Contractor price hikes to pile pressure on farmers

Rising insurance and labour costs blamed as contractors claim they are owed over €60m

FARMERS face higher contractor bills this year, with guided prices due to rise by 5pc across the board.

Rising insurance premiums and increased labour costs are being cited by the Farm Contractors of Ireland (FCI) as the reasons behind the price hikes.

And it has warned that contractors cannot act as “unofficial bankers” to farmers in the form of long-term, extended credit on contracting bills.

Some contractors are still chasing outstanding debt from 2019 and the FCI is encouraging its members to charge interest on overdue accounts.

And while the FCI is quoting a 5pc rise in charges across the board, a spokesperson said silage rates have increased by larger amounts following detailed consultations with members and advice from their financial advisors.

The FCI estimates that level of longterm debt owed to contractors is in excess of €60m.

Guide prices for contractors for 2020 include:

Baling, wrapping and stacking at €11-12/bale excluding the cost of plastic;

Silage harvesting at €130/ac into the pit, up from €115/ac last year;

Muck spreading starting at €50/hr and slurry spreading starting at €45/hr

Hedge cutting rising from €47/ hour to €50-55/hour,

Tractor hire up from €45/hour to €50-52/hr.

All prices quoted are exclusive of VAT at 13.5pc.

Commenting on the new charges, one Cork-based contractor and FCI member said it could be difficult to secure some of the rates being quoted.

But he added that price increases were necessary in light of rising labour, machinery parts, fuel and insurance costs for contractors. “Labour and machinery parts are gone incredibly expensive,” he said.