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Research Papers in Economics

 
                         
extension economics report
 
EER 196                                                                    May  2001
2000 Custom Farm Machinery Rates
  clemson university
   cooperative extension service
department of agricultural and
applied economics
clemson university
                     clemson, south carolina 29634
 
Clemson University Cooperative Extension Services offers its programs to people of all ages, regardless of race, color, sex, religion,
national origin, disability, political beliefs, sexual orientation, marital or family status and is an equal opportunity employer.
Clemson University Cooperating with U.S. Department of Agriculture and South Carolina Counties. Issued in Furtherance of Cooperative
Extension Work in Agriculture and Home Economics, Acts of May 8 and June 30, 1914.FORWARD 
 
  This publication was reprinted with the permission of the authors and the 
University of Georgia Cooperative Extension Service.  It is believed this data is relevant 
to South Carolina farmers due to the similarities of farming conditions in the two states. 
  Hopefully, this information can be used by S.C. farmers in providing some 
guideline on normal custom charges for different machinery operations. 
  If you have any questions concerning the data contained in this publication, 
contact Dr. Johnny W. Jordan in the department of Agricultural & Applied Economics at 
Clemson University (864-656-6756).  Thanks to Richard O. Pitts for developing the 
cover and publishing the work. 
 
 
 
 
 
 
 
 
 
 
 
 
 FARM MACHINERY CUSTOOM RATES 
IN GEORGIA, 2000 
 
 
 
Table of Contents 
 
 
Page 
Rate Increases Are Mixed……………………………………………………….         1 
 
Custom Farm Machinery Rates, 2000…………………………………………..         3 
   
  Tillage Operations……………………………………………………….         3 
   
  Planting Operations……………………………………………………..         3 
 
  Apply Chemicals………………………………………………………..         3 
 
  Harvest Operations………………………………………………………            4 
 
  Hauling Crops & Livestock……………………………………………..         4 
 
  Other Operations………………………………………………………...         5 
 
  Aerial Applications……………………………………………………...         5 
 
  Rental Rates For Machinery…………………………………………….         6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 CUSTOM FARM MACHINERY RATES
1 
IN GEORGIA, 2000 
 
This publication reports a summary of custom farm machinery rates that custom 
operators in Georgia indicate they plan to charge in the year 2000. 
 
These rates were obtained from a survey of over 300 operators identified by County 
Extension Agents who perform custom operations.  They were contacted by mail and 
requested to provide the rates they plan to charge for any machinery operation in 2000. 
 
 
Rate Increases Are Mixed 
 
The last survey of this type was conducted two years ago.  While we cannot identify all 
respondents to provide an individual comparison of rates in the two years, many of the 
rates reported are near the level charged in 1998.  This is in contrast to the 1998 survey 
that showed most all-custom rates markedly higher than those of the previous survey in 
1996. 
 
Rate increases were more common for planting jobs, for jobs using large equipment such 
as earthmovers and bulldozers, and for hauling crops and livestock. 
 
Why did they not all increase? 
 
This may best be answered by the comments penned by several respondents to the effect 
of "I'm not covering (or barely covering) all my costs with these rates but farmers can't 
afford to pay more".  Obviously they are referring to low commodity prices and the 
drought that is beginning its third year. 
 
Considerations when reviewing these rates. 
 
1.  We do not know if those responding to the survey were those who replied in 1998.  
While we would expect the rates to be generally the same in a given locality, we are 
not assured of this. 
 
2.  Rates charged for some jobs show little or no change.  A few rates were reported 
higher, and some rates were reported lower that two years earlier.  So overall, custom 
rates are relatively unchanged.   
 
 
AG ECON 91-001R-Revised, June 2000.  Prepared by William Givan, Extension 
Economists, University of Georgia.             
 
 
 
  
 
 
Other Observations About These Rates 
 
To insure confidentiality--rates are not shown for jobs when only one individual 
responded.  Also, the range is not given when only two individuals responded.  Here, 
only the average is given. 
 
Fairness of these rates is not considered.  Rates are often set by: 
 
•  Charging the prevailing rate in a locality, which may have little basis for being 
set.  But charging more than this rate will result in little demand for one's 
work. 
 
•  Work may be done in partial exchange for some other type of work.  Or the 
work may be done for a friend.  Often, the rate is not indicative of costs 
incurred. 
 
•  Operators may do some work after they have completed operations on their 
farm.  These rates may be set to cover fuel and repair costs, and then to 
provide some return to labor and partial payment for machinery overhead 
costs. 
 
