These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and the labor for the operation. Overhead includes depreciation, interest, insurance and housing, and repairs. 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. For the best experience on our site, be sure to turn on Javascript in your browser. Download Full Report Contact Glennis McClure Extension Educator Farm and Ranch Management Analyst 402-472-0661 gmcclure3@unl.edu 1993 to document.write(new Date().getFullYear()) Curators of the University of Missouri, all rights reserved, DMCA and other copyright information. In calculating costs, for example, 300 hours of use were assumed for tractors. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status. Rates in this guide reflect each respondents judgment of a normal job. Fuel use on a 310 horsepower tractor is estimated at 13.6 gallons per hour. Table 2 shows estimated costs in 2017 and 2019 for several different tractors sizes, combining corn and soybeans, a field cultivator, and a conventional planter. For the best experience on our site, be sure to turn on Javascript in your browser. Lattz, D. and G. Schnitkey. The rates reported in this guide summarize a statewide survey conducted online and by solicitations of University of Missouri Extension specialists in the spring of 2023. June 10, 2019. List price and interest rate increases resulted in an increased in overhead costs from $110.90 in 2017 to $122.90 in 2019 (see Table 1). Fuel costs will vary with each operation's fuel use. On corn, for example, interest costs are projected to decline from $14 per acre to $12 per acre. These results have also been compared to previous custom rates surveys to see if the direction and magnitude of changes seems reasonable. The $413 per acre projection would be $42 per acre higher than the 2021 projection of $371 per acre. Costs include overhead (depreciation, interest, insurance, housing and repairs), fuel and labor. The last time machinery costs were released on farmdoc was in 2017. However, the results presented here have been compared to custom rates guides in Iowa to see if our rates are in line with their rates. FAST aids users in performing financial analysis, assessing investment decisions, and evaluating the impacts of various management decisions. The site navigation utilizes arrow, enter, escape, and space bar key commands. Custom farming rates from around the U.S. March 23, 2021 08:00 AM. 2019 Custom Machine and Work Rate Estimates, 1998 Childrens Online Privacy Protection Act (COPPA). The report also lists hourly rates for tractor rentals as well as farm labor costs. The report also lists hourly rates for tractor rentals as well as farm labor costs. This publication reports custom rates based on a statewide survey of 377 farmers, custom operators, farm managers, and landowners conducted in 2020. Further refined estimates for corn-after-corn, corn-after-soybeans, soybeans-after-corn, soybeans-after-soybeans, wheat, and double-crop soybeans are shown in the publication entitled 2022 Illinois Crop Budgets. Without a return of these ad hoc programs, returns in 2021 will be below those experienced in 2018 through 2020 if prices return to 2014-2020 prices without having yields well above trend. However, the remaining portion of the growing season may impact yields. Fuel use on a 310 horsepower tractor is estimated at 13.6 gallons per hour. For soybeans, a return to the 2014-2020 average results in a -$18 per acre return, well below the $11 low set in 2000. Schnitkey, G. Crop Budgets, Illinois, 2022. Illinois Farm Management Handbook. These estimates are useful for determining custom rates and for analyzing machinery costs on farms. Cost Management: Harvest Operations - farmdoc daily The Number reporting and Range of responses columns are important. Calculate your own costs carefully before deciding the rate to charge or pay. The Average rate column indicates the average charge for all of the rates in that row. Estimated machinery costs often are used in setting custom rates where one individual performs a field operation for another individual. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Fewer people respond to this survey every time it is taken every three years. Research Analyst, Agricultural Business and Policy Extension, Raymond E. Massey From time to time, Prairie Farmer gets requests for the custom rate estimates on various field operations. Due to the fuel price increase, fuel costs for the 310 horsepower tractor increased from $33.60 per hour in 2017 to $37.30 per hour in 2019 (see Table 1). Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Machinery costs would have been higher had not interest rates been reduced from 2019 to 2021. The2019 Custom Machine and Work Rate Estimatesfact sheet from Michigan State University Extension is now available. Tab will move on to the next part of the site rather than go through menu items. Per acre cost estimates are made based on assumptions concerning prices, interest rates, and use. Learn more FAST (Farm Analysis Solution Tools) are a suite of Microsoft Excel spreadsheets designed to assist those in agriculture make better decisions via user-friendly computer programs. Estimated machinery costs often are used to set custom rates when one individual performs a field operation for another individual. 61801, Communications and Information Technology, Our Impact in Agriculture and Natural Resources, Our Impact in Community & Economic Development, Our Impact in Illinois Nutrition Education Programs, Our Impact in Integrated Health Disparities, Backyard Beef: A guide to small-scale feeding, 2023 University of Illinois Board of Trustees. 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. Custom rates in a given area may vary significantly according to timeliness, operator skill, field size and shape, crop conditions, the performance characteristics of the machine being used, the relationship between the custom operator and the person needing custom work done, competitive pressures, and economic circumstances of the custom operator. The fact sheet includes custom rates averaged from all the surveys and maximum and minimum rates reported. Despite these high costs, corn and soybean production is projected to be profitable in 2022 because projected prices are considerably higher than average prices from 2014 to 2020. Per hour costs increased by $16.80 per hour to $181.10. %%EOF University of Illinois Extension am A return to 2014-2020 average prices will cause negative 2022 projected farmer returns if yields remain at or below trend yields. Without a return of these ad hoc programs, returns in 2021 will be below those experienced in 2018 through 2020 if prices return to 2014-2020 prices without having yields well above trend. An additional amount for profit should be added to our cost estimates, as we have not added an amount for returns. In this situation, the extremes may have unduly influenced the average reported. Lattz, D. and G. Schnitkey. The purchase price is assumed to equal 85% of the list price of the tractor. If you are figuring what it costs you to make hay on your farm, add mowing, raking . )n6skjsic;9sizAlItFZ&\"i[Hz0^th |BJ!$0.Fc;z -`fLVacP;a A01|pZ AAs A return to average 2014-2020 prices will result in negative 2022 returns if yields are at or below trend. FAST aids users in performing financial analysis, assessing investment decisions, and evaluating the impacts of various management decisions. 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. %PDF-1.6 % The diesel fuel price was increased from $2.50 per gallon in 2019 to $2.75 per gallon in 2021. 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. View all agriculture and environment programs, Continuing Education for Health Professions, Living a Healthy Life with Chronic Conditions, Agricultural Business and Policy Extension, Exceed - Regional Economic and Entrepreneurial Development, Mid-America Trade Adjustment Assistance Center, Missouri Small Business Development Centers, Missouri Procurement Technical Assistance Centers, Veterinary Extension and Continuing Education, Missouri Council for Activity and Nutrition, equal opportunity/access/affirmative action/pro-disabled and veteran employer. Custom farming rates from around the U.S. - Hay and Forage The 2020 Nebraska Farm Custom Rates Report is now available at farm.unl.edu/customrates. For 2020, revenues and costs are summarized from grain farms enrolled in Illinois Farm Business Farm Management (FBFM). Farm Progress is part of the Informa Markets Division of Informa PLC. The survey was conducted in 2020, and was expanded to include more custom operations and equipment rentals than the previous versions. Higher costs have led to a situation were higher prices and above trend yields are needed for profitability. More detail on the approaches used to estimate overhead costs are given in the Machinery Cost Estimates: Tractors publication. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464). Obviously, much can change between now and delivery in both years. Yields for 2021 have been raised slightly from trends, as the growing season appears favorable across much of Illinois. Prices: Prices for 2021 and 2022 are based on forward bids and prices on Chicago Mercantile Exchange futures contracts.