Farmers should expect to pay £10/bale for contractors to bale and wrap silage this summer.

After speaking to contractors across the country, The Scottish Farmer understands that charges are rising by at least £2/bale due to the rising price of plastic and diesel.

The price of wrap has jumped from £55/roll to £80/roll in the last 12 months, putting the cost per bale up by £1.50/bale for three layers. Net has also jumped by 20p/bale. This is pushing many contractors to charge £9.50/bale for baling and wrapping, with the farmer providing the diesel.

But if contractors have to use their own diesel it will add more onto the price of a bale of silage. Diesel is now costing over £1/litre on farm from 60p/litre last year. A single bale can use between 0.4 to 0.5 litres of diesel which means the rise in cost adds on another 20p/bale. Moving and stacking bales will also see an increase with prices between £1 to £1.50/bale depending on distance from field to where the bales will be stored.

Cameron MacIver, who farms at Wester Coltfield, Kinloss, has been calculating the cost of his second cut silage. He said: “This is a back of a fag packet calculation, but I’d imagine the costs should end up with 10% of how much we spend this year. Unless we have a very dry year here in Moray.

“I was priced a second cut fertiliser at £850/t, silage wrap at £72.50/roll and diesel at £1/litre. I then worked out the cost of mowing, turning, baling and wrapping. Plus a loader in the field and a loader in the farm yard loading the wrapper. This worked out at £36.84/bale based on a yield of eight bales per acre. But here in Moray in a dry year the number of bales can plummet to four if we don’t get the rain.

“We usually get our silage with a dry matter of 25-30% and an ME of 12. We aim to get 20 bales per acres across the two cuts on 20 acres of silage ground. The feed will be eaten by our herd of 30 pedigree Simmental cows over winter.”

This week silage bales were averaging £22.57/bale at Thainstone mart and hay was selling to £25/bale at Carlisle mart. At these prices if any farmers have a silage pit unopened, they will be tempted to feed bought in fodder and save their reserves for next winter.

James Bannister, chairman of the National Association of Agricultural Contractors stated: "As fuel prices double and continue to climb, machinery costs spiral and labour remains at a premium for skilled operators, it will no longer be possible for agricultural contractors to retain static prices. Looking at the escalation in input costs professional contractors will have no choice but to increase costs to sustain their own businesses.

"Contractors are always trying to find the right balance to retain a loyal customer base, whilst keeping pace with rising inflation, but offering the cheapest service is now a clear road to heading out of the industry," he said. "Machinery replacement costs and keeping good labour were already causing a massive headache for contractors, before the current fuel hikes. In the last few days red diesel prices have leapt from 80ppl to well over a pound and climbing, with fuel getting harder to source.

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NAAC chief executive Jill Hewitt said: "Only the foolish will try and cling to stationary prices this spring, as any contractor that understands their own costs will recognise that price increases are vital to keep pace, earn a living and retain some stability and longevity in their business.

"Many farmers now rely on their contractor to take on roles that they may no longer have the labour, skills or machinery to complete – but contractors cannot be expected to bankroll their customers and the industry must brace itself for price rises.

"The expectations on contractors continue to escalate. Environmental protection, specialist training, record keeping and having the latest technology on board, all require a new level of expertise and equipment. However, it is currently the costs of the basics that are forcing tough decisions."