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'Machinery costs are not static' - contractor price hikes 'inevitable'

According to the NAAC, despite minor rises in its latest contractor pricing guide, larger increase are inevitable.

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As costs rise, the NAAC says contractors are starting to feel the pinch.

Rising input costs will see the cost of agricultural contracting services climb in coming months.

 

According to the National Association of Agricultural Contractors (NAAC), which has just released its 2017/2018 contractor price guide, while prices have not risen significantly since last year, the time is coming that increases are inevitable.

 

The association’s chief executive Duncan Russell said: “We are seeing rapidly increasing machinery purchasing costs, alongside hikes in spare parts and tyres, which simply cannot continue to be absorbed by the contracting sector. Farming customers are demanding the latest kit, fitted out in many cases with technology to assist them in decision-making and precision application, which all costs.

 

“While contractors like to work with their customers to provide the professional service they require, this needs to become a closer partnership to allow contractors to make the massive investment in capital costs required to purchase and maintain multi-million pound fleets of machinery.”

 

NAAC chairman and contractor Martin Hays said: “Machinery costs are not static, so neither should our charges be. While we may be doing OK this year, when it comes to upgrading or trading machines and tractors in coming months and years we may easily find our costs have fallen behind and we cannot make up the shortfall.

 

“Farmers will have the same problems and we must work together so contractors can make those long-term investments to keep the farming industry sustainable.”

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