Ohio Farm Custom Rates 2014

AEDE-11-14
Agriculture and Natural Resources
Date: 
09/12/2014
Barry Ward, Leader, Production Business Management, Department of Agricultural, Environmental and Development Economics

A large number of Ohio farmers hire out for machinery operations and other farm related work. This is often due to lack of proper equipment, lack of time or lack of expertise for a particular operation. Many farm business owners do not own the necessary equipment for every possible job that they may encounter in the course of operating a farm and may, instead of purchasing the equipment needed, seek out someone with the proper tools necessary to complete the job. This farm work that is completed by others is often referred to as "custom farm work" or, more simply, "custom work." A "custom rate" is the amount agreed upon by both parties to be paid by the custom work customer to the custom work provider.

The custom rates reported in this publication are based on a statewide survey conducted in 2014. Two hundred fifty-six farmers, custom operators, farm managers and landowners completed surveys for this research. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and the labor for the operation.

Some custom rates published here have a wide range. Possible explanations are the type or size of equipment used, size/shape of fields, condition of the crop (for harvesting operations), the value of labor, the mix of labor and equipment used, and the different income needs of full-time custom operators versus farmers supplementing their income. Also, some custom operations are provided at bargain rates due to family relationships between the parties or due to the fact that custom providers may see an increased probability of eventually securing the custom farmed farmland in a cash rental or other rental agreement.

Average custom rates reported in this publication are a simple average of all the survey responses. The "Range" rates represent -/+ one standard deviation around the average. (Standard deviation is a measure of the variability of the survey responses; one standard deviation both above and below the average includes approximately two-thirds of all survey responses.) The "Median" represents the middle value in the survey responses. The "Minimum" and "Maximum" reported reference the minimum and maximum responses from the survey data for a given operation.

Charges may be added if the custom provider considers a job abnormal. A job may be considered abnormal due to the distance from the operator's base location, the difficulty of the terrain, the amount of product or labor involved with the operation or other special requirements of the custom work customer.

There is no assurance that the average rates reported in this publication will cover your total costs for performing the custom service or that you will be able to hire a custom operator for the average rate published in this fact sheet. Calculate your own costs carefully before determining the rate to charge or pay. It may be helpful to compare these custom rates with machinery costs calculated using an economic engineering approach. The data calculated with this approach are intended to show a representative farming industry cost for specified machines and operations. The following resources are available to help you calculate and consider the total costs of performing a given machinery operation. Users may also consider using the data contained in these resources as a base for future custom rates.

Before entering into an agreement, discuss all of the details of the specific job with the other party.

Fuel prices impact custom rates, and rates may fluctuate based on large movements in fuel prices. The approximate price of diesel fuel at the time of this survey was $3.25–$3.75 per gallon for off-road (farm) usage.

