The latest survey for contracting prices indicates an inevitable hike this spring.
The National Association of Agricultural Contractors (NAAC) has released its 2023 survey, providing the national average prices.
While the UK inflation rate is currently more than 10%, the NAAC survey highlights modest increases in contracting rates. Results show that overall soil preparation costs have increased at just over 4%, with the drilling category rising almost 3.5% since last year. Within individual services, some prices have increased considerably, while other have barely shifted.
Price structure reviews
Fuel, labour and input costs have continued to increase, with the NAAC advising members to review all pricing structures to ensure profitability.
NAAC chief executive, Jill Hewitt, believes prices simply cannot stand still. “Farmers should be entering into conversations with their contractor to ensure price rises allow both parties to run sustainable businesses, while moving forward in terms of productivity and technology.”
Online pricing tool
To assist, the NAAC encourages members to use their online pricing tool, developed with Andersons Consulting. This allows contractors to evaluate operations while considering all costs, to indicate the ‘cold, hard facts’ for each job.
The tool takes account of numerous variables such as depreciation, repair costs of individual machines, yard costs, insurance and office staff, before breaking each job down into fuel costs, area of work, work rate, labour, downtime and profit. Quotes can then be issued, backed by statistics.
Vital resource
With more than 90% of farmers using a contractor, the NAAC recognises their vital role in UK agriculture.
To read the survey, visit here. For last years insight, see CPM’s article.
