Results of a survey of custom rates paid or charged for a large number of tillage, planting, harvesting and miscellaneous operations are presented.

Edwards, William M.

English

Research Papers in Economics

2004 Iowa Farm Custom Rate Survey
                                                                                          
     Many Iowa farmers hire some custom machine work in their Harvesting Grain Average Range
farm business, or perform custom work for others.  Others rent     Corn combining, / acre $24.15 19.00       - 30.00     
machinery or perform other services.  The information below is     Soybean combining, / acre 23.40      19.00       - 29.00     
based on a survey of 204 Iowa farmers, custom operators, and     Small grain combining, / acre 21.85      20.00       - 25.00     
farm managers.  For each operation, the average rate from the     Picking ear corn, / acre (seed corn) 28.70      25.00       - 34.00     
survey and the range are shown.  Thirty-three percent of the     Picking ear corn, / acre 20.50      18.00       - 22.00     
respondents perform custom work,18 percent hire work     Drying corn (without fuel,labor)
done, and 48 percent indicated doing both.         - continuous flow dryer, / dry bu. 0.088      0.080       - 0.100     
     Values below are rates expected to be charged or paid,          - continuous flow dryer, / point 0.027      0.020       - 0.030     
including fuel and labor.  This rate schedule is intended only as         - bin dryer, /  dry bu. 0.097      0.095       - 0.100     
a guide.  Actual custom rates may vary according to availability          - bin dryer, / point 0.029      0.023       - 0.030     
of machinery in a given area, timeliness, operator skill, field size         - bin dryer, / dry bu.(no fuel or labor) 0.068      0.050       - 0.100     
and shape, crop conditions, and the performance characteris-     Handling grain (by auger), / bu. 0.047      0.005       - 0.100     
tics of the machine being used.  Machinery rental rates can be     Hauling grain, on-farm, wagon / bu. 0.054      0.020       - 0.100     
estimated on the back.     Hauling grain to mkt., wagon, / bu. 0.063      0.040       - 0.120     
    Hauling grain to mkt., truck, / bu. 0.083      0.040       - 0.125     
Tillage Average   Range    Hauling  to mkt., truck,/ bu. /mile (1-way) 0.041      0.010     - 0.100   
    Chopping cornstalks, / acre $7.15 5.00       - 10.00       Hauling grain in field, grain cart, / acre 4.60        2.00       - 8.00     
    Plowing - moldboard, / acre 11.95      8.50       - 15.00          Storing grain, / bu., / month 0.023      0.010       - 0.050     
-  chisel, / acre 10.70      8.00       - 13.00          Storing grain, / bu., / year 0.117      0.080       - 0.177     
    Disk-chiseling, / acre 11.20      10.00     - 13.00     
    Subsoiling (8 to 15 in. deep), / a. 12.70      8.00       - 16.50    Harvesting Forages
    V-ripper/ (over 15 in. deep), / acre 14.10      10.00     - 22.00          Hay - mowing, / acre $7.00 5.00         - 10.00     
    V-ripper/ with tandem disk, / acre 13.90      11.00     - 20.00                  - mowing/conditioning, / acre 9.10        5.00         - 12.00     
    Disking- tandem, / acre 8.10        5.00       - 12.00                  - raking, / acre 4.20        2.00         - 6.00       
- offset, / acre 9.25        6.00       - 10.30                  - windrowing, / acre 9.60        8.00         - 10.00     
    Harrowing, / acre 4.55        3.50       - 6.00                    - mowing CRP acres, / acre 8.75        5.00         - 13.00     
    Soil finishing, / acre 8.40        6.00       - 10.00                  - mowing fence rows, ditches, /hr. 44.35      20.00       - 80.00     
    Field cultivating, / acre 7.60        4.50       - 11.00          Hay baling -  small square, / bale 0.40        0.30         - 0.50       
    Cultivating, / acre 6.65        4.50       - 10.00      -  large square, / bale 8.10        6.50         - 11.00     
    Cultivating, ridge-till, / acre 9.80        8.00       - 13.00      -  large round, / bale 7.75        5.00         - 10.00     