As an interview with the respondents is not possible, we cannot determine how different 
individuals may interpret the questions.  But a large number of respondents can help 
overcome any misunderstandings by the reporting of other observations.  Hence, the rates 
are reported statewide rather than by districts, or by counties. 
 
 
Rental Rates for Machinery 
 
This survey obtained only data on custom rates.  But as requests are often received for 
information on equipment rental rates, a summary of these rental rates from a commercial 
vendor are included on page 6. 
 
No reference is given for fairness of these rates, but are provided to give a starting point 
for determining equipment rental rates. 
 
 
 
 
 
 
 
 Operation Unit Responses
Average 
Dollar
Frequent
 Dollar
Range
 Dollar
Plow Acre 9 13.22 15.00 7.00-16.00
Plow Hour 3 30.00 0.00 25.00-35.00
Disk Acre 17 8.68 10.00 4.00-15.00
Disk Hour 7 40.00 30.00 20.00-80.00
Subsoil Acre 12 13.29 10.00 8.00-25.00
Subsoil Hour 4 38.75 30.00 30.00-60.00
Subsoil & Bed Acre 8 10.62 10.00 10.00-12.00
Sweep Cultivator Acre 5 6.60 0.00 5.00-8.00
Rotary Hoe Acre 3 5.83 0.00 3.50-10.00
Drag Harrow Acre 4 9.75 0.00 8.00-12.00
Chisel Plow Acre 9 11.61 12.00 8.00-17.50
Chisel Plow Hour 3 40.00 30.00 30.00-60.00
Operation Unit Responses
Average 
Dollar
Frequent
 Dollar
Range
 Dollar
Drill Small Grain Acre 12 9.25 0.00 4.00-17.00
No-Till Drill Acre 12 15.54 15.00 9.00-25.00
Plant Corn Acre 12 14.12 15.00 5.00-25.00
Plant Soybeans Acre 9 11.50 0.00 5.00-17.50
Plant Cotton Acre 13 13.87 0.00 5.00-25.00
No-Till, Plant Acre 7 14.29 0.00 9.00-25.00
Strip-Till, Plant Acre 14 16.93 0.00 8.00-25.00
Sprig Bermuda -incl. Sprigs Acre 2 87.50 0.00 0.00
Plant Pine Trees Acre 8 39.12 35.00 28.00-50.00
Operation Unit Responses
Average 
Dollar
Frequent
 Dollar
Range
 Dollar
Bulk Dry Acre 13 3.92 3.50 3.25-5.00
Bulk Dry Ton 4 22.37 0.00 15.00-30.00
Liquid Acre 8 4.91 4.50 3.50-10.00
Spread Lime Acre 10 4.80 4.00 3.50-10.00
Spread Lime Ton 4 6.50 0.00 3.50-10.00
Direct Acre 12 5.96 0.00 3.00-15.00
Cut-In Acre 4 7.50 0.00 4.00-10.00
Apply Insecticides & Fungicides Acre 7 4.21 0.00 3.00-6.50
Apply Chemicals
Apply Herbicides:
Custom Farm Machinery Rates 
Georgia, 2000
Planting Operations
Tillage Operations
Spreading Fertilizer:Operation Unit Responses
Average 
Dollar
Frequent
 Dollar
Range
 Dollar
Hauling Not Included Acre 12 56.17 0.00 50.00-65.00
Charge Per Pound Pound 16 0.08 0.09 .07-.09
Minimum Charge Acre 8 53.50 50.00 50.00-65.00
Build Module Pound 7 0.01 0.01 .005-.01
Build Module Bale 2 5.00 0.00 0.00
Shake Pecan Trees Tree 2 4.50 0.00 0.00
Corn Dryland Acre 15 24.53 25.00 15.00-35.00
Corn Irrigated Acre 16 27.37 25.00 22.00-35.00
Soybeans Acre 12 25.58 25.00 22.00-30.00
Corn Dryland Acre 2 32.50 0.00 0.00
Soybeans Acre 4 30.00 0.00 20.00-40.00
Dig Peanuts Acre 11 17.50 15.00 12.50-25.00
Combine Peanuts Acre 12 39.37 30.00 30.00-65.00
Combine Peanuts Ton 2 30.00 0.00 0.00
