Latest Contractor Charges 2019/2020
The NAAC Contracting Charges for 2019 are now available. These are average prices surveyed from NAAC members, the actual price may vary considerably between regions, soil types, distance travelled, size of contract undertaken, size and type of equipment used etc.
Download the results of the survey here: NAAC Contracting Charges Survey 2019
31 May 2019
New NAAC Contracting Prices 2019
New guide contracting prices for 2019/20 have been published by the National Association of Agricultural Contractors (NAAC).
The prices give a national average to help steer contractors and farmers. However, businesses are warned not to rely too heavily on these guide prices as it is important that contractors know their individual costs and are therefore clear what they need to charge to continue to run a viable business.
Annual machinery costs continue to climb, alongside tyres and labour, and it is vital that contracting prices reflect these increases.
Capital investment is now very significant on farms and, to manage cash-flow and depreciation, over 90% of farmers are bringing in the services of a contractor to take some of the investment burden for specialist, high capital cost machinery, alongside the need to bring in skilled labour which is in short supply.
However, contractors must carefully plan and cost their operations to try and ensure a profit margin so they can run a sustainable business. All costs such as downtime, insurance, depreciation, labour, machinery servicing and maintenance must be calculated to try and ensure customers are charged appropriately to maintain a viable business model.
Like every industry, there is fierce competition in the contracting sector which can result in prices being driven down but a successful business, with longevity, is one that costs its operations carefully and refuses to work for less than a realistic price. There is little point being a busy fool, working all hours for little benefit.
Contractors are advised to use the prices as a guide but take into account their own costs, and variations in the types of land, customer size, machinery and scale of the business to work out their charges.
For further information contact:
Jill Hewitt, NAAC Technical Consultant Tel: 07889 511245 email: firstname.lastname@example.org
Issued by: Springtime Consultancy