    Rotary hoeing, / acre 5.10        3.50       - 7.00        -  extra for plastic wrap, /bale 1.55        1.00         - 2.00       
Planting -  stack, 1 ton, / stack 11.10      10.00     - 12.00   
    Planter - w/ fert & insect. attach., / a. $11.60 7.50       - 15.00      -  stack, 3 ton, / stack 23.20      15.00       - 25.00     
                - without attachments, / acre 10.55      7.00       - 15.00          Hay baling & storing, square, / bale 0.57        0.55         - 0.60       
                - with splitters, / acre 12.85      8.50       - 18.00          Straw or corn stalk baling, large round 8.95        5.50         - 12.00     
                - no-till planter, / acre 12.10      8.00       - 16.00          Wrapping round bales with net, / bale 2.05        1.00         - 3.00       
                - ridge till planter, / acre 12.35      10.00     - 13.20          Silage - chopping, / acre 44.75      40.00       - 50.00     
    Soybean drill, / acre 11.10      7.00       - 14.00            - chopping, / hr., / row 31.90      28.35       - 36.65     
    No-till soybean drill, / acre 12.55      10.00     - 15.00            - chop, haul, fill upright silo, /hr, /row 36.40      30.00       - 39.35     
    Grain drill, / acre 9.65        7.00       - 12.00            - chop, haul, fill trench silo, /hr, /row 42.10      33.00       - 45.00     
    No-till grass seed drill, / acre 12.70      10.00     - 15.00          Haylage - chopping, /acre 65.15      60.00       - 70.00     
    Broadcast grass seeder, / acre 6.30        5.00       - 8.00              - chopping, per hr., 7 foot header 70.10      60.00       - 75.00     
Fertilizer Application (materials not included)      - chopping, hauling, filling silo, / hr. 82.50      75.00     - 100.00
    Dry bulk - applied, /acre $3.20 1.50       - 5.00      Machine Rental  (operator, tractor, and fuel not included)
-  applicator rent only, / acre 1.60        1.00       - 2.00            Tractor, / horsepower, / hour $0.20 0.15         - 0.35       
    Liquid -  applied, / acre 4.70        3.00       - 6.00            Grain drill, / acre 7.35        6.00         - 8.00       
-  applicator rent only, / acre 2.10        1.32       - 3.00            No-till soybean drill, / acre 8.85        7.00         - 10.00     
-  strip-till, knifed, / acre 6.80        6.00       - 7.75            Grain wagon, / bu. 0.05        0.02         - 0.06       
    Anhydrous-  applied, / acre 6.70        4.00       - 9.00            Grain auger, / bu. 0.02        0.01         - 0.03       
-  applicator rent only, / acre 1.65        1.00       - 3.00            Grain cart with auger, / bu. 0.05        0.02         - 0.08       
    Spreading lime, / ton 4.75        2.50       - 9.00            Grain vacuum, / bu. 0.06        0.04         - 0.12       
Spraying (materials not included)    Grain cleaner, / bu. 0.04        0.03       - 0.07     
    Ground, broadcast, / acre $4.75 3.00       - 6.50            Liquid manure spreader, / hour 19.15      15.00       - 20.40     
    Ground, incorporated, / acre 8.65        7.50       - 9.75            Solid manure spreader, / hour 18.80      18.00       - 20.00     
    Ground, banded, / acre 5.00        4.00       - 6.00            Skid loader, / hour 36.20      24.00       - 55.00     
    Rope wick applicator, / acre 4.75        4.50       - 5.00            Silage wagon, / hour 8.05        7.00         - 10.00     
    Bean buggy, (without riders) / acre 4.05        2.00       - 5.00            Power washer, / hour 18.30      12.00       - 22.00     
    Aerial, / acre 5.95        5.00       - 7.10            Tub grinder, / hour 125.90    100.00     - 180.00   
    Ground, road ditches, / hour 38.75      25.00     - 55.00          Brush chopper, / acre 8.45        8.00         - 10.00     
FM-1698 | Revised | March 2004Miscellaneous Services Average Range Average Range
   Moving round bales, / bale $2.80 2.00       - 3.50            Bulldozing, / hr. / ft. of blade $8.80 6.50         - 13.00     
   Moving round bales by truck, / mile $1.75 1.00       - 2.25            Digging post holes, / hole 2.95        1.25         - 6.00       