  Avg* Std Range Med Min Max
Soil Preparation
Stalk Chopper / Acre 12.55 3.35 $9.15 $15.90 12.00 7.00 20.00
Moldboard Plow / Acre 20.40 5.03 $15.35 $25.40 20.00 15.00 34.50
Chisel Plow / Acre 17.10 5.10 $12.00 $22.20 16.00 10.00 34.50
Disk Chisel / Acre 19.00 4.50 $14.55 $23.50 18.00 12.00 34.50
Disk-Tandem / Acre 13.20 3.69 $9.50 $16.85 12.00 8.00 25.00
Disk-Offset / Acre 19.30 4.13 $15.15 $23.45 17.50 15.00 25.00
Soil Finishing / Acre 14.85 4.13 $10.70 $19.00 14.00 10.00 26.00
Field Cultivator / Acre 13.80 3.92 $9.85 $17.70 12.00 9.00 26.00
Land Leveling / Acre 12.30 4.40 $7.90 $16.70 10.00 8.00 22.00
Land Leveling / Hour 68.35 25.82 $42.50 $94.15 75.00 25.00 100.00
Sub-soiling / Acre 20.20 4.80 $15.40 $25.00 20.00 12.00 30.00
V-Ripping / Acre 24.30 5.76 $18.55 $30.10 24.25 16.00 40.00
Strip Tillage / Acre 18.50 3.39 $15.10 $21.90 19.00 14.00 24.00
Strip Tillage w/ Fertilizer Injection / Acre 24.75 11.06 $13.70 $35.80 22.00 16.00 39.00
Fertilizer Application - Ground
Dry Bulk / Acre 6.15 1.70 $4.45 $7.85 6.00 3.00 13.00
Liquid Knife / Acre 9.50 3.43 $6.05 $12.90 9.00 3.00 18.00
Liquid Spray / Acre 7.15 2.17 $5.00 $9.35 7.00 3.00 15.00
Anhydrous / Acre 12.90 4.10 $8.80 $17.00 12.38 6.50 24.00
Lime / Acre 8.05 2.84 $5.20 $10.90 8.00 3.50 15.00
Lime / Ton 7.30 3.19 $4.10 $10.45 6.50 2.00 18.00
Chemical Control of Weeds or Insects
Spraying - Self Propelled / Acre 7.00 1.79 $5.20 $8.80 6.50 4.00 15.00
Spraying - Pull Type / Acre 7.00 2.41 $4.60 $9.45 6.38 3.00 15.00
Highboy Spraying / Acre 8.75 2.70 $6.05 $11.45 7.50 5.50 15.00
Mechanical Weed Control
Rotary Hoeing / Acre 7.00 2.03 $4.85 $8.90 7.50 4.00 10.00
Aerial Application
Fertilizer / Acre 11.60 3.14 $8.45 $14.75 11.00 7.50 18.00
Seed / Acre 11.30 2.33 $8.95 $13.60 10.00 9.00 17.00
Chemicals / Acre 10.50 1.54 $8.95 $12.00 11.00 7.00 12.00
Planting Operations
Conventional Till
Plant Corn 30" Rows / Acre 17.80 4.82 $12.95 $22.60 17.00 10.00 30.00
Plant Corn w/ Starter Fertilizer 30" Rows / Acre 19.50 5.27 $14.20 $24.75 18.25 10.00 34.00
Plant Soybeans 15" Rows / Acre 18.80 5.31 $13.50 $24.10 18.00 10.00 30.00
Plant Soybeans 30" Rows / Acre 18.40 5.78 $12.60 $24.15 18.00 12.00 28.00
Drill Soybeans / Acre 16.25 4.08 $12.20 $20.35 15.00 10.00 26.00
Drill Small Grains / Acre 16.60 4.67 $11.95 $21.25 15.50 10.00 26.00
*Avg = Average; Std = Standard Deviation; Range = Average -/+ 1 Standard Deviation; Med = Median; Min = Minimum;
Max = Maximum
  Avg* Std Range Med Min Max
No-Till
Plant Corn 30" Rows / Acre 19.45 5.34 $14.10 $24.80 18.50 10.00 32.00
Plant Corn w/ Starter Fertilizer 30" Rows / Acre 20.90 5.95 $14.95 $26.85 20.00 10.00 36.00
Plant Soybeans 15" Rows / Acre 19.05 5.09 $13.95 $24.15 18.50 10.00 32.00
Plant Soybeans 30" Rows / Acre 20.40 6.56 $13.80 $26.95 19.00 12.00 34.00
Drill Soybeans / Acre 17.30 3.92 $13.40 $21.25 17.00 10.00 28.00
Drill Small Grains / Acre 16.75 4.08 $12.65 $20.85 16.00 10.00 26.00
Grass/Legume/Pasture Seeding
Broadcast / Acre 11.15 5.22 $5.90 $16.35 9.00 6.00 20.00
