Whether landowners or land renters, many farmers hire some custom machinery work for their farm business each year. Some farmers perform custom work for others. What is a fair rate to charge for custom work? What is a fair rate to pay for it? Also, some farmers rent machinery or perform other services.

To provide information on what the going rates are for custom work and rentals, Iowa State University conducts the Iowa Farm Custom Rate Survey each year. Results of the 2017 survey were compiled and released in March.

The survey questionnaire was sent to 334 people via U.S. mail and 107 people via email in January. A follow-up reminder was sent. There were 152 usable responses from Iowa farmers, custom operators and farm managers. Of the respondents participating, 21% perform custom work, 13% hire work done, and 41% indicate doing both. Also, 1% indicated doing none, and 25% did not indicate whether they perform custom work or hire custom work.

Results of the survey are in a publication, “2017 Iowa Farm Custom Rate Survey,” FM 1698 Revised, available from the ISU Extension Store online or from county Extension offices. You can also download the publication from the Ag Decision Maker site.

ISU Extension economist Alejandro Plastina and ISU program specialist Ann Johanns conducted the survey, compiled the data and wrote the publication.

Use these rates as a guide
For each operation, 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 maximum values to avoid reporting outliers.

For example, for corn harvesting, the average charge is $35.05 per acre, median is $35, and range is $20 to $60. Number of responses was 105. That’s for regular corn combining. For a corn combine with a chopper head, the average charge is $41.35 per acre, median is $40 and range is $29 to $63 — based on 44 responses.

The reported rates are expected to be charged or paid in 2017, including fuel and labor. Average price for diesel fuel was assumed to be $2.15 per gallon.

This rate schedule is intended only as a guide, says Plastina. Actual custom rates may vary according to availability of machinery in a given area, timeliness, operator skill, field size and shape, crop conditions and performance characteristics of the machine being used.

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

Rental rates for some machinery items are shown in the last section of the publication, along with a worksheet for estimating rental rates for other items not surveyed. Click here for links to custom rate survey information for other states.