Boosting farm incomes is contractors key role, survey says

Survey shows supporting farm income is the main reason for offering agricultural contracting services
Survey shows supporting farm income is the main reason for offering agricultural contracting services

Agricultural contracting now provides a crucial contribution to many farm incomes in today’s highly-competitive marketplace, a survey has concluded.

Four in ten respondents (40%) to a survey conducted by NFU MUtual said supporting farm income was the main driver for providing agri-contracting services.

For a quarter of respondents (25%), the reason for going into contracting was to get a step on the farming ladder.

The farming industry has seen considerable growth in the agricultural contracting sector over the last few years.

With the phasing out of the Basic Payment Scheme (BPS), experts predict that contracting is only going to grow in its importance.

Charlie Yorke, Agri-Contracting Specialist at the rural insurer, said: “Our latest survey provides clear evidence that contracting now provides a crucial contribution to many farm incomes in today’s highly-competitive marketplace.

"The growth in contracting also makes it possible for modern, high-tech equipment to be used to get time-sensitive jobs done safely and efficiently."

He added: “In an era where many farms struggle to support the younger generation, our research found a quarter of respondents saw contracting as a route into agriculture.

"Contracting is not only providing an opportunity for young farmers to plough their own furrow in the industry but also gives entirely new entrants a chance to start a farming career.”

Almost a fifth of survey respondents (18%) said contracting offered a way to develop expertise in a chosen field, while 17% said it offered a way to invest in modern farm machinery.

NFU Mutual research conducted earlier in 2020 found the vast majority of farmers (60%) employed some form of contractor - but this figure is most likely greater when all services carried out by contractors are taken into account.

Mr Yorke said: "As well as having strength in the crop support and maintenance sector, agricultural contracting spans a wide range of livestock and land management services which are vital to the industry.

"As farm support changes to a system based on enhancing the environment, we also think it’s likely that contractors will play an increasingly important role in providing services and skills to enable farmers to qualify for payments.”

A separate survey looking at the criteria farmers use to select contractors revealed that farmers are less likely to compromise standards and safety over speed.

Getting the job done safely and well was the first choice for over half of respondents (51%), followed by contractor expertise (19%), while value for money took third place (18%) and lastly – getting work done quickly (12%).