Dig & Combine Peanuts Acre 8 52.50 50.00 40.00-65.00
Dig-Combine & Haul Peanuts Acre 5 62.00 60.00 55.00-70.00
Mow Hay Acre 3 9.67 0.00 5.00-15.00
Mow Hay Hour 3 40.00 35.00 35.00-50.00
Rake Hay Acre 2 4.25 0.00 0.00
Bale Hay Sq. Bale 9 0.74 0.00 .45-1.00
Mow, Rake, Bale Sq. Bale 11 1.04 1.00 .75-1.50
Mow, Rake, Bale, Haul Hay Sq. Bale 6 1.29 0.00 .35-1.75
Mow Hay Rnd. Bale 7 4.86 4.00 4.00-7.00
Rake Hay Rnd. Bale 8 2.63 0.00 1.00-5.00
Bale Rnd. Bale 10 6.58 6.00 4.00-8.00
Mow, Rake, Bale Rnd. Bale 13 11.88 10.00 9.00-15.00
Mow, Rake, Bale, Haul Rnd. Bale 8 15.75 18.00 15.00-18.00
Bale Rnd. Bale 5 10.40 0.00 9.00-12.00
Mow, Rake, Bale Rnd. Bale 7 14.71 15.00 12.00-18.00
Operation Unit Responses
Average 
Dollar
Frequent
 Dollar
Range
 Dollar
Haul Grains & Oilseeds less
than 20 miles Bushel 6 0.13 0.10 .10-.15
Haul Grains & Soybeans more 
than 20 miles Bushel 3 0.25 0.00 .20-.30
Haul Grains  & Soybeans Loaded Mile 2 1.25 0.00 0.00
Haul  Livestock Loaded Mile 5 1.70 1.50 1.5-2.00
Haul Hay Loaded Mile 2 1.50 0.00 0.00
Hauling Crops & Livestock
Harvest Operations
Custom Farm Machinery Rates 
Georgia, 2000
Pick Cotton:
Combining:  Hauling Not Included
Combining: Hauling Included
1,000 lb. Bales:
1,200 lb. Bales:Operation Unit Responses
Average 
Dollar
Frequent
 Dollar
Range
 Dollar
Bush Hog Acre 7 12.14 0.00 5.00-16.00
Bush Hog Hour 9 32.22 30.00 15.00-65.00
Chop Stalks Acre 3 9.17 0.00 5.00-15.00
Bulldozing-All Hour 18 62.50 65.00 35.00-90.00
D6 Hour 3 65.00 0.00 60.00-70.00
D7 Hour 2 90.00 0.00 0.00
450 JD Hour 9 61.25 65.00 50.00-80.00
Land Grading Hour 5 65.00 50.00 50.00-90.00
Building Ponds Hour 4 72.50 0.00 50.00-95.00
Remove, Haul, Spread, 
Poultry Litter Ton 2 6.00 0.00 0.00
Barbed Wire;  5-Strands Linear Foot 3 1.50 0.00 1.10-7.75
Woven Wire Linear Foot 2 2.50 0.00 0.00
Operation Unit Responses
Average 
Dollar
Frequent
 Dollar
Range
 Dollar
1 Gallon Acre 8 3.12 3.00 2.45-4.00
3 Gallons Acre 14 3.62 4.00 3.00-4.50
5 Gallons Acre 4 4.37 5.00 4.00-5.00
3 Gallons Acre 8 3.81 4.00 3.25-4.50
5 Gallons Acre 13 4.31 4.00 3.50-5.25
Defoliation Acre 14 4.14 4.00 3.25-5.50
Seeding Pound 5 0.06 0.05 .05-.07
Apply Fertilizer Pound 6 0.06 0.05 .05-.07
Other Operations
Custom Farm Machinery Rates 
Georgia, 2000
Insecticide Applications:
Building Fence Includes Materials:
Aerial ApplicationsItem
160 h.p.
130-159 h.p.
90-129 h.p.
60-89 h.p.
Dry Fertilizer Spreader
Tractor Loader
Hay Conditioner
Platform Head
Corn Head
Trailer Sprayer
Stalk Shredder, pto
High-Boy Sprayer
No-Till Grain Drill
No-Till Planter
Rental Rates for Machinery
in Southern U.S., 1999 -- (No Labor or Fuel)
Rental Rate
Tractors:
Unit
Hour
Hour
Hour
Hour
$35.00
$30.00
$25.00
$20.00
Self Propelled Combine w/:
Acre
Hour
Acre
$4.00
$25.00
$7.00
Acre
Acre
$25.00
$25.00
Hour
$5.00
$6.50
$5.00
$9.50
$10.00
Acre
Acre
Acre
Hour
*Source:  Doane's Agricultural Report, May 19, 2000.

2000 Custom Farm Machinery Rates

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