Iowa farm custom rate survey for 2012 available
Many Iowa farmers hire some custom machine work done in their farm business, or perform custom work for others. Others rent machinery or perform other services. The information in the 2012 Iowa Custom Rate Survey is based on survey responses from 276 Iowa farmers, custom operators and farm managers. For each operation, the average rate and the range reported are shown. Twenty-eight percent of the respondents perform custom work, 11 percent hire work done, and 61 percent indicated doing both.
Values are rates expected to be charged or paid this year, and include tractor, implement, fuel and labor. The average price for diesel fuel was assumed to be $3.25 per gallon. A fuel price increase of $0.50 per gallon will cause total machinery costs to increase by approximately 5 percent. This rate schedule is intended only as a guide. Actual custom rates may vary according to availability of machinery in a given area, timeliness, operator skill, field size and shape, crop conditions, and the performance characteristics of the machine being used.
Rental rates for some machinery items are shown on page 2 of the publication, along with a worksheet for estimating rental rates for other items. Ag Decision Maker website offers a Decision Tool to help custom operators and other farmers estimate their own costs for specific machinery operations. View the 2012 Custom Rate Survey.
An agricultural economics and business web site.