Agricultural contracting prices are set to see an ‘inevitable’ price rise this spring according to a new survey released by the National Association of Agricultural Contractors (NAAC).
The latest survey of contracting prices and overall results give a national average to help benchmark when working out costings for an operation.
There is a general upwards trend in prices this year, although this varies across operations and due to the nature of surveys some prices have increased substantially whilst other have barely shifted.
The UK inflation rate has hovered around 5% in recent months, with fuel prices falling from £1.00 per litre in last year’s survey, to £0.85 per litre this year.
However, at the same time, machinery, labour and insurance costs have all increased significantly, which will more than offset any fuel reduction.
This year the drilling category has increased by 3.46%, which is in line with the 3.5% increase seen in 2023.
Matt Redman, NAAC chairman said: “This is already a difficult and frustrating year for the whole industry, with high rainfalls and sodden ground frustrating efforts to get crops in the ground.
“However, all contractors must continue to review their price structures and keep steadfast on payment terms to ensure that businesses are able to continue to supply farmers with reliable, professional contracting services.”
NAAC members are encouraged to calculate their individual costs using the NAAC’s costing tool to ensure that quotes are accurate and sustainable.
Jill Hewitt, NAAC CEO added: “The NAAC holds firm that contractors generally take significant financial risk, and their prices need to reflect costs, allowing contractors to remain profitable and sustainable, supporting their customer base.”
