Contracting prices increase - NAAC releases latest survey of fees

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 pound 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.

Some of the guide prices include £66.55 per hour for slurry spreading (tanker trailing shoe or dribble bar); grass mowing, £14.81 per acre; tedding, £8.55 per acre; raking, £8.93 per acre.

Baling cost per bale – small conventional, 88p; 120cm x 70cm, £5.84; 120cm x 130cm, £8.06; round 120cm, £3.84; round 150cm, £4.69.

Jill Hewitt, NAAC Chief Executive, commented: “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 has recently launched a new online pricing tool for its membership, with Andersons Consulting, which allows contractors to evaluate each operation, considering all costs, so that they can see 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, taking into account fuel costs, area of work, work rate, labour, downtime and profit.

This will allow quotes to be made, backed up by statistics, to get to 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/