2022 Nebraska Agricultural Custom Rates with Statewide Survey Summary

Cornhusker Economics June 29, 2022
2022 Nebraska Agricultural Custom Rates with Statewide Survey Summary

 

By Glennis McClure

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With rising operational costs for agricultural machine hire and services, rates reported on the 2022 University of Nebraska-Lincoln Custom Rates Survey were mostly higher than rates reported on the 2020 survey, ranging from 6% to nearly 20% greater on some common custom services. For example, state average custom rates for harvesting corn and soybeans per acre increased to $41.63 and $40.18 from $39.34 and $37.29, respectively, two years ago.  Planting row crop average rates across Nebraska range from $20.17 per acre (no coulters, without band applicator) to $23.50 per acre for ridge planting with band applicator, up 6% to 8% from 2020. Table 1 provides a summary of popular machinery operations for hire, or the rates most reported on from the Nebraska survey, and includes rate averages, the ‘most common’ reported rate per operation, and the range of custom rates charged per operation in Nebraska.   

Agricultural custom rate charges can vary across the state; therefore, the Nebraska Custom Rates Report provides rate details from survey responses grouped by Nebraska Agricultural Statistics Districts.  

Several factors contribute to rate differences reported by survey participants, including field and job sizes, soil conditions, and the number of responses for the various operations. Some operators may charge lower than market rate prices to neighbors or relatives. Rates may change from year to year due to expense differences and local market forces. Determining appropriate charges for custom machine hire and agricultural services may include consideration of various elements including current market rates as reported in the custom rates survey report, market demand in the area for specific types of custom work, and availability of services. In addition, machine owners and custom operators should consider their own machine ownership and operating costs to adequately price custom rate services.

The UNL Center for Agricultural Profitability has developed the Agricultural Budget Calculator (ABC) program to assist producers in tracking their enterprise costs including machinery and equipment used in their agricultural operations.  Custom operators can utilize the online program, agbudget.unl.edu to enter their machinery and equipment information such as purchase value, length of anticipated ownership and other key information, along with their actual fuel prices, labor costs and estimated annual repair expense for each machine to determine operation costs per acre.  Fuel, repair, and salvage value cost factors and calculations from the American Society of Agricultural and Biological Engineers (ASABE) are utilized in the ABC program. The ABC machinery cost calculations for machinery and equipment ownership and operation costs, combined with the Nebraska Custom Rates Report data, should assist custom operators in setting charges that are comparable in the marketplace while covering all costs. 

With the growing investment cost of agricultural machinery and equipment, and often with the uncertainty in labor availability, many Nebraska farms and ranches utilize and pay for custom services. The biennial University of Nebraska-Lincoln Custom Rates Survey report has wide utilization by those who perform custom hire services and by producers who pay for services. The survey is distributed both by mail and electronically to Nebraska farm and ranch managers and agricultural service companies that have indicated that they have provided some type of custom machine, equipment rental, or service in the state and have charged for such services.

There were 193 survey responses received and tabulated in the 2022 report. Rates are included in the full report when at least three or more survey respondents provide their current rates charged for machine hire operations or services. Rates reported from the survey should reflect the cost of the machine, power unit, fuel, and labor unless otherwise stated. Custom contract farming, planting, fertilizer, and chemical application rates do not include material or input expenses. For baling, however, supplies such as wire, twine, or net wrap are included in the rates charged. Refer to the custom rate description in the report to understand cases where the operation does include additional inputs.

Full summaries from the survey, including regional rates for the eight Nebraska Statistics Districts and the overall state, are published as a University of Nebraska-Lincoln Extension Circular (EC) 823 and available online at: cap.unl.edu/customrates. The information presented in the state summary and full report should be used only as a guide when determining what to charge or pay for custom operations.

 

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Glennis McClure

Associate Extension Educator
Farm & Ranch Management Analyst
Department of Agricultural Economics
University of Nebraska-Lincoln
gmcclure3@unl.edu
402-472-0661

