Iowa Farm Custom Rate Survey

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2019 Iowa Farm Custom Rate Survey

Ag Decision Maker

File A3-10

Many Iowa farmers hire some custom machine work in their farm business or perform custom work for others. Others rent machinery or perform other services. The Iowa Farm Custom Rate Survey was mailed to 349 people by the U.S. Postal Service and 183 people via e-mail in early February 2019. The information below is based on 121 responses and 3,716 custom rates provided by Iowa farmers, custom operators, and farm managers. Twenty percent of the respondents perform custom work, 10 percent hire work done, 47 percent indicated doing both, 2 percent indicated doing none, and 21 percent did not indicate whether they perform or hire custom work.

For each type of work, the average rate from the survey, the median, and the range are shown. The average is calculated as the simple average of all responses. The median is the middle number among the ordered responses (from smallest to largest). The reported range excludes the minimum and the maximum values to avoid reporting extreme values.

The reported rates are expected to be charged or paid in 2019, and they include fuel and labor (unless otherwise noted). The average price for diesel fuel was assumed to be $2.94 per gallon. 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

Preharvest Operations Harvesting, Hauling Harvesting Forages Complete Custom Farming Labor Miscellaneous

Bin, Machinery Rental

the performance characteristics of the machine being used. Rental rates for some machinery items are shown in the last section of this report, along with a worksheet for estimating rental rates for other items.

Note: All rates include fuel, repairs, depreciation, interest, labor, and all other machinery costs for the tractor and implement, unless otherwise noted.

Percentage change by category, 2018 to 2019

10%

9.4%

9% 8% 7.7% 7.1% 7%

7.7% 6.9%

6%

5% 4%

3.9%

3%

2.7%

2%

1%

0%

Tillage

Chopping cornstalks, / acre Moldboard plowing, / acre Chisel plowing, / acre Disk/chiseling, / acre Vertical tillage, / acre Strip tillage, / acre Subsoiling (8 to 15 in. deep), / acre V-ripping (over 15 in. deep), / acre V-ripping with tandem disk, / acre Disking, tandem, / acre Disking, heavy or offset, / acre Harrowing or dragging, / acre Soil finishing, / acre Field cultivating, / acre Rock picking, / acre Cultivating, conventional, / acre Cultivating, ridge-till, / acre Rotary hoeing, / acre Land rolling, / acre

Average Charge

$12.40 20.20 18.35 19.70 18.55 21.55 22.85 23.45 24.60 15.40 20.10 11.50 15.80 16.00 18.10 14.95 19.25 12.05 8.00

Median Charge

$12.00 20.00 18.00 19.50 18.00 20.00 22.00 23.00 23.55 15.00 20.00 10.85 15.00 15.00 19.00 15.00 19.00 11.25 7.50

Range

Number of Responses

$8.00 - $18.00

38

15.00 - 25.00

19

14.00 - 24.00

28

14.25 - 25.00

35

12.00 - 26.00

43

18.00 - 27.00

16

17.00 - 28.50

29

17.00 - 30.00

22

16.00 - 36.00

40

10.00 - 22.38

47

14.25 - 26.00

19

7.00 - 17.00

20

12.00 - 21.00

39

10.00 - 25.00

55

15.00 - 21.63

14

10.00 - 20.00

14

15.00 - 24.00

10

9.50 - 16.00

21

5.00 - 12.00

31

FM 1698 Revised March 2019

Page 2

2019 Iowa Farm Custom Rate Survey

Planting, Drilling, and Seeding

Average Charge

Planting

- with fertilizer & insecticide attachments, / acre $21.80

- without attachments, / acre

20.40

- with splitters & attachments, / acre

22.30

- with high-speed planter, / acre

22.45

- no-till planter, / acre

22.90

- no-till planter with splitters, / acre

23.85

- ridge till planter, / acre

23.40

Extra charge for seed shut-offs, / acre

2.45

Extra charge for variable rate seeding, / acre

2.65

Extra charge for GPS use, if used for analytics, / acre 2.85

Seed tender, / acre

3.30

Drilling soybeans, / acre

19.10

Drilling soybeans, no-till, / acre

20.60

Drilling grass seed, / acre

19.10

Drilling small grain, / acre

18.35

Seeding grass, broadcast with tractor, / acre

13.55

Seeding grass, broadcast with ATV, / acre

15.80

Median Charge

$21.00 19.50 22.00 22.00 22.00 23.50 24.00 2.00 2.50 2.50 3.00 18.00 20.00 18.00 18.00 14.75 15.00

