Machinery


Contractors struggle to increase fieldwork prices


• Margins squeezed as input costs rise • 91% of farmers now employ a contractor • Costings benchmark fi eldwork rates


P


rices charged by agricultural contractors are largely simi- lar to last year – despite high- er input costs and buoyant commod- ity markets.


Spiralling farm input costs over the last year continuing to pile pressure on farm incomes. But many agricultur- al contractors say they have diffi culty increasing their prices for key opera- tions due to local competition. Some machinery prices have gone up 8% in the past year, according to the National Association of Agricul- tural Contractors (NAAC). It has pub- lished its fi gures to help contractors and farmers calculate individual cost- ings for 2021/22 (see table). NAAC chairman Matt Redman said contractors had struggled to increase their prices to refl ect higher costs. And he cautioned: “If farmers are demand- ing a reliable, effi cient, safe and inno- vative service they must expect to pay a sustainable rate.”


Contracting costs (£/ha) 2021


Ploughing light land


heavy land Disc harrowing


Cereal drilling conventional combi-drilling direct drilling


Fertiliser spinning disc liquid


Crop spraying


Combining cereals


(Source: NAAC) 44 MIDLAND FARMER • JULY 2021


63.19 67.09


59.00


51.37 63.81 59.24


12.40 13.38


13.89


oilseed rape (windrow) 94.12 oilseed rape (direct)


93.13 92.63


Hefty investment Meanwhile, expectations on contrac- tors continue to escalate. Environmen- tal awareness, specialist training, re- cord keeping and the latest technology all require higher levels of expertise and investment in equipment. Farmers were increasingly reliant on contractors, said Mr Redman. It was vital that everyone worked in partner- ship to ensure businesses remained viable over the long term – with indi- vidual operations costed carefully and accurately.


“Our industry has the potential to really drive forward agricultural productivity, in an environmentally- sound format,” said Mr Redman. This included producing food while helping to meet net zero targets. Mr Redman said: “We are investing


heavily in new technology – but we must be vigilant and ensure we can afford the costs of running a business, while re- maining at the forefront of innovation.’


2020


63.13 66.86


59.00


49.98 63.59 58.72


12.31 13.16


13.37


92.96 94.12 92.63


Useful benchmark The survey is a useful benchmark to the industry but rates will vary sig- nifi cantly with region, soil type, cus- tomer size and machinery. Customers should therefore expect to see higher or lower prices quoted. The NAAC says many farmers struggling to operate without them. Contractors are land managers, ad- visors and protectors of the country- side. They provide skilled labour, high capital cost machinery and profession- al services. With it becoming increasingly ex- pensive for farmers to run all machin- ery in-house, some 91% of growers and livestock producers use a contractor for at least some of their fi eldwork, ac- cording to NAAC fi gures. While cost is important, farmers should also consider the quality, rep- utation and reliability of their contrac- tor to get a job done well, said Mr Red- man. Machinery prices had increased by 40% in the past decade and contrac- tors needed to refl ect this.


The full guide can be found online at www.naac.co.uk.


We must ensure we can afford the costs of running a business, says Matt Redman


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