Contracting Prices Survey Launched

• The National Association of Agricultural Contractors (NAAC) has released its latest survey of contracting prices and overall results highlight that some price rises are inevitable again this spring. The new prices survey for 2024 can be found here and attached

There is a general upwards trend in prices this year, although this varies across operations and, due to the nature of surveys, some prices have increased substantially whilst other have barely shifted.

The UK inflation rate has hovered around 5% in recent months, whilst we have seen fuel prices fall from £1.00/litre in last year’s survey, to £0.85/litre this year.  However, at the same time machinery, labour and insurance costs have all increased significantly, which will more than offset any fuel reduction. This year the drilling category has increased by 3.46%, which is in line with the 3.5% increase seen in 2023.

Commenting Matt Redman, NAAC Chairman said, ‘This is already a difficult and frustrating year for the whole industry, with high rainfalls and sodden ground frustrating efforts to get crops in the ground. However, all contractors must continue to review their price structures and keep steadfast on payment terms to ensure that businesses are able to continue to supply farmers with reliable, professional contracting services.’

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 is vital that prices are carefully calculated to ensure businesses can keep pace with depreciation and replacement costs.

Jill Hewitt, NAAC CEO added, ‘The survey has highlighted again how individual charges vary widely across the UK, with businesses reaching different conclusions on rates needed to offer a professional service. However, the NAAC holds firm that contractors generally take significant financial risk, and their prices need to reflect costs, allowing contractors to remain profitable and sustainable, supporting their customer base.’

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