Price rises are expected again this year, according to the National Association of Agricultural Contractors (NAAC) latest survey.
For the first time, the NAAC asked its members if they put up their prices annually by a percentage to reflect increasing costs and, if so, what percentage rise they would be introducing to cover inflation and labour increases this year.
The average increase is 5.7%, although there was a wide variation of predicted rises from 2-12%, says NAAC CEO Jill Hewitt.
Upward trend
Furthermore, the survey has shown a range of price changes reflecting a similar margin, in a general upward trend.
“A trusted partnership between a professional contractor and farmer will be essential this season, to successfully and safely look after the soil, environment, livestock and cropping in increasingly turbulent weather conditions.
“Working with a professional contractor gives the exciting opportunity to use everyone’s experience to maximum benefit. Many contractors will have vast knowledge working on different soil types, with different cropping and cultivations, they’ll have invested in machinery, staff and technology and can bring huge benefit on farm,” she says.
Inflation
However, Jill believes professionalism comes at a cost and the 2025 prices have generally gone up to take account of inflation and employment costs. “Carefully calculated costs on both sides of a partnership will ensure everyone can benefit,” she adds.
NAAC members are encouraged to calculate their individual costs using the NAAC’s costing tool to ensure that quotes are accurate and sustainable. As machinery expenditure continues to climb, it’s vital that prices are calculated to ensure businesses can keep pace with depreciation and replacement costs, concludes Jill.