Range

Number of Responses

$14.00 - $31.00

48

14.25 - 30.00

54

15.00 - 32.75

38

15.00 - 28.00

24

12.60 - 35.00

54

16.90 - 32.00

30

22.00 - 25.00

10

1.00 - 5.00

44

1.00 - 5.00

36

2.00 - 5.00

25

1.00 - 6.00

35

15.00 - 25.35

23

14.00 - 30.00

40

12.50 - 32.00

29

13.00 - 24.63

20

8.00 - 18.00

15

14.00 - 20.00

10

Spraying (materials not included)

Ground, broadcast, tractor, / acre Ground, incorporated, tractor, / acre Ground, broadcast, self propelled, / acre Ground, banded, tractor, / acre Ground, road ditches, / hour Aerial, / acre

Average Charge

$7.25 12.85

7.65 10.80 69.00 10.75

Median Charge

$7.00 12.00

7.50 10.50 75.00 10.00

Range

Number of Responses

$5.50 - $10.70

44

10.00 - 18.00

16

5.00 - 15.00

83

8.00 - 13.50

10

20.00 - 100.00

34

8.00 - 18.00

22

Average

Fertilizer Application (materials not included) Charge

Dry bulk - applied, / acre

$5.80

- strip-till, / acre

16.50

Liquid

- spraying, / acre

7.30

- strip-till, knifed, / acre

14.20

- side dressing, / acre

11.35

Anhydrous - injecting, with tool bar, / acre

12.50

- injecting, without tool bar, / acre

11.40

Spreading lime, / ton

6.25

Median Charge

$6.00 18.00

7.00 14.25 12.00 12.50 11.75

6.00

Number of

Range Responses

$2.50 - $10.00

41

6.00 - 23.00

17

5.00 - 10.00

28

10.00 - 19.00

12

8.00 - 15.00

27

8.00 - 18.00

59

7.00 - 14.00

30

4.00 - 10.00

22

Harvesting, Drying, and Hauling Grain

Average Median Charge Charge

Corn combining, / acre

$35.95

$35.00

- with chopper head, / acre

41.35

39.50

Soybean combining, / acre

35.10

35.00

- with air reel, / acre

37.80

36.25

- with draper head, / acre

38.50

39.00

Small grain combining, / acre

31.90

33.00

Complete harvesting (combine, grain cart, haul to farm storage)

- Corn, / acre

54.10

50.00

- Soybeans, / acre

51.55

50.00

Added charge for GPS mapping, / acre

2.85

3.00

Picking ear corn (seed corn), / acre

35.80

36.00

Picking ear corn (farm use), / acre

32.15

30.00

Range

Number of Responses

$23.00 - $50.00

88

30.00 - 60.00

44

22.00 - 50.00

75

30.00 - 50.00

18

25.00 - 50.00

52

25.00 - 36.00

8

39.00 - 90.00

45

35.00 - 85.00

43

1.00 - 5.00

35

35.00 - 36.00

5

30.00 - 36.00

8

2019 Iowa Farm Custom Rate Survey

Page 3

Harvesting, Drying, and Hauling Grain (cont.)

Drying corn (includes fuel, electricity, labor) - continuous flow dryer, / point per bushel - bin dryer, / point per bushel

Handling grain by auger, / bushel Hauling grain

- grain cart, corn, / acre - grain cart, soybeans, / acre - to farm storage, wagon, / bushel - farm storage to market, wagon, / bushel - to market, truck, (5 miles, 1-way trip), / bu. - to market, truck, (25 miles, 1-way trip), / bu. - to market, truck, (100 miles, 1-way trip), / bu.

Average Charge

$0.046 0.052 0.064

6.55 5.75 0.068 0.086 0.102 0.163 0.317

Median Charge

$0.050 0.050 0.050

6.10 5.50 0.050 0.100 0.100 0.150 0.300

Range

Number of Responses

$0.040 - $0.050

10

0.040 - 0.060

6

0.020 - 0.100

32

1.00 - 12.00

56

1.00 - 11.55

53

0.025 - 0.120

24

0.050 - 0.130

20

0.050 - 0.170

57

0.090 - 0.250

56

0.150 - 0.500

36

Harvesting Forages

Hay - mowing, / acre - conditioning, / acre - mowing/conditioning, / acre - raking, / acre - windrowing, / acre - tedding, / acre

Swathing hay or small grain, / acre Hay baling - small square bales, / bale

- large square bales, / bale - large round bales without wrap, / bale - large round bales with wrap, / bale Straw or corn stalk baling - large round or square bales w/o wrap, / bale - large round or square bales with wrap, / bale Moving large round bales to storage, / bale Hauling rd bales by truck or trailer, / bale, / loaded mile Silage - chopping, / hour, / head row - chopping, / ton - chopping, haul, fill silo, / hour, / head row Filling silage bags, / foot of bag Haylage - chopping, / ton Earlage or snaplage - chopping, / acre