Grain drill / Acre 16.80 5.24 $11.55 $22.05 16.00 9.50 26.00
Grain Harvest
Harvest Corn-Combine & Grain Cart / Acre 34.65 7.50 $27.15 $42.15 33.00 25.00 68.00
Harvest Soybeans-Combine & Grain Cart / Acre 32.00 6.07 $25.90 $38.05 31.00 23.00 50.00
Harvest Wheat-Combine & Grain Cart / Acre 31.80 6.28 $25.55 $38.10 30.00 22.00 50.00
Combine Corn / Acre 28.75 5.21 $23.55 $34.00 28.00 16.00 45.00
Combine Soybeans / Acre 28.10 5.28 $22.85 $33.40 27.50 16.00 45.00
Combine Small Grains / Acre 27.70 5.23 $22.45 $32.95 26.50 16.00 45.00
Ear Corn Picker / Acre 29.40 6.07 $23.35 $35.50 25.00 25.00 37.00
Grain Cart / Acre 6.20 3.37 $2.85 $9.60 5.00 2.00 15.00
Grain Storage - On Farm              
Storage / Month / Bushel $0.045 $0.02 $0.025 $0.065 $0.04 $0.03 $0.10
Storage / Year / Bushel $0.315 $0.10 $0.210 $0.415 $0.33 $0.18 $0.48
Grain Dry              
Per Point of Moisture Removed / Bushel $0.055 $0.03 $0.025 $0.085 $0.05 $0.02 $0.12
Grain Haul
Farm to Market / Bushel $0.16 $0.07 $0.090 $0.230 $0.15 $0.05 $0.47
Average Miles - Farm to Market 23.6 17.0 6.6 40.6 20.0 3.0 81.4
Field to Farm / Bushel $0.10 $0.04 $0.055 $0.140 $0.10 $0.03 $0.20
Average Miles - Field to Farm 8.7 5.4 3.3 14.1 10.0 1.0 25.0
Custom Farming - Tillage, Plant, Spray/Tending, Harvest (all or a combination of those listed)
Corn / Acre $122.20 $32.04 $90.15 $154.25 $125.00 $70.00 $175.00
Soybeans / Acre $103.50 $22.33 $81.15 $125.80 $100.00 $65.00 $140.00
Small Grains / Acre $97.30 $27.07 $70.20 $124.35 $88.00 $70.00 $140.00
Corn Silage Harvest
Upright Silo              
Chop - Corn Silage / Ton $5.50 $0.41 $5.10 $5.90 $5.50 $5.00 $6.00
Chop, Haul, and Fill - Corn Silage / Ton $7.40 $0.95 $6.45 $8.30 $7.75 $6.00 $8.00
Chop, Haul, and Fill - Corn Silage / Hour $183.35 $28.87 $154.50 $212.20 $200.00 $150.00 $200.00
Bunker Silo              
Chop - Corn Silage / Ton $6.25 $1.09 $5.15 $7.35 $6.00 $5.00 $7.50
Chop, Haul, and Fill - Corn Silage / Ton $6.90 $2.68 $4.25 $9.60 $7.13 $3.50 $10.00
Silage Bag
Chop - Corn Silage / Ton $5.50 $0.50 $5.00 $6.00 $5.50 $5.00 $6.00
Chop, Haul, and Fill - Corn Silage / Ton $6.50 $4.95 $1.55 $11.45 $6.50 $3.00 $10.00
*Avg = Average; Std = Standard Deviation; Range = Average -/+ 1 Standard Deviation; Med = Median; Min = Minimum;
Max = Maximum
Haylage Harvest Avg* Std Range Med Min Max
Bunker Silo
Chop - Haylage / Ton $6.50 $0.50 $6.00 $7.00 $6.50 $6.00 $7.00
Chop, Haul, and Fill - Haylage / Ton $8.50 $1.32 $7.20 $9.80 $8.00 $7.50 $10.00
Pack Bunker Silo / Hour $85.00 $18.03 $67.00 $103.05 $90.00 $65.00 $100.00
Fill Silage Bag / Ton $5.65 $1.89 $3.75 $7.55 $6.50 $3.50 $7.00
Hay / Straw Harvest
Mowing / Acre $13.15 $4.55 $8.60 $17.70 $12.75 $5.00 $25.00
Mowing/Conditioning / Acre $14.20 $3.69 $10.50 $17.90 $14.00 $6.00 $25.00
Raking / Acre $6.80 $3.30 $3.50 $10.10 $5.50 $3.00 $15.00
Tedding / Acre $6.95 $3.08 $3.85 $10.00 $6.00 $3.00 $12.00
Baling: Small Square Bales
Bale / Drop in Field / Bale $0.65 $0.31 $0.35 $0.95 $0.55 $0.25 $1.25
