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Contractors raise their charges as fuel costs bite Contractors raise their charges as fuel costs bite
Farm contracting charges for individual operations have risen by up to 15 per cent following cost increases caused by the Iran war. Results from... Contractors raise their charges as fuel costs bite

Farm contracting charges for individual operations have risen by up to 15 per cent following cost increases caused by the Iran war.

Results from the latest survey by the National Association of Agricultural Contractors (NAAC) show that prices have generally risen a few per cent higher than 2025 – but some are much higher than others and expected to rise further.

Prices published last month were based on red diesel at 70p per litre and do not include AdBlue. But ongoing instability in the Middle East has seen prices rise much higher, prompting the NAAC to suggest  contractors should add a fuel surcharge.

Fuel pressure

This survey reflects responses from across the UK, so higher and lower rates contribute to an average price. For this reason, all operators are advised to calculate their own costs to ensure they cover overheads.

Contractors can use a costing farm tool developed by The Andersons Centre to calculate actual costs and realistic prices to charge. These may differ significantly from the averages published in this survey.

NAAC chief executive Jill Hewitt said: ‘This year we asked members whether they plan to put up their prices to reflect increasing costs. The average increase is 4.84 per cent, although there was a wide variation of predicted rises from zero to 15 per cent.

“The professional service provided by a contractor remained a high priority, said Ms Hewitt, ensuring landowners and other farming customers could be confident their assets were protected, whether that is cropping, livestock, soil or the environment.

“This comes at a price, and 2026 rates have generally increased to take account of inflation and employment costs. Transparent, well-calculated costs on both sides will help maintain strong partnerships and ensure both parties benefit.”

Prices rose last year by an average of about 5.7 per cent – caused by increases in national insurance and other costs. The variation was similarly wide then too, ranging from 2-12 per cent for individual operations.

Regional variation

The NAAC survey is intended as a guide only, based on responses from its members. Actual charges may vary considerably, said Ms Hewitt. They would depend on region, soil type, distance travelled, size of contract, type of equipment used and the amount of product applied.

Contractors may also have separate arrangements with individual customers regarding fuel. This can include, for example, a separate fuel surcharge, or fuel provided on-farm by the landowner or farmer.