Average Charge

$13.70 12.60 15.30 7.40 15.40 7.85 15.80 0.68 10.95 12.35 13.05

12.35 13.60

2.65 0.24 54.05 6.75 67.90 11.65 8.40 65.15

Median Charge

$15.00 12.25 15.00 7.40 15.00 8.00 15.00 0.75 10.00 12.90 13.00

12.50 13.50

2.50 0.25 62.50 6.50 80.00 12.25 8.00 66.50

Number of

Range Responses

$10.00 - $15.50

14

12.00 - 14.00

6

14.00 - 20.00

23

5.00 - 11.00

18

15.00 - 16.00

8

5.50 - 10.00

7

15.00 - 16.00

5

0.50 - 0.80

17

8.50 - 13.00

10

9.00 - 15.00

16

11.00 - 15.00

31

9.00 - 15.00

10

11.00 - 15.00

26

2.00 - 3.00

8

0.17 - 0.29

6

41.67 - 70.00

5

5.50 - 8.00

8

43.33 - 81.25

5

8.00 - 15.00

8

8.00 - 9.00

5

55.00 - 70.00

8

Custom Farming (tillage, planting, pest control, harvesting, and hauling to farm, no drying)

Corn, / acre Soybeans, / acre Small grain, / acre

Average Charge

$132.25 121.20 118.35

Median Charge

$130.00 117.50 120.00

Number of

Range Responses

$80.00 - $225.00

45

75.00 - 210.25

44

100.00 - 140.00

9

Farm Labor Wages for Operating Machinery

Spraying or harvesting, / hour Other operations, / hour

Average Charge

$19.00 17.20

Median Charge

$18.00 15.50

Number of

Range Responses

$14.00 - $30.00

70

12.00 - 30.00

80

Page 4

2019 Iowa Farm Custom Rate Survey

Miscellaneous Services (labor, fuel, and equipment included)

Removing snow (loader), / hour Removing snow (blade), / hour / foot of blade Removing snow (blower), / hour / foot of blower Tub grinding hay, / ton Spreading liquid manure, injected, / 1000 gal. Applying liquid manure w/ drag line, / 1000 gal. Loading solid manure, / hour Loading, spreading solid manure, / ton Loading, spreading solid manure, / hour Power washing, / hour Building fence, barbed (no materials), / hour Building fence, barbed (no materials), / rod Scouting crops, / acre Scouting crops with drone, / acre Soil testing, / sample GPS grid soil testing, / acre Managing stored grain, / bushel Vacuuming grain, / bushel Livestock hauling with trailer, / loaded mile Livestock hauling with semi truck, / loaded mile Bulldozing, / hour, / foot of blade Digging post holes, / hole Trenching, / foot Tiling, tiling machine (excluding materials), / foot Tiling, tile plow (excluding materials), / foot Back hoeing, / hour Clearing land, / hour Chain sawing, / hour Welding machinery, / hour Mowing CRP or pasture, / acre Controlled burning of grass, CRP, pasture, / acre Mowing fence rows, ditches, / hour Mowing lawns, / hour Chopping brush, / acre Using truck scale, / load weighed

Average Charge

$77.65 10.95 15.00

256.45 14.25 12.05 80.70 5.25

108.90 49.35 16.35 17.30 4.25 3.80 5.00 7.00 0.06 0.10 3.00 3.85 12.85 4.90 1.75 1.10 0.99 95.70

162.50 64.05 62.55 18.75 20.60 71.90 41.10 39.30 5.55

Median Charge

$82.50 12.50 14.30

260.00 14.25 10.50 85.00 6.00

100.00 50.00 18.00 17.75 4.00 4.00 5.00 7.20 0.05 0.10 3.00 4.00 13.50 4.40 1.75 1.05 0.90 82.50

167.50 67.50 65.00 19.15 16.50 75.00 50.00 40.00 5.00

Range

Number of Responses

$50.00 - $100.00

30

6.25 - 13.89

9

10.00 - 18.75

17

200.00 - 300.00

7

10.00 - 16.00

12

10.00 - 16.00

10

50.00 - 110.00

7

3.25 - 6.00

5

100.00 - 125.00

9

40.00 - 65.00

11

12.00 - 19.00

6

12.00 - 22.00

8

3.00 - 6.00

14

4.00 - 4.00

5

3.00 - 7.00

10

4.00 - 10.00

13

0.01 - 0.13

17

0.04 - 0.20

29

2.00 - 4.00

12

3.80 - 4.00

9

8.00 - 16.67

19

4.00 - 5.00

6

1.50 - 2.00

7

0.50 - 1.50

10

0.50 - 2.00

12

65.00 - 135.00

18

150.00 - 200.00

8

50.00 - 80.00

14

30.00 - 80.00

15

10.00 - 30.00

36

5.00 - 40.00

10

40.00 - 100.00

32

18.50 - 60.00

16

27.00 - 50.00

7

2.50 - 10.00

8

Bin Rental

Storing grain, bin rental, / bushel / month Storing grain, bin rental, / bushel / year