Table 1                    STATE SUMMARY OF THE MOST POPULAR MACHINERY OPERATIONS
LAND TILLAGE OPERATIONS Average Rate Most Common Range Number Reporting
Disk Harrowing, Primary (heavy), rate per acre 16.69 20.00 10.00-25.00 40
Disk Harrowing, Finishing (light), rate per acre 15.25 18.00 7.00-21.00 41
Moldboard Plow, rate per acre 23.14 28.00 16.00-28.00 7
Harrowing, Spike or Spring Tooth, rate per acre 11.33 - 7.00-16.00 6
Chisel Plow for Primary Tillage, rate per acre 17.67 20.00 12.00-20.00 6
Deep Chisel, rate per acre 21.93 25.00 12.00-35.00 14
Subsoil or Rip, rate per acre 22.71 25.00 12.00-35.00 21
Field Cultivator, rate per acre 15.08 15.00 7.50-21.00 33
Vertical or Turbo Tillage, rate per acre 16.78 18.00 10.00-25.00 20
Combination Tillage Operations, Finishing, rate per acre 17.19 15.00 12.00-28.00 13
Strip Tilling, rate per acre 18.54 20.00 15.00-22.00 13
Strip Tilling with Fertilizer Application, rate per acre 24.72 25.00 16.00-39.00 16
Stalk Shredder PTO Driven, rate per acre 14.88 10.00 7.00-30.00 13
Cultivation Tillage, Rotary Hoe, rate per acre 9.78 8.00 5.00-15.00 9
Cultivation Tillage, conventional, rate per acre 13.79 12.00 8.00-22.00 14
Cultivation Tillage, handling residue, rate per acre 13.88 12.00 8.00-24.00 16
Cultivation Tillage, hill or ditch, rate per acre 13.70 15.00 7.00-22.00 15
Rolling Stalk Chopper Not PTO Driven, rate per acre 10.18 12.00 7.00-12.50 11
PLANTING AND POST PLANTING OPERATIONS Average Rate Most Common Range Number Reporting
DRILLING
- Small Grains, conventional drill, rate per acre 18.42 15.00 12.00-30.00 18
- Small Grains, no-till drill, rate per acre 19.65 20.00 13.00-28.00 36
- Soybeans, conventional drill, rate per acre 20.88 20.00 15.00-30.00 8
- Soybeans, no-till drill, rate per acre 21.49 20.00 14.00-30.00 37
SEEDING
- Grass Seed, rate per acre 21.67 20.00 14.00-32.00 9
- Legumes, rate per acre 19.00 20.00 15.00-25.00 9
- CRP Ground, rate per acre 22.82 24.00 13.00-35.00 11
- Cover Crops - Drill, rate per acre 19.16 20.00 14.00-30.00 41
- Cover Crops - Broadcast, rate per acre 13.69 - 7.00-25.00 8
PLANTING ROW CROPS
- No coulters, with band applicator, rate per acre 22.14 20.00 15.00-40.00 21
- No coulters, without band applicator, rate per acre 20.17 16.00 15.00-35.00 18
- Coulters, with band applicator, rate per acre 22.27 22.00 15.00-40.00 28
- Coulters, without band applicator, rate per acre 20.41 20.00 15.00-35.00 22
- Ridge planting, with band applicator, rate per acre 23.50 25.00 15.00-32.00 34
- Ridge planting, without band applicator, rate per acre 21.74 20.00 16.00-27.00 23
HAYING AND BALING Average Rate Most Common Range Number Reporting
Mowing, rate per acre 16.67 15.00 10.00-20.00 12
Raking, rate per acre 6.54 5.00 2.00-12.00 28
Mowing and Raking when one rate quoted, rate per acre 16.75 20.00 6.00-24.00 6
Swathing with Crushing/Crimping, rate per hour 143.50 150.00 90.00-200.00 12
Swathing with Crushing/Crimping, rate per acre 16.23 15.00 10.00-20.00 31
Raking Cornstalks, rate per acre 8.93 7.00 5.00-20.00 14
BALING
- Small Square Bales with Twine Tie, rate per bale 1.27 1.00 0.90-3.00 8
- Large Round Bales Without Net Wrap, rate per bale 14.46 12.00 12.00-18.00 12
- Large Round Bales With Net Wrap, rate per bale 15.32 15.00 10.00-20.00 44
- Cornstalks Large Round Bales with Net Wrap, rate per bale 16.20 15.00 12.00-22.00 20
SMALL GRAIN HARVEST Average Rate Most Common Range Number Reporting
Windrowing Grain Crops, rate per acre 17.13 10.00 10.00-30.00 8
Combining Small Grains (no hauling), flat rate per acre 34.91 35.00 23.00-50.00 24
Hauling Small Grain to Local Storage, cents per bushel 0.15 0.15 0.05-0.26 26

