Farm contractors point to steeper charges for 2025/26

Agricultural contractors are looking to put up charges by almost 6% this year to keep ahead of their own rising costs, according to results from the latest survey by the National Association of Agricultural Contractors (NAAC).

The survey is used each year to produce indicative charges, though the association itself is quick to point out that the figures quoted are “for guidance only”.

See also: NAAC contractor price guide 2024-25

“It is important that contractors calculate their individual costs, as these will vary widely according to task and location,” said NAAC chief executive Jill Hewitt.

The actual prices may vary considerably between regions, soil types, distance travelled, size of contract undertaken, size and type of equipment used, amount of product applied etc, and are subject to negotiation with farmers. 

However, the tables produced by the survey are widely used as a benchmark across the industry and, based on contractor responses, it is expected that an average increase of 5.7% may be applied for 2025/26.

For example, the anticipated charge for disc harrowing is set to increase from last year’s £58.39/ha to £63.06/ha, while combining cereals is quoted at £119.35/ha, compared with £116.36/ha in 2024.

Higher costs

Ms Hewitt pointed to higher employment costs, given the recent changes to wages and employers’ national insurance charges.

“The cost of machinery is going up constantly too, so if contractors are to replace their kit, to ensure they have what is needed, they have to stay ahead,” she said.

Ms Hewitt acknowledged that margins are tight and, with the demise of the Basic Payment Scheme in England, farmers may be less able and willing to invest in their own new kit.

“This makes it even more important that contractors can stay ahead – they are now an essential part of the farming process.”  

The NAAC estimates that more than 90% of farmers use a contractor at some point in the farming year.

NFU deputy president David Exwood said the increases in contracting prices were “understandable”, reflecting higher costs experienced right across the industry.

“Many businesses are facing cash flow issues despite higher farmgate prices, and above inflation rises such as this explain why confidence and margins remain low for many in the industry,” he said.

The survey values are based on a red diesel price of 70p a litre (without Ad Blue), suggesting a fuel surcharge might be necessary if fuel prices rise, or if the task in question involves white diesel.