Average Charge

$0.027 0.159

Median Charge

$0.050 0.150

Number of

Range Responses

$0.020 - $0.050

21

0.100 - 0.250

30

2019 Iowa Farm Custom Rate Survey

Page 5

Machine Rental (operator, tractor, and fuel not included)

Tractor, / horsepower, / hour Grain drill, / acre No-till soybean drill, / acre Corn head for combine, / acre Soybean head for combine, / acre Grain cart with auger, corn, / acre Grain cart with auger, soybeans, / acre Grain truck (semi), / bushel, / round trip Grain auger, / bushel Grain vacuum, / bushel Grain cleaner, / bushel Liquid manure spreader, / hour Solid manure spreader, / hour Skid loader, / hour Dry bulk fertilizer applicator, / acre Liquid fertilizer applicator, / acre Anhydrous fertilizer applicator, / acre Power washer, / hour Generator, / hour

Average Charge

$0.21 9.90

12.40 9.05 8.95 6.05 5.40 0.10 0.06 0.08 0.13

72.00 57.00 66.65

5.65 6.70 7.75 41.90 50.00

Median Charge

$0.20 10.00 12.00 10.00 10.00

5.00 5.00 0.10 0.05 0.10 0.10 60.00 50.00 72.50 6.00 7.00 8.00 40.00 50.00

Range

Number of Responses

$0.19 - $0.25

9

6.00 - 12.50

12

10.00 - 15.00

10

6.00 - 10.50

14

7.00 - 10.00

12

3.50 - 10.00

12

2.00 - 8.00

11

0.05 - 0.15

8

0.01 - 0.10

8

0.04 - 0.14

14

0.10 - 0.15

5

50.00 - 100.00

5

50.00 - 60.00

5

40.00 - 100.00

14

5.00 - 6.00

7

5.00 - 8.00

9

5.00 - 12.00

11

35.00 - 50.00

8

50.00 - 50.00

5

Estimating a Machinery Rental Rate for Items Not Surveyed

The following worksheet can be used to estimate a rental value for equipment items not shown above.

1. Custom charge (includes labor, fuel, tractor) 2. Percent of custom charge that is for interest, insurance, depreciation,

and repairs (excludes fuel and labor) (use 60% for tillage, 65% for planting and harvesting) 3. Rental value, including tractor (1 x 2)

$___________/acre x ___________% = $___________/acre

4. Tractor rental value, if tractor is not provided: _________HP x $_________ per hp-hour rental rate (see above) / _________acres/hour1/ = Ex: 150 HP x $.21 (per hp-hour rental rate) / 15 acres/hour = $2.08

? $___________/acre

5. Implement rental value, without tractor (3 minus 4)

= $___________/acre

1/ Typical values for acres covered per hour can be found in AgDM File A3-24, Estimating the Field Capacity of Farm Machines, extension.iastate.edu/agdm/crops/pdf/a3-24.pdf

Example: Tandem Disk

$15.40

x

60%

=

$9.24

?

$2.08

= $7.16/acre

The information available in the Custom Rate Survey is only possible due to the responses provided each year. If you are interested in joining the 2020 Custom Rate Survey mailing list, send mail or e-mail address to: Alejandro Plastina, Iowa State University, Department of Economics, 478 E Heady Hall, 518 Farm House Lane, Ames, IA 50011-1054, 515-294-6160, plastina@iastate.edu.

Iowa State University Extension and Outreach does not discriminate on the basis of age, disability, ethnicity, gender identity, genetic information, marital status, national origin, pregnancy, race, color, religion, sex, sexual orientation, socioeconomic status, or status as a U.S. veteran, or other protected classes. (Not all prohibited bases apply to all programs.) Inquiries regarding non-discrimination policies may be directed to the Diversity Advisor, 2150 Beardshear Hall, 515 Morrill Road, Ames, Iowa 50011, 515-294-1482, extdiversity@iastate.edu. All other inquiries may be directed to 800-262-3804.

Prepared by Alejandro Plastina, extension economist

plastina@iastate.edu Ann Johanns, extension program specialist

Gary Wynne, student assistant

Additional machinery management publications are available at:

extension.iastate.edu/agdm store.extension.iastate.edu/

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