Examples pertaining to field cultivation and a self-propelled sprayer were used to illustrate the conceptual framework. Anhydrous ammonia at $16.50 per acre. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine . An active member of organizations such as 4-H, FFA and the National Junior Angus Association, she was able to show Angus cattle on the local, state and national levels while participating in contests and leadership opportunities that were presented through these programs. Many farmers booked nitrogen purchases earlier in the fall when ammonia prices were below $1,000 per ton. Effective reference prices can exceed statutory reference, High farm input costs, especially for fertilizer and fuel, have reinvigorated arguments for farm support programs where payments are triggered when the cost of production rises. Custom work is defined as a service or operation performed for the customer with the . HARVESTING September 2021 This publication shows estimated costs for combining, using grain carts, and hauling grain. "Planting and Acreage Decisions in 2022." Given the current high prices, commodity title payments are not expected from any program option for the, Net farm income in the U.S. reached nearly $95 billion in 2020 and is projected at nearly $117 billion for 2021 after averaging just under $76 billion from 2015 to. RP-HPE has a lower premium and thus a lower cash, The impacts of the Russia-Ukraine conflict on Ukrainian corn and wheat supply are reassessed at the wars one-year anniversary. Much uncertainty exists about all three prices levels, and it is likely that there will be changes in prices moving into the spring planting season. Many forecasters are using much lower prices for 2022. Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, Swanson, K., G. Schnitkey, N. Paulson, C. Zulauf and J. Coppess. For farms in that situation, the cost of retaining that equipment to use as needed is comparatively lower than the economic cost of a newer implement because depreciation and interest make up a large portion of the economic costs. Fuel costs are based on $2.50 per gallon for diesel fuel. Annually, Iowa State University surveys those who hire and/or perform custom farm services and compiles a report of results. This report summarizes farm income and earnings for FBFM enrolled farms for 2012-2016. Costs rise dramatically with lower use because much of the tillage related cost is associated with depreciation and interest on owning the equipment. Repair and maintenance costs for a particular machine can vary substantially among farms. If annual hours of use or the useful life were lower, the cost rates for interest, insurance and housing, and repairs would be higher. STARTING POINT: Rates for mowing and baling hay vary across Indiana. Lattz, D. and G. Schnitkey. Machinery cost estimates for 2021 have been released and are available on the farmdoc website (see Management section of farmdoc). This publication reports custom rates based on a statewide survey of 377 farmers, custom operators, farm managers, and landowners conducted in 2020. Operating costs include repairs and maintenance, fuel, lubrication, and labor. Although tillage can provide value, there is a cost associated with each tillage operation. This program calculates per-acre budgets for different crops and a whole farm budget and includes breakevens. Labor time is assumed to be 1.1 times the tractor hour resulting in a 10% higher cost per tractor hour. Similarly, if a farm is providing custom rate services and has a higher cost than the published survey rates, it either needs to charge more or try to figure out how to lower costs per acre. The information below is based on 122 responses and 3,389 custom rates provided by Iowa farmers, custom operators, and farm managers. The alternative farmdoc forecast and USDA forecast are heavily based on historical supply/demand conditions. Users can select the state, county, and crop combination that they wish to consider. The purchase price is assumed to equal 85% of the list price of the tractor. Summary of index numbers for Illinois farmland values. For most farms, the best cost management practice would be to own tillage implements that provide the greatest economic value for the farm, including which operations are expected to be used most frequently on the greatest number of acres. