The National Association of Agricultural Contractors (NAAC) has released its latest survey of contracting prices and is advising farmers and customers to expect price rises.
With fuel prices at record highs and the costs of labour and machinery escalating, contracting prices are rising. The current survey was carried out based on a 1.00 per litre for fuel, and contractors are being advised to calculate their fees carefully to ensure they are covering costs and can make a margin. This survey is only an average figure and farmers should expect their contractors prices to vary, plus be prepared that a fuel surcharge may be necessary 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
The NAAC has recently launched a new on-line pricing tool for its membership, with Andersons Consulting, to allow contractors to evaluate each operation and consider all the costs. The tool takes account of numerous variables including depreciation, maintenance costs of individual machines and insurance. This will allow quotes to be made as accurately as possible, to deliver a price that is realistic.
Inevitably farmers will get what they pay for in their contractor going forward and if an efficient, professional service, with well-maintained reliable machinery is needed, then a partnership approach will be vital.
The new prices survey for 2022-23 can be found at https://www.naac.co.uk/pricesguide/
