How can I find a rental rate for a piece of machinery?
Rental rates for some machinery items are shown on the ISU Extension Custom Rate Survey. For items where just the custom rate is reported, a worksheet for estimating rental rates for those items is included at the end of the Custom Rate Survey. The calculations and an example using a Tandem Disk are included below.
| Estimating a Machinery Rental Rate |
Example: Tandem Disk |
|
| 1. Custom charge (includes labor, fuel, tractor) |
$________/acre |
$14.20 |
| 2. Percent of custom charge that is for interest, insurance, depreciation, and repairs (excluding fuel and labor) (use 60% for tillage, 65% for planting and harvesting) |
x ________% |
x 60% |
| 3. Rental value, including tractor (1 x 2) |
= $________/acre |
= $8.52 |
| 4. Tractor rental value, if tractor is not provided:_______HP x $_______per hp-hour rental rate / _______acres/hour =
Ex: 150 HP x $.27 (per hp-hour rental rate) / 15 acres/hour = $2.70 |
– $________/acre |
– $2.70 |
| 5. Implement rental value, without tractor (3 minus 4) |
= $________/acre |
= $5.82/acre |
Ag Decision Maker (AgDM) 
An agricultural economics and business website.
