Farmers using custom rate services and providing them are in a quandary about what to pay or charge this year, due to skyrocketing fuel costs. In May's American Agriculturist issue, we reported that custom rate costs were up an average of 8% over a year ago, based on the annual study conducted by the Pennsylvania office of the National Ag Statistics Service. You can key into that report by clicking on the Custom Rate button on the left side of this Web page.

You might also take a look at the 2008 custom rate guide for the Shenandoah Valley, prepared by Virginia Tech's Extension farm management agents. While not as extensive as Pennsylvania's, it lists a number of custom rate tasks not included in the Pennsylvania report.

For instance, it lists poultry litter spreading, livestock hauling plus fence building and repair. Livestock trucking averaged $3.17 per loaded mile with a two-ton truck, $2.51 per loaded mile with a gooseneck trailer and $3.35 per mile with a semi.

Click here, or you can find it on the Web at: www.ext.vt.edu/news/periodicals/fmu/2008-04/ShenandoahValley.html.  

Note: One practical solution to cover rising fuel costs is simply to have the user of the service provide the fuel or pay for the fuel as a surcharge.