Bale and Load on Wagon / Bale $0.80 $0.35 $0.45 $1.15 $0.75 $0.35 $1.60
Haul From Field and Store / Bale $0.40 $0.17 $0.25 $0.60 $0.40 $0.25 $0.60
Bale, Load, Haul and Store / Bale $1.50 $0.79 $0.75 $2.30 $1.38 $0.50 $3.00
Baling: Large Round Bales ~1500#
Baled and Left in Field / Bale $10.10 $3.06 $7.05 $13.15 $9.25 $7.00 $15.00
Baled and Net Wrapped and Left in Field / Bale $10.90 $4.01 $6.90 $14.90 $8.75 $8.00 $17.00
Baling: Large Round Bales ~600-1000#
Baled and Left in Field / Bale $8.75 $2.09 $6.65 $10.85 $8.00 $6.00 $15.00
Baled and Net Wrapped and Left in Field / Bale $9.50 $2.60 $6.90 $12.10 $8.75 $6.25 $18.00
Baled and Hauled from Field / Bale $11.65 $2.50 $9.15 $14.10 $11.75 $9.00 $14.00
Baled and Wrapped Wet in Plastic $15.90 $5.63 $10.25 $21.50 $17.25 $8.00 $21.00
(Plastic Included) / Bale              
Large Square
Baled and Left in Field / Bale $10.65 $3.39 $7.25 $14.05 $9.50 $7.00 $16.00
Baled and Wrapped Wet in Plastic $18.00 $3.61 $14.40 $21.60 $17.00 $15.00 $22.00
(Plastic Included) / Bale              
Complete Hay Harvest - Shares
% of Crop to Custom Provider 55.3 7.0 48.4 62.3 50.0 50.0 67.0
Manure Application
Spread Manure / Ton $8.00 $1.58 $6.40 $9.60 $8.00 $6.00 $10.00
Manure Spread by Dragline
Pump and Spread / per 1000 gallon $8.45 $1.17 $7.25 $9.60 $8.00 $7.00 $10.00
Hired Labor
Machinery Operations / Hour $14.00 $3.15 $10.85 $17.15 $15.00 $8.00 $20.00
Milking Cows / Hour $11.90 $3.36 $8.50 $15.25 $11.00 $10.00 $20.00
General Farm Labor / Hour $11.20 $2.37 $8.80 $13.55 $10.00 $7.50 $19.00
*Avg = Average; Std = Standard Deviation; Range = Average -/+ 1 Standard Deviation; Med = Median; Min = Minimum;
Max = Maximum
Drainage and Tile Installation Avg* Std Range Med Min Max
Ditching Machine - without Materials
4" Plastic / Foot $0.49 $0.18 $0.31 $0.66 $0.46 $0.30 $0.90
6" Plastic / Foot $0.51 $0.23 $0.28 $0.74 $0.48 $0.25 $1.00
8" Plastic / Foot $0.65 $0.31 $0.34 $0.96 $0.55 $0.25 $1.20
10" Plastic / Foot $0.66 $0.35 $0.31 $1.01 $0.70 $0.25 $1.00
Typical Depth - Inches 33.2 5.1 28.1 38.3 33.0 24.0 42.0
Typical Lateral Spacing - Feet 37.8 10.6 27.1 48.4 35.0 30.0 60.0
Drainage Plow - without Materials
4" Plastic / Foot $0.24 $0.08 $0.16 $0.32 $0.22 $0.14 $0.41
5" Plastic / Foot $0.33 $0.06 $0.28 $0.39 $0.30 $0.30 $0.40
6" Plastic / Foot $0.52 $0.28 $0.24 $0.80 $0.48 $0.20 $1.25
Typical Depth - Inches 33.1 3.0 30.0 36.1 33.0 30.0 39.0
Typical Lateral Spacing - Feet 39.3 8.5 30.8 47.7 40.0 30.0 60.0
Drainage Plow - with Materials
4" Plastic / Foot $0.54 $0.12 $0.41 $0.66 $0.50 $0.34 $0.80
Miscellaneous
Bush Hogging / Acre $17.05 $11.69 $5.35 $28.75 $13.00 $8.00 $62.50
Income Tax Preparation / Hour $73.50 $33.52 $40.00 $107.00 $60.00 $40.00 $125.00
Income Tax Preparation / Return $364.50 $205.68 $158.80 $570.15 $350.00 $40.00 $950.00
Track Hoe / Cleaning Ditches / Hour $99.40 $28.63 $70.75 $128.00 $100.00 $45.00 $150.00
Remove Snow with Loader / Hour $69.65 $28.65 $41.00 $98.30 $70.00 $25.00 $125.00
