors are paid per tonne with the only variations being for long haulage distances. At Maryborough, most contracts use a base rate plus fuel. Many survey respondents saw a need to change to a more equitable system that reduces the current cross subsidisation. Harvesting groups at the three locations recorded log book information including fuel use, engine hours and elevator hours. Analysis of this information produced relationships between parameters such as crop size, row length, haul distance, fuel use and field efficiency. It also provided sufficient information to calculate the cost of harvesting for several payment methods such as hourly rate, base rate plus fuel and a sliding scale based on crop size. This paper presents the relationships derived and shows how harvesting charges would have varied with different payment systems. The payment method that was most sensitive to farm layout, field conditions, haul distance and crop size was hourly rate. The base rate plus fuel method gave very weak signals. A new base rate plus fuel method, where the base rate was calculated on a sliding scale dependent on crop size, was more responsive. The project is also providing an insight into field efficiency of harvesting through the use of the elevator hour meters. Operators were astounded that cane was elevated into the haulout for less than 50% of the time that the equipment was operating in many blocks. The hour meters have enabled operators to measure the effect of a change in practice such as the use of a multiplier (a machine that gathers two or three rows into one for harvest) on field efficiency.
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