Client Corner: How can I find a rental rate for a piece of machinery?

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


Tandem Disk

1. Custom charge (includes labor, fuel, tractor)



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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Ag Decision Maker text image