Remove Snow with Blade / Hour $56.90 $26.33 $30.55 $83.20 $60.00 $15.00 $100.00
Remove Snow with Blower / Hour $83.55 $17.25 $66.30 $100.80 $85.00 $60.00 $100.00
Hauling Livestock / Loaded / Mile $2.30 $0.86 $1.45 $3.15 $2.00 $1.00 $3.75
Bulldozing per Foot of Blade / Hour $9.40 $2.19 $7.20 $11.60 $9.69 $6.25 $15.00
Soil Testing / Sample $18.30 $10.28 $8.00 $28.55 $17.00 $7.50 $32.50
Soil Testing / Acre $5.55 $1.87 $3.65 $7.40 $5.00 $4.00 $10.00
Grid Soil Sampling / Acre $8.50 $3.41 $5.10 $11.90 $8.00 $4.00 $18.50
Power Washing / Hour $32.70 $16.64 $16.05 $49.35 $40.00 $10.00 $50.00
Machinery Rental
Tractor / $ Per Horsepower / Hour $0.34 $0.20 $0.14 $0.53 $0.28 $0.10 $1.00
Corn Planter: Conventional / Acre $12.55 $5.88 $6.70 $18.45 $12.50 $6.00 $25.00
Average Number of Rows 12.0 8.5 3.5 20.5 12.0 6.0 30.0
Corn Planter: No-Till / Acre $13.15 $6.56 $6.55 $19.70 $13.00 $6.00 $25.00
Average Number of Rows 12.0 7.9 4.1 19.9 12.0 6.0 30.0
Combine / Seperator Hour $174.00 $58.89 $115.10 $232.90 $155.00 $100.00 $250.00
Combine / Acre $30.80 $5.63 $25.15 $36.45 $30.00 $25.00 $38.00
Avg Grain Table Header Wth in Ft 28.3 2.6 25.8 30.9 30.0 25.0 30.0
Avg Number of Corn Header Rows 7.7 0.8 6.9 8.5 8.0 6.0 8.0
Grain Drill: No-Till / Acre $11.60 $4.37 $7.25 $15.95 $10.00 $6.00 $25.00
Average Width in Feet 17.5 8.0 9.5 25.5 15.0 10.0 40.0
Bobcat or Skidsteer Loader / Day $226.40 $153.66 $72.70 $380.05 $157.50 $80.00 $450.00
Dry Bulk Fertilizer Applicator / Acre $3.30 $1.58 $1.70 $4.85 $2.40 $2.00 $5.00
Liquid Fertilizer Applicator / Acre $5.70 $3.56 $2.15 $9.25 $4.75 $2.00 $12.00
*Avg = Average; Std = Standard Deviation; Range = Average -/+ 1 Standard Deviation; Med = Median; Min = Minimum;
Max = Maximum
  Avg* Std Range Med Min Max
Facility Rental
Machinery Storage - Square Foot / Year $0.51 $0.25 $0.26 $0.76 $0.52 $0.25 $1.00
*Avg = Average; Std = Standard Deviation; Range = Average -/+ 1 Standard Deviation; Med = Median; Min = Minimum;
Max = Maximum
Estimating Machinery Rental Rate from 2014 Custom Rates
  Sample Calculations (using 2014 average field cultivator rate) Your Calculations
1. Custom charge including labor, fuel and tractor: $13.80 per acre $__________per acre
2. Percent of custom charge for interest, insurance, depreciation and repairs, excluding fuel and
labor. (Use 70% for tillage or 80% for planting and harvesting.):
70% __________%
3. Rental value including tractor. (Multiply steps 1 and 2 above.): $9.66 per acre $__________per acre
4. Tractor rental value if tractor is not provided. (Use the following equation.): ___HP x $___per HP-hour rental rate (using 2014 average HP-hour rental rate) ÷ ___acres per hour Example: 310 HP x $.34 per HP-hour rental rate ÷ 33 acres per hour = $3.19 per acre $3.19 per acre $__________per acre
5. Implement rental value without tractor. (Subtract Step 4 from Step 3 above.): $6.47 per acre $__________per acre

 

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