The NAAC recently published its contracting price guide for 2018, but has put out a stark warning that businesses cannot afford to be complacent and simply rely on these national averages.
The cost of every operation varies according to soil type, condition and customer size – as well as the machinery and scale of the business – so it is vital that contractors really get to grips with what each job costs them to perform before working out their charges.
Equally, with an estimated 91% of farmers using a contractor, the NAAC insists that its guide prices should not be seen as a tool to beat contractor prices down but as a national average to assist the industry in making sound business decisions for both contractors and farmers.
Read and download: NAAC Contracting Charges Guide 2018
This year’s guide is based on 50p/litre for red diesel, but the price has already shot up to nearer 60p/litre. This needs to be taken into account, said Mr Baker.
“While this may appear to be scaremongering, it should be considered that labour, insurance, maintenance and servicing costs are also continuing to rise and it is no longer possible for contractors and their customers to bury their heads in the sand,” he added.
“The industry needs to work together to ensure the contracting sector can run professional, safe and efficient operations, providing skilled labour, specialised machinery and professional services to land owners in a post-Brexit era.”