Red diesel prices have continued to increase throughout June, with the most recent price quote of 61.51p/l obtained midweek.

When VAT is applied, this increases diesel prices to 64.58p/l.

Current diesel prices are 16p/l higher than the corresponding period in June 2017, when farmers were paying 45.55p/l excluding VAT. In June 2016, the price averaged 44.58p/l excluding VAT.

It means red diesel is at its highest level since mid-September 2014. The increase is mainly a direct result of higher crude oil prices.

While diesel prices have been increasing on the back of higher oil prices, it appears that prices for plastic bale wrap remain static.

New stocks of plastic are selling from £53 to £58 per 1,500m roll, which is generally unchanged from prices quoted in May.

Price deals are available for bulk purchases.

Contractor costs

Indications are that contractor costs for second-cut silage will most likely be priced over £60 per acre which includes mowing, raking, harvesting and buck-raking.

Tedding grass will add £5/ac to costs, with crops that require additional trailers due to longer haulage distances increasing costs.