Farming News - NAAC published Contracting Prices Survey for 2021-22
NAAC published Contracting Prices Survey for 2021-22
A new survey of contracting prices for 2021-22 has been published by the National Association of Agricultural Contractors, giving a UK national average to help contractors and farmers benchmark when working out their individual costings for an operation.
Spiralling input costs over the last year have continued to apply pressure across the industry and, whilst prices have increased overall, contractors struggle to keep pace. Commenting Matt Redman, NAAC Chairman said, ‘Many contractors report they have difficulty increasing their prices due to local competition. However, the cost of machinery has gone up 40% in the last ten years, with machinery prices rising, some up to 8% in the last year, and if farmers are demanding a reliable, efficient, safe and innovative service they must expect to pay a sustainable rate.’
The expectations on contractors continue to escalate. Environmental awareness, specialist training, record keeping and the latest technology on board, all require a new level of expertise and equipment. Farmers are increasingly reliant on their contractor to take on roles in the business that they may no longer have the labour, skills or machinery to complete. However, it is vital that everyone works in partnership to ensure businesses can remain viable, with longevity. For a successful contractor, that means costing individual operations carefully and accurately.
‘Our industry has the potential to really drive forward agricultural productivity, in an environmentally-sound format,’ said Matt Redman. ‘We are investing heavily in new technology, but we must be vigilant and ensure we can afford the costs of running a business, whilst remaining at the forefront of innovation.’
The results of the survey are a useful benchmark to the industry but will vary significantly with region, soil type, customer size and machinery, and customers should expect to see prices quoted higher or lower. While cost is important to any business, farmers should also be considering the quality, reputation and reliability of their contractor to get a job well done.