Diesel prices have risen significantly inside the past week, leading agri-contractors to increase their prices ahead of the silage season.

Prices for red diesel had been reasonably static during 2018, at around the 56p/l mark, but since the beginning of the month, rising crude oil prices have filtered down to agri fuel, which has risen to 59.6p/l inclusive of VAT.

It means that prices for red diesel are currently 10p/l higher when compared to May 2017, leaving silage contractors with little option but to increase the price of field work.

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Early indications are that a minimum of £5/ac will be added on to contracting prices this year, with the possibility of a £10/ac increase depending on how much further diesel prices rise in the weeks ahead.

This would put first-cut silage prices around the £65/ac mark for mowing, lifting and buck-raking, while prices would increase to more than £70/ac for silage crops that are tedded out for rapid wilting.

While final prices will depend on the area of silage to cut, how far grass has to be hauled and when payment can be made, the increased costs are on top of the fact that many farmers are facing lower yielding crops this year after the bad spring.

Speaking to contractors, a number also expressed concerns around the difficulty in sourcing labour ahead of the main silage season. In some cases, it could limit the number of trailers they can provide for haulage.

The seasonality and effect of weather on silage harvesting makes it difficult for contractors to guarantee employees a set working week. Also, there are increasing job opportunities in other industries, such as construction, which is taking workers out of the agri-sector.

Bales

Early indications on the costs of making baled silage are that prices will be around £9 to £10 per bale for mowing, baling and plastic included, which is an increase of £1 to £2 per bale on last year.

Tedding and rowing grass will add another £1 to the cost of bales. However, the increase in oil prices has yet to be added on to bale wrap, with prices similar to last year.

Merchant prices are currently £52 to £57 for a 1,500m roll, depending on the manufacturer.