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. This information is based on 122 responses and 3,389 custom rates provided by Iowa farmers, custom operators, and farm managers. Farmers likely will be reducing fertilizer rates. At this early stage, The National Agriculture Statistics Service (NASS) recently released county yields. Gary Schnitkey, ag economist at U of I, says theyll publish 2021 machinery cost estimates by the end of September. This report is based on data obtained from farm business records on Illinois farms. We did not raise fertilizer costs to reflect the highest prices because: Soybean fertilizer costs are at $102 per acre (see Table 1), up considerably from the $45 costs for 2021. University of Illinois Extension provides equal opportunities in . Overall, corn and soybeans have about the same projected profitability in 2022: $61 farmer return for corn and $67 farmer return for soybeans, giving a difference of -$6 per acre. Farmer returns in 2021 are projected to be $378 per acre for corn and $305 per acre for soybeans. From time to time, Prairie Farmer gets requests for the custom rate estimates on various field operations. Ohio Farm Custom Rates. Fuel costs are based on a $2.25 per gallon price for diesel fuel. "2017 Iowa Farm Custom Rate Survey." U of I ag economists expect 2021 machinery cost estimates to be 8% to 10% higher than 2019s. If this level of detail is not available, it is common to use annual hours of use and machine age to estimate repair and maintenance costs. Respondents were asked to report custom rates they had either paid or received during the past year. Numerous farms that are either hiring a custom operator or providing custom rate services to other farms use published custom rate surveys. The machinery cost estimates include four categories of costs associated with operating the machinery: tractor overhead, implement overhead, fuel charges, and labor. University of Illinois Extension, Farm Business Management, June 2017 (a). Annually, Iowa State University surveys those who hire and/or perform custom farm services and compiles a report of results. At this point, those historical relationships suggest much lower prices than are being offered by CME futures contracts. If annual hours of use or useful life were lower, the cost rates for interest, insurance and housing, and repairs would be higher. Guidelines are available here. farmdoc daily (11):147, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, October 26, 2021. 122 0 obj <> endobj Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, Schnitkey, G., C. Zulauf, K. Swanson and N. Paulson. "Management Decisions Relative to High Nitrogen Fertilizer Prices." Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. 147 0 obj <>/Filter/FlateDecode/ID[<269ADE589DBEE54094DDE17E08AF1239><530EECDB0D779343B2147141D420F3BF>]/Index[122 43]/Info 121 0 R/Length 119/Prev 235468/Root 123 0 R/Size 165/Type/XRef/W[1 3 1]>>stream This publication shows estimated costs for combining, using grain carts, and hauling grain. Total non-land costs are projected at $755 per acre for corn, a $124 increase over the $631 per acres cost in 2021 (see Table 1). Twitter at farmdocdaily. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. ceres imagaging lindsay irrigation partner. Uncertainty exists about whether fertilizer prices will continue at high levels. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated December 7, 2021. hbbd```b``+@$S7di'EHi` ,""A$& Q`D]k@${ d[Vq Illinois Farm Management Handbook. A $19 per hour rate was used in 2019 compared to a $20 per hour rate in 2021. Includes tractor overhead, implement overhead, fuel and lube, and labor: Depending on your situation, you may want to consider the following spraying and ammonia application total costs from 2019: Fuel costs are based on $2.50 per gallon for diesel fuel. Understanding the . This Microsoft Excel spreadsheet will estimate Price Loss Coverage (PLC) and Agricultural Risk Coverage at the county level ARC-IC (Agriculture Risk Coverage Individual) has received less attention than ARC-CO (ARC County) and PLC (Price Loss Coverage). Custom Rates Financial and economic considerations such as limited capital, untimely cash flow, insufficient labor, small acreage, or other reasons require farmers to hire custom service for field operations. Table 1 shows estimated costs of performing agricultural field operations. Costs include overhead (depreciation, interest, insurance . Iowa State University Extension and Outreach, Ag Decision Maker, A3-10, March 2017. http://www.farmdoc.uiuc.edu/manage/newsletters/fefo06_16/fefo06_16.html, http://www.farmdoc.uiuc.edu/manage/machinery/machinery_summary.html. For vertical tillage and chisel plow, the economic cost is lower than the lowest custom rate reported. Purdue Educators distributed the questionnaires at meetings and events statewide during the last month of 2020 and the first three months of 2021. These estimates are useful for determining custom rates and for analyzing machinery costs on farms. This indicates that some level of tillage is resulting in yields that offset costs, while repeated tillage operations add costs beyond attained value. Machinery Cost Estimates: Forage Field Operations. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. Includes tractor overhead, implement overhead, fuel and lube and labor: Includes tractor overhead, platform overhead, fuel and lube, and labor: . Survey respondents include both providers and users of custom services, and data reflect the prices paid for typical farm and ranch custom operations. Ruraltax.org contains many articles on taxes aimed at farm and land owners. Custom Farming. Report with summary of cost to produce milk in Illinois. Authors: Dale Lattz and Gary Schnitkey. Langemeier (2017) and Plastina and Johanns (2017) indicate that the custom rate for using a self-propelled sprayer is approximately $6.70 to $7.65 per acre. The updated budgets result in a comparative returns situation between corn and soybeans that does not indicate acreage would deviate from recent rotations. The 2018 Farm Bill What-If Tool has been released (clickhere to download). The "Ohio Farm Custom Rates 2022" publication reports custom rates based on a statewide survey of 223 farmers, custom operators, farm managers, and landowners conducted in 2022. And how do you set a rate? The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. . Using this information the total machinery per acre was $3.90. In addition to the costs outlined in table 1, the costs in table 2 include fuel, lubrication, and labor costs. farmdoc daily (11):112, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 27, 2021. Registered in England and Wales. Our YouTube channel includesfarmdocwebinars and publication related videos. The "Ohio Farm Custom Rates 2022" publication reports custom rates based on a statewide survey of 223 farmers, custom operators, farm managers, and landowners conducted in 2022. All rights reserved. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. The average farmdoc machinery use economic costs are calculated for use on approximately 1,400 acres. Fuel costs will vary with each operations fuel use. Many Iowa farmers hire some custom machine work in their farm business or perform custom work for others. It is important to note that other factors such as timeliness, liquidity, solvency, and tax management may affect a farms decision to own machines or custom hire certain field operations. Lets say you dont want to retire and rent out your farm, but you dont want to do it all yourself either. A farm utilizing a piece of tillage equipment on fewer acres could purchase a smaller, less expensive implement and reduce cost per acre. According to Lattz and Schnitkey (2017b), a self-propelled sprayer can cover 80.6 acres per hour. The 2021 estimates appear in the 2021 tractor costs publications, while the 2017 and 2019 costs appear in the machinery costs 2017 and 2019 editions. Spraying. Subscribe to receive top agriculture news, Be informed daily with these free e-newsletters. '/|@@q]H? l Credit reports and scores are being used for many decisions such as credit determination and pricing; insurance pricing; government licenses; and employment. This publication presents crop budgets for three regions in Illinois: northern, central, and southern Illinois. CBO recently, The operational efficiency of any industry is key to long-term profitability, no less so for the U.S. ethanol industry. hb```]O@(9j0;sLUG\S%mN3/,w```6 q(f`4``fg4bx#C]e^T&2@f`{ 6Vy,(! For seven of the nine tillage operations compared, the economic cost of owning the machinery and performing the task is less than the average custom rate cost per acre, with all but one considerably lower than the average custom rate cost. As an alternative to the executable tool you candownload the spreadsheet here. Thus, her professional and career focus is centered around educating agriculture producers and youth to aid in prospering the agriculture industry. Depreciation for tax purposes is often accelerated compared to economic depreciation. Crop Insurance Summary of Business Tool (Sheet), Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Post Application Coverage Endorsement Tool, Biomass Crop Budget Tool Miscanthus and Switchgrass, Illinois Soil Productivity and Yield Utilities, Illinois Crop Budgets and Historic Returns, Department of Agricultural and Consumer Economics. Fuel costs are based on a $2.25 per gallon price for diesel fuel. Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, Machinery Cost Estimates: Field Operations, Machinery Cost Estimates: Forage Field Operations, 2022 Planting Decisions, Nitrogen Fertilizer Prices, and Corn and Soybean Prices, Department of Agricultural and Consumer Economics. An additional amount for profit should be added to our cost estimates, as we have not added an amount for returns. Acres farmed, annual hours, useful life, and interest rate represent those of the case farm. In certain weather and field conditions, tillage operations may be necessary to prepare the field, while other times tillage may not be necessary. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated December 7, 2021. It is also important to check your report to become an informed consumer of information being used to make decisions about you. Learn more. Fertilizer prices may decrease in the spring when many fertilizer purchases are made. Eliminating a tillage pass in a single year will reduce fuel, labor, and repair costs for the given year, but the ownership costs will remain. . At this point, our return estimates are not suggesting large changes in acreage. for the complete table of custom rates, which also lists tractors of various sizes. More detail on the approaches used to estimate overhead costs are given in the Machinery Cost Estimates: Tractors publication. Projected financial statements and, Illinois crop budgets for 2023 have been revised from their initial release in August (farmdoc daily, August 2, 2022). Fuel. Estimates are for crops in midwest and southeast states. Machinery Costs: Field Operations. farmdoc Business Management, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 2019. Users then can change 2018 through 2020 county yields and prices to see ARC-CO and PLC payments under those yields and prices. Machinery cost estimates for 2019 are available in the management section of farmdoc in five publications. Due to the fuel price increases, fuel costs for the 310 horsepower tractor increased from $37.30 per hour in 2019 to $41.10 per hour in 2021 (see Table 1). Full video of the committee, Last week the Congressional Budget Office released its ten-year estimates for the mandatory farm bill programs for Commodities (Title I), Conservation (Title II), the Supplemental Nutrition Assistance Program (SNAP, Title, [vc_row][vc_column][vc_column_text]The Agricultural Improvement Act of 2018 is scheduled to expire in the 2023 calendar, crop, and fiscal years, initiating the reauthorization process on the legislative calendar. Learn, Introduction Knowledge, experience, and collaboration work hand in hand with one another to improve farm output per unit of input (i.e., productivity). Report with summary of cost to produce beef in Illinois. A December 2020 graduate of Kansas State University in Animal Sciences & Industry and Agricultural Communications & Journalism, Day was active in Block & Bridle and Agriculture Communicators of Tomorrow, while also serving as a communications student worker in the animal science department. Central Illinois is further divided, Shows historical cost for the last 5 years and projections for next year. About the report. Report ID: . The latest in the Illinois Farm Management Handbook. Cash rents in 2022 are projected to average $309 per acre, an increase of $25 per acre from the 2021 level of $284 per acre. Custom rate guides are popular documents in those states that continue to do the survey legwork; unfortunately, many do not. Consider outsourcing certain field tillage passes. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. If corn and soybeans prices fall, 2022 net farm incomes could be very low. Lattz, Dale and Gary Schnitkey. Crop Insurance Decision Tool Spring 2023, Experience, Knowledge, & Collaboration: Why Good Managers Make an Effort to Improve, A Deeper Dive into the February 2023 CBO Baseline: Title I Commodities Programs, Trends in the Operational Efficiency of the U.S. Ethanol Industry: 2022 Update, Fertilizer Prices and Company Profits Going into Spring 2023, RP vs. RP-HPE Insurance Decision: Premium, Cash Flow, and Forward Contracting, The Russia-Ukraine War and Changes in Ukraine Corn and Wheat Supply: Impacts on Global Agricultural Markets, The FAO Food Price Index Drops in February, For the Eleventh Consecutive Month, Reuters: Ukraine Doesnt Plan to curb 2023/24 Wheat Exports, All Options Considered by U.S. Over Mexicos Corn Import Restrictions, AMIS: War in Ukraine, Black Sea Grain Deal- Uncertainty Continues to Hang Over Agricultural Markets, Crop Insurance Guarantee: $5.91 for Corn and $13.76 for Soybeans, Biden Administration Preparing Policy Shift on Rule to Boost Ethanol, Department of Agricultural and Consumer Economics. Still, we are projecting . The 2022 Iowa Farm Custom Rate Survey is intended as a guide in determining custom rates. Table 3 illustrates the computation of depreciation, interest, insurance and housing, and repairs. Machinery Cost Estimates: Harvesting. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. A 21-foot chisel plow used on 882 acres has a cost of $16.00 per acre, while a 27-foot chisel plow used on 1,134 acres has nearly the same cost at $15.90 per acre. 2H8so:e`!g[ a Although she spent an equal amount in farm machinery as she did in the cattle barn as a child, Day developed a bigger passion for the cattle side of the things. For several common tillage operations, the average farmdoc machinery use rate is shown in Table 1 next to the corresponding average, median, minimum and maximum custom rates from the Iowa survey responses. Based on the above comparisons, the following suggestions result: Further note that that these decisions are longer run in nature as well. Fortunately, ag economists at the University of Illinois keep up on all those numbers, and have an entire listing of costs for various field operations located on their Farmdoc website. 7 ag stories you cant miss March 3, 2023, Jill Reiter, Virginia State FFA Vice President, Soymeal rally sends soybeans higher on the week. 2017 Indiana Farm Custom Rates." Purdue University, Center for Commercial Agriculture, May 2017. Moreover, our return estimates do not suggest large changes in acres from 2021 to 2022. %%EOF Ag Decision Maker A3-10, Iowa State University Extension and Outreach, Department of Economics, March 2020. Table 1 illustrates the computation of depreciation, interest, insurance and housing, and repairs. A comparison of the two sets of rates provides a baseline that can be used to evaluate costs of owning equipment and performing field operations versus outsourcing. We are grateful to the 97 survey respondents who provided information for this publication. "Estimating Farm Machinery Costs." "2022 Crop Budgets Contain Higher Costs." Langemeier (2017) and Plastina and Johanns (2017) indicate that the custom rate for field cultivating is approximately $12.75 to $15.25 per acre. The latest on Farm Management along with the Farm Management Handbook. Salvage value is an estimate of the sale value of the machine at the end of the economic useful life. 2431 0 obj <> endobj Michigan State University Extension June 2019. What impact would a recession have on farming? Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. farmdoc daily (10):147, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 11, 2020. These . Iowa State University custom farming surveys are useful for outsourcing decisions. Gary Schnitkey, Carl Zulauf, Krista Swanson, and Nick Paulson - Gary Schnitkey - Illinois crop budgets for 2022 have been revised from their initial release in July. Salvage values for the tractor and implement were assumed to 30 percent of the purchase prices. These decisions are complex because a decrease in one type of expense may be offset by an increase in other costs, or a change in expected yield. Check Out Custom Rates. Still, overhead costs increased from $122.90 per acre to $126.10 per acre. Machinery Cost Estimates: Tractors. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. 2453 0 obj <>/Filter/FlateDecode/ID[<7EEAAD7FB86E6843A8A58DCD32D3470D>]/Index[2431 44]/Info 2430 0 R/Length 103/Prev 175604/Root 2432 0 R/Size 2475/Type/XRef/W[1 2 1]>>stream Estimated machinery costs often are used in setting custom rates where one individual performs a field operation for another individual. Edwards, William. Corn prices have been increased from $5.30 per bushel in August, In 2021, the total noncapital living expenses of 1,213 farm families enrolled in the Illinois Farm Business Farm Management Association (FBFM) averaged $85,828or about $7,200 a month for each family, In the August version of the 2023 Illinois Crop Budgets, wheat plus double-crop soybean is projected to be much more profitable than stand-alone corn and stand-alone soybeans in southern Illinois., Illinois crop budgets for 2022 have been revised from their December release (farmdoc daily, December 7, 2021). Farm Progress Show annually hosts more than 600 exhibitors displaying new farm equipment, tractors, combines and farm implements; seed and crop protection products; and many additional farm supplies and services. These estimates are useful for determining custom rates and for analyzing machinery costs on farms. Some cash rents will not increase, while others will have much larger increases than $25 per acre. The following comparisons are relevant to farms who already own newer tillage equipment or those who are considering a purchase while aiming to manage costs effectively. The computations of interest, insurance and housing, and repair costs assumed that the self-propelled sprayer had one-half of its useful life left. 164 0 obj <>stream This report is based on farm income and earnings data on Illinois