Should You Own Machinery or Hire a Contractor in 2026?
With new tractor prices at £120,000–£250,000+, finance rates at 5–7%, and red diesel at ~78p/litre, the buy-or-hire decision is one of the biggest financial choices on any UK farm. This calculator builds the full cost picture on both sides so you can make it with confidence.
What the calculator includes
The owned cost covers straight-line depreciation (purchase price minus salvage value over working life), annual maintenance, labour at your specified rate, and fuel. Where a machine does multiple jobs, you enter total annual use so only the proportional cost is attributed to this task. The contractor cost is simply your quoted rate multiplied by area.
Frequently Asked Questions
- What break-even usage makes owning cheaper?
- For a £120k tractor doing multiple jobs, typically 800–1200 hours per year. Below 600 hours annually, contracting usually wins on pure cost.
- Should I include my own labour?
- Yes – your time has an opportunity cost. £18–£25/hour is a realistic owner-operator rate for most UK farms.
- Can I compare multiple machines?
- Yes. Add all equipment used for the task. The calculator fairly apportions costs when machines work across multiple jobs.
- What counts as a typical contractor rate?
- 2026 UK rates vary by operation. Spraying sits at £18–£28/ha, drilling £50–£70/ha, ploughing £55–£75/ha, and combining £120–£180/ha.