Table 1                    STATE SUMMARY OF THE MOST POPULAR MACHINERY OPERATIONS
APPLICATION OF FERTILIZER Average Rate Most Common Range Number Reporting
Dry Fertilizer Solid Broadcast, inc. labor & applicator, rate per acre 7.89 7.50 5.00-15.00 26
Dry Fertilizer Variable Rate, rate per acre 9.04 8.00 6.00-16.00 20
Liquid Fertilizer Constant Rate, labor & applicator, rate per acre 9.53 10.00 6.00-16.00 22
Liquid Fertilizer Variable, labor & applicator, rate per acre 11.30 15.00 6.00-16.00 22
Anhydrous Ammonia, knife with coulters, rate per acre 17.08 18.00 7.50-25.00 36
INSECT, DISEASE, AND WEED CONTROL Average Rate Most Common Range Number Reporting
Spraying Weed Control, boom or recirculating, rate per acre 8.21 8.00 6.00-16.00 7
Spraying Weed Control, self-propelled sprayer, rate per acre 8.12 8.00 5.00-20.00 40
HARVESTING GRAINS & SOYBEANS Average Rate Most Common Range Number Reporting
Combining Irrigated Corn, flat rate per acre 41.63 40.00 30.00-60.00 83
Combining Irrigated Corn, flat rate per bushel 0.29 0.28 0.15-0.45 11
Combining Dryland Corn, flat rate per acre 38.82 35.00 20.00-60.00 80
Combining High Moisture Corn, flat rate per acre 47.55 45.00 32.00-70.00 29
Combining Soybeans, flat rate per acre 40.18 40.00 25.00-70.00 98
Combining Grain Sorghum, flat rate per acre 39.73 50.00 15.00-50.00 15
HAULING OPERATIONS Average Rate Most Common Range Number Reporting
HAULING GRAIN
- From Combine with Tractor and Grain Cart, rate per acre 6.93 5.00 5.00-10.00 7
- From Combine with Tractor and Grain Cart, rate per bushel 0.10 0.06 0.03-0.20 8
- Grain Truck to Storage or Elevator, flat rate per bushel 0.08 0.10 0.01-0.25 18
- Grain (above 16 miles), additional charge per bushel 0.08 0.10 0.01-0.25 18
- Dry Edible Beans to Storage or Elevator, rate per bushel 0.12 0.15 0.02-0.17 6
HAULING HAY
Loading and Moving Large Rounds with Tractor, rate per bale 3.06 4.00 1.00-5.00 12
HAULING SILAGE
- From Field to Silo by Truck, rate per hour 97.50 100.00 75.00-120.00 6
- From Field to Silo by Truck, rate per ton 3.64 4.50 2.50-4.50 7
MAKING SILAGE AND EARLAGE Average Rate Most Common Range Number Reporting
Corn Silage (field chopping, hauling, filling, packing), flat rate per ton 13.58 - 9.50-25.00 6
Corn Silage (field chopping and hauling), flat rate per ton 9.50 9.00 5.00-12.00 9
Corn Silage (field chopping only), flat rate per ton 6.07 4.50 4.50-8.00 7
OTHER CUSTOM SERVICES Average Rate Most Common Range Number Reporting
Grain Bin Storage, no air or electric charge included, monthly rate per bushel 0.04 0.04 0.01-0.10 14
Grain Bin Storage, with air or electric charge included, monthly rate per bushel 0.05 0.05 0.02-0.12 11
Clearing Cedar Trees, rate per metered hour 105.83 125.00 75.00-150.00 6
Heavy Equip. - Bulldozing / Clearing Land, rate per hour 163.18 180.00 70.00-250.00 11
Heavy Equip. - Excavating, rate per hour 181.36 200.00 65.00-250.00 11
Heavy Equip - Hauling - Dump Truck or Side Dump, rate per hour 99.22 120.00 48.00-150.00 9
Checking Pivots During Irrigation Season, rate per hour 25.83 25.00 9.50-50.00 9
Checking Pivots During Irrigation Season, rate per acre 13.00 10.00 2.00-25.00 10
Closing Pivot Tracks, rate per hour 100.00 75.00 25.00-250.00 12
Closing Pivot Tracks, rate per pivot 296.92 500.00 100.00-800.00 13
Skid Steer Loader Rent, rate per hour 71.67 50.00 50.00-120.00 6
Tractor Rent, 100-149 h.p., rate per metered hour 59.17 35.00 35.00-100.00 6
Tractor Rent, Greater than 250 h.p., rate per metered hour 90.00 100.00 70.00-120.00 7
Solid Manure Application, rate per ton 4.58 - 2.00-10.00 6

State sumary includes operations with six or more rates reported.
All units are in dollars unless specified.