Farm machinery costs and custom rates
Story Date: 9/5/2017

 

Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 9/1/17


Numerous farms that are either hiring a custom operator or providing custom rate services to other farms use published custom rate surveys. Though this information is very useful when establishing custom rates, it is prudent to compare your farm machinery costs per acre to custom rates. If your machinery cost per acre is relatively high, then a farm should consider using a custom operator rather than replacing their own machine. 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. This article compares machinery costs per acre for a case farm to custom rates associated with a field cultivation operation and a self-propelled sprayer operation.

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