   Removing snow (loader), / hr. 50.40      20.00     - 85.00          Building terraces, / foot 1.40        1.00         - 2.50       
   Removing snow (blade), / hr. 53.80      30.00     - 85.00          Trenching, / foot 0.70        0.35         - 1.00       
   Removing snow (blower), / hr. 66.10      20.00     - 100.00        Tiling (excluding materials), / rod 8.55        3.80         - 15.00     
   Grinding, mixing feed, / ton 8.55        6.00       - 15.00          Back hoeing, / hour 57.75      35.00       - 75.00     
   Spreading liq. manure, broadcast, /hr 30.75      30.00     - 33.10          Chopping brush, / acre 12.30      10.00       - 14.00     
   Spreading liq. manure, inject., /1000 gal. 8.40        8.00       - 9.25            Cleaning seed, / bu. 0.55        0.40         - 0.65       
   Loading solid manure, / hour 46.75      35.00     - 60.00          Shearing sheep, / head 2.35        1.40         - 2.75       
   Loading, spreading solid manure, / hr. 72.40      50.00     - 100.00        Scouting crops, / acre 3.50        2.00         - 5.00       
   Building fence, / hour (no materials) 12.90      8.50       - 17.50          Soil testing, / sample 5.90        3.00         - 9.00       
   Building fence, / rod (no materials) 7.10        6.00       - 8.00            GPS grid soil testing,  / acre 6.50        4.00         - 10.00     
   Hauling livestock, truck or trailer / mile 1.85        1.50       - 2.00            Rock picking, / acre 13.60      13.00       - 15.00     
   Power washing / hour 21.70      15.00     - 30.00     
Custom Farming - growing and harvesting Farm Labor Wages
    Corn, / acre $75.40 36.00     - 103.00    Machinery operating, / hour $9.15 7.00       - 13.00   
    Soybeans, / acre 68.85      38.00     - 95.00   
    Small grain, / acre 53.65      45.00     - 60.00     
Average 2004 Farm Custom Rates, by Area
The table below shows average custom rates reported for some common operations in different areas of the state.  Not enough
responses were received for other operations to provide reliable estimates.
Operation Northwest Northeast Southwest Southeast
    Chisel plow $10.95 $10.65 $10.90 $10.10
    Moldboard plow 11.90      11.50      11.65             12.70     
    Tandem disk 7.85        8.10        8.50               7.80       
    Field cultivate 7.40        7.40        7.85               7.95       
    Plant, with attachments 10.65      12.05      11.65             11.90     
    Cultivate, conventional 6.65        6.50        6.65               7.10       
    Spray, ground, broadcast 4.40        4.55        4.60               4.65       
    Combine corn 23.40      24.00      23.90             24.50     
    Combine soybeans 22.50      23.70      22.85             23.80     
    Combine small grain 20.35      21.55      21.10             23.10     
    Square baling, / bale 0.39        0.39        0.37               0.43       
    Round baling, / bale 8.10        7.75        7.30               7.65       
    Machinery labor, / hour 9.35        8.80        8.65               9.45       
Estimating Machinery Rental Rates
1.  Custom charge (includes labor, fuel, tractor) $_______/acre
2.  Percent of custom charge which is for interest, insurance, $_______%
     depreciation, and repairs (excluding fuel and labor) ________ %
     (use 70% for tillage, 80% for planting and harvesting)
3.  Rental value, including tractor (1 x 2) $_______/acre
4.  Tractor rental value, if tractor is not provided:
    _______HP x $_______/ hp-hour rental rate / _______acres/hour = $_______/acre
    (See Pm-696, "Estimating Field Capacity of Farm Machines.")
5.  Implement rental value, without tractor (3 minus 4) $_______/acre
Prepared by William Edwards, extension economist and Darnell Smith, extension associate. 
File:  Economics 1 - 1
 . . . and justice for all                                                                                      
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2004 Iowa Farm Custom Rate Survey

http://www.econ.iastate.edu/sites/default/files/publications/papers/p7192-2003-03-01.pdf

2004 Iowa Farm Custom Rate Survey

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