farms. Schnitkey, G., N. Paulson, K. Swanson, C. Zulauf and J. Baltz. Includes tractor overhead, platform overhead, fuel and lube, and labor: Combining only for corn at $37.60 per acre, Combining only soybeans at $32.60 per acre, Grain cart for soybeans at $7.80 per acre. %PDF-1.5 % Day currently resides back home where she owns and operates Day Cattle Farm with her younger brother, Chayton. These projected prices were based on prices from Chicago Mercantile Exchange (CME) futures contracts. A way for reducing these costs is outsourcing the equipment, thereby allowing the individual performing the operation to perform the operation over more acres, and thereby lower total costs. One of the best resources for average custom rates is the annual Iowa Farm Custom Rate Survey that is coordinated and analyzed by Iowa State University. This reduction generally will come from long-run decisions on replacement of equipment. Substantial increases in list prices of machinery occurred between 2019 and 2021. The information in table 1 was used to help compute the total machinery costs for field cultivation on the case farm in table 2. Farmers will again have until March 15 to make commodity title program selections. According to Lattz and Schnitkey (2017b), the field cultivator represented in tables 1 and 2 can cover 29.1 acres per hour. Unlike fuel and labor costs which vary with use, depreciation and interest costs vary little with use. Fortunately, ag economists at the University of Illinois keep up on all . Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana . Formulas are used to estimate each cost, and the purchase price enters those formulas. The estimated machinery costs can also be useful when determining what equipment has the greatest economic return to the farm as compared to what it would cost to outsource the associated task. Tillage operations are typically used to prepare a desirable seedbed, reduce weed growth, incorporate fertilizer, or improve soil conditions. Crop Insurance Summary of Business Tool (Sheet), Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Post Application Coverage Endorsement Tool, Biomass Crop Budget Tool Miscanthus and Switchgrass, Illinois Soil Productivity and Yield Utilities, Illinois Crop Budgets and Historic Returns. Liquid fertilizer applicator at $23.50 per acre. Also includesgeneral updateson farmdoc publications and events. FAST aids users in performing financial analysis, assessing investment decisions, and evaluating the impacts of various management decisions. Economic useful life is not necessarily the same as service life. Study examines impact of beer sales in Colorado, Quick Takes: Cover crop program, Iowa Pork leaders, scholarships and more, 2023 meat production expected to decline 1%. University of Illinois ag economists publish machinery costestimates intended to represent the actual costs associated with individual farm field operations, which can provide a baseline for setting a custom rate to ensure that costs are covered. Schnitkey, G., N. Paulson, K. Swanson and C. Zulauf. The salvage value for the self-propelled sprayer is assumed to be 30 percent of the purchase price. It would likely not be cost effective for an average sized farm to own all types of tillage implements, aside from situations where the equipment is older and fully depreciated. This information is intended to give farmers looking to hire a custom operator or custom operators a starting point in negotiating a price for various services. Fuel costs will vary with each operations fuel use. Many farms may have tillage implements that have been on the farm for generations, are fully paid for and fully depreciated. 2017 Indiana Farm Custom Rates." Respondents were recipients of a mailing by the Oklahoma Field Office, USDA-NASS. We provide machinery cost estimates which may be helpful in setting custom rates. These decisions may also be dependent on requirements of a landlord or business owner for certain practices to be done and concern over the ability to outsource in a timely manner when the task needs completed. In all cases, estimated costs went up and ranged from 2% to 19%. Using this information, the total machinery cost per acre was $9.58. Fortunately, ag economists at the University of Illinois keep up on all those numbers, and have an entire listing of costs for various field operations located on their Farmdoc website. ) Annually, Iowa State University surveys those who hire and/or perform custom farm services and compiles a report of results. Depending on your situation, you may want to consider the following spraying and ammonia application total costs from 2019: Self-propelled at $4.40 per acre.
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