The contractor charges guide provides a good base for getting your prices right, says NAAC chairman and Devon agricultural contractor Troy Stuart.

We know that providing the best contracting services to our customers doesn’t always mean being the cheapest.

A good contracting business provides a quality service as well as value for money, but like most contractors we regularly have new competitors come in and undercut us, often at rates below what we could viably do the job for.

Click here to view the contractor pricing tables

There is nothing wrong with a bit of healthy competition, as long as it is based on reality. After all, we were that new guy once and it’s positive that people are entering the industry.

I for one would rather they came in running a professional business and charging sustainable rates rather than running around undercutting everyone, rushing the job, making no money, and dragging us down with them.

It’s not good for the industry, and it’s certainly not good for the customer. If the charges guide helps them start out on the right foot, then I am all for it.

While we always work out our rates based on our costs, it’s handy to know what the national average going rate is. It is reassuring when our rates are about on par with those in the NAAC guide, and it is a useful bargaining tool for both us and our customers.

After all, we know our customers want to make sure they are getting value for money, but we need to be a profitable business too, and the guide helps both sides see what a fair rate is.

As a member of the NAAC we always submit our feedback form before the guide is compiled. Knowing how useful the guide is to all parties, it’s great to know we have had our input and are consulted before the guide is published.

The rates will never be spot-on for everyone, and the cost of a job can vary a lot depending on a variety of factors, but if my customers and I are singing from the same hymn sheet, it makes for a much merrier and longer term relationship.

These tables show the mid prices quoted by members of the National Association of Agricultural Contractors (NAAC). Actual prices may vary considerably between regions, soil types, distance travelled, size of contract undertaken, size and type of equipment used as well as the amount of product applied.

The NAAC is also aware that many contractors are now making individual arrangements with their customers regarding diesel – for example, a separate fuel surcharge, or fuel used on-farm. The prices do not reflect this market trend and such agreements may make a significant difference to contracting charges.

Prices, based on red diesel at 70p/litre, should only be used as a guide.