A new survey has been released looking at contracting prices, with overall results pointing toward an 'inevitable' price rise this spring.
The survey of contracting prices for 2024 has been published by the National Association of Agricultural Contractors (NAAC), giving a national average to help benchmark when working out costings for an operation.
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 fuel prices have fallen 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.
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 has encouraged members to calculate their individual costs using its costing tool to ensure that quotes are accurate and sustainable.
As machinery expenditure continues to climb, the body said that it was vital that prices were 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."
