Ron Plain, Agriculture Economics, University Extension
November 2006
The rates reported in this guide are based on a statewide survey conducted by mail in the fall of 2006. Farmers, agribusiness firms, aerial applicators and land improvement contractors responded to questions concerning rates they were actually charging for custom services —excluding the cost of materials being applied.
There is no assurance that the average rates reported in this guide will cover your costs for performing the service or that you will be able to hire a custom operator for the average rates shown. Calculate your own costs carefully before deciding the rate to charge or pay. Before entering into an a agreement, discuss with the other party all the details of the specific job to be performed.
Fuel prices have a big impact on custom rate charges. At the time of this survey, the average retail price of gasoline was about $3.00 a gallon, or 40¢ a gallon higher than when our 2003 survey was conducted.
Explanation of rates in this guide Rates reflect the respondents’ own judgment as to what they charge for a “normal” job. Rates for small jobs will be higher, sometimes much higher, than those reported in this guide. Custom operators may give special estimates for jobs that are abnormally large, small, or complex.
Some jobs show a wide range in rates. Possible explanations are topography, type of equipment used, location (distance to job), or different income needs of the full-time custom operator as compared with a farmer supplementing his income.
The “number reporting” and “range in rates” columns are important. Some items had very few responses or a wide range in rates, so the “average” may not accurately reflect rates in your area.
Ron Plain, Agriculture Economics, University Extension