Iowa Farm Custom Rates For 2011

Results of 2011 Iowa Farm Custom Rate Survey are available. They show what the typical custom rate charges are for various farm machinery operations are in Iowa. Many farmers hire some custom work done, or they do custom work for other people.

Published on: May 20, 2011

If you hire custom work done on your farm or do custom work for other farmers, here's a look at the 2013 custom farm rates.

(Originally posted May 20, 2011) The 2011 Iowa Farm Custom Rate Survey results are available. "Many Iowa farmers hire some custom work done for them in their farming business," says William Edwards, Iowa State University Extension economist. "Or, they do custom work for other people. Other farmers rent machinery or do other services."

Each year ISU surveys farmers, custom operators and farm managers to find out what the typical custom rate charges are for different machinery operations in Iowa. The survey results are available online at ISU's Ag Decision Maker website (see below).

Iowa Farm Custom Rates For 2013
Iowa Farm Custom Rates For 2013

Results of the 2011 survey were recently compiled. They followed the recent trend of small, but consistent increases in rates that we've seen each year each year, says Edwards. Most operations showed increases of 3% to 5% over the average rates in the 2010 survey. The average rate for combining corn, the custom operation with the most responses, exceeded $30 per acre for the first time.

Soaring fuel prices causing custom operators to charge more
Fuel prices have soared this winter, causing many custom operators to increase their rates from last year. In the survey, the average price for diesel fuel in 2011 was assumed to be $2.75 per gallon, which was not far off in January, but is below current prices. As a rule of thumb, a $0.50 per gallon increase in the price of fuel will cause total costs for machinery operations to increase about 5 percent.

The values reported on the survey are simply the average of all the responses received for each category. The range of the highest and lowest responses received is also reported. These values are intended only as a guide. There are many reasons why the rate charged in a particular situation should be above or below the average. These include the timeliness with which operations are performed, quality and special features of the machine, operator skill, size and shape of fields, number of acres contracted, and the condition of the crop for harvesting. The availability of custom operators in a given area will also affect rates.

Several new operations and services were included in the 2011 survey, including using seed shut-offs on planters, bagging silage, tedding and swathing hay, and renting a generator.

Ag Decision Maker has "decision tool" to estimate costs
The Ag Decision Maker offers a Decision Tool to help custom operators and other farmers estimate their own costs for specific machinery operations. The Machinery Cost Calculator (File A3-29) can be found under Crops, then Machinery in the Ag Decision Maker table of contents.

The Iowa Farm Custom Rate Survey is available at county extension offices, online as publication FM-1698, from the ISU Extension Online Store, or as Information File A3-10, Iowa Farm Custom Rate Survey, on the Ag Decision Maker website.