2 September 2010
NAAC CONTRACTORS’ CHARGES FOR 2010/11
As input prices have soared and the cost of fuel has doubled over the last five years, with machinery prices also
climbing steeply, I look back at our annual contracting prices over the same timescale and see our customers continue
to get a good deal.
Whilst most prices have held from last year, many are equally not keeping pace with the relevant input costs.
In theory as fuel has doubled over the last five years, our prices should have followed a similar trend... needless to
say we are still way off target.
Tough competition keeps prices at a level not always economical (never mind profitable) and it is a brave man that
stands tall, works out the right price and then stands by it despite local undercutting. Whilst this may be good news
for the customer short-term, in the longer term it makes little sense.
Those who cut financial corners inevitably struggle with machinery maintenance, never mind upgrading machines to keep
pace with the latest technology. As things get tight health and safety is also likely to be put to one side to get the
job done. All serious concerns to the farmer needing to get his land cultivated professionally, whilst not taking risks
with liability.
However, probably the vital question to probe on if you think you are getting an ‘amazing’ deal is insurance.
A good contractor is likely to have to spend many thousands on insurance to protect his own business and his customers.
A contractor in it for the short-term may offer no protection if things go wrong.
Scaremongering I hear you cry....after all what is wrong with a little healthy competition?
Nothing of course, provided those offering the cheap deals (who are unlikely to survive more than a year or two) do
not jeopardise those professionals meeting industry and legal standards. That benefits neither the contractor nor the
customer.
Whilst I will always spring to the defence of this remarkable sector of our industry, with an amazing front-running
group of professionals working bravely and fearlessly to carefully calculated costings, I ask you to spare a thought
for your local contractor. He most likely knows what he should be charging, yet is squeezed to within an inch of his
profit margin to meet legal standards and protect your business, whilst making sure you get the professional service
your crop deserves.
When he quotes you a price please try, just for a moment, to reflect on the benefits of employing a professional.
Think hard about your crop, your profit margins and the vital importance of getting this job done well.
Then reflect on how the chap down the road can offer to do it pounds cheaper per acre. How is it possible?
A miracle?
Sadly miracles are few are far between in farming and it is more likely cutting corners, which may cost you dearly
in the long run.
Click here to see the 2010/11 Contracting Charges