Pelham Farming Company
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Operating within an 8 mile radius, the business provides harvesting and cultivations to local farming businesses. Current combined area of 4441 hectares. Chairman: Jamie Gwatkin. Directors: Arnold and Edward Hitchcock, Michael and Ian Watson. | Contact Details: Arnold & Edward Hitchcock |
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Full Member | Phone:01279 777878 |
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| Following a tentative approach the partners in two neighbouring farming businesses with similar extensive arable cropping systems decided in late 1999 that co-operating on a formal basis could bring benefits to both businesses.In early 2000 a business plan was prepared and outside consultancy advice sought.It was clear from the outset that the greatest benefit would be by joining together for the harvesting, cultivation and crop establishment periods only. Both businesses operated self propelled sprayers and by applying liquid fertiliser across the individual acreages, savings by co-operating in this area could not be demonstrated. Both, however, were doing outside contracting and the owners of these farms responded positively to the prospect of the work being undertaken by a joint venture business.The company started trading on 1st March 2000. Working capital was raised by share and loan capital from the farming partners, bank overdraft and HP agreements with NFU Mutual Finance. An outside non-executive chairman was appointed with the four farming partners completing the board.The company operates within an 8 mile radius and provides, as needed, harvesting and cultivations to local farming businesses. 70% of the acreage contracted, however, is for the parent businesses. The total combined area in 2007 was 4451 acres.The financial objective is to deliver the maximum benefit to these parent businesses and to generate sufficient profit within the company to fund reinvestment on a five year cycle. Two new combines are hired annually and a non-inversion cultivation system is followed based, now, on Vaderstad equipment.The directors remain hands on but recognise that the future challenge is managing succession, identifying and training good operators, maintaining tight cost control against the background of rapidly rising costs and responding to any profitable opportunities to develop the business, perhaps with others, through delivering a high standard of work. | ||
