The National Association of Agricultural Contractors (NAAC) has released its latest survey of contracting prices and is advising farmers to expect price rises.
Fuel prices are at record highs and the cost of labour and machinery continues to escalate, and the NAAC is stating that contracting prices will have to rise. The latest survey put fuel at £1 per litre but contractors are being advised to calculate their fees carefully to ensure they are covering costs and making a profit.
The survey represents an average figure so farmers should also expect prices to vary based on location and individual circumstances, and be prepared to see a full surcharge if prices continue to fluctuate.
Commenting Jill Hewitt, NAAC chief executive said: “These are difficult times for everyone, and it is vital that contractors work closely with their customers to ensure all businesses can remain viable and productive. Profit must not be a dirty word if contractors are to keep pace with new technology, training and investment in their businesses, to supply the professionalism, machines and skills that are increasingly being demanded to meet farmers’ sustainability and environmental targets.”
The NAAC recently launched a new online pricing tool for its membership alongside Anderson Consulting. This takes into account numerous variables such as depreciation, repair costs, yard costs, insurance and office staff and breaks each job down to account for fuel, area worked, work rate, labour downtime and profit.
The latest 2022-23 prices survey can be found at www.naac.co.uk