Have you worked out how much your pit silage is going to cost this year?
Have you worked out how much your pit silage is going to cost this year? The final cost will be strongly linked to diesel prices and contractor charges.
This week at the pumps, farmers and contractors are paying on average €780, including VAT, per thousand litres of agri diesel. Compared to last summer, the price of diesel has increased by five per cent, when one thousand litres of diesel cost €750, including VAT.
In general, farmers can expect to see the higher fuel prices passed on in contractor charges, so they should be budgeting appropriately. The Farm Contractors Association of Ireland (FCI) say precision-chop silage will be guide-priced at €115 plus VAT into the pit.
It's important to remember that farmers can often avail of slightly cheaper rates from their contractor for upfront payment for works done. Not everyone can afford to pay upfront, but if you can, it is often worthwhile as most contractors offer a discount.
It can be possible to knock €10 an acre off the quoted price if the farmer pays the contractor at the gate.
If you have 50 acres of silage, that comes to a €500 saving.
For farmers, an important tip is to walk your silage ground before letting the contractor on site. This really is in your own interests because many contractors are using self-propelled mowers and harvesters worth north of €250,000.
Stray objects like fencing posts or wire can cause huge damage and will lead to added bills for breakdowns.