2021 NAAC contracting survey published
21st May 2021
A new survey of contracting prices for 2021-22 has been published by the National Association of Agricultural Contractors (NAAC), giving a UK national average to help contractors and farmers benchmark when working out their costings for an operation.
Spiralling input costs over the last year have continued to apply pressure across the farming industry. Overall prices have increased, however contractors struggle to keep pace.
Commenting Matt Redman, NAAC Chairman said, ‘Many contractors report they have difficulty increasing their prices due to local competition.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.’
Meanwhile the expectations on contractors continue to escalate. Environmental awareness, specialist training, record keeping and the latest technology on board, all require new levels of expertise and equipment. Farmers are increasingly reliant on contractors to take on roles that they may no longer have the labour, or machinery to complete. With 91% of farmers now using contractors it is a vital part of the industry. In order for this to remain a sustainable model it is crucial everyone works in partnership, to ensure business longevity and viability. 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 serve as an industry benchmark, but costs will vary significantly with region, soil type, customer size and machinery. The report calculates average prices based on red diesel at 50ppl and suggests price per hectare or acre. Customers should expect to see prices quoted higher or lower than the averages. Whilst cost is important to any business, the quality, reputation and reliability of a contractor should always be considered.
The full survey can be downloaded from the NAAC website
