As would be expected with increasing fuel costs, average 2008 custom rates for farm work have also risen, compared to 2007 and 2006 custom rates. Most custom rates for farm work in 2008 are listed at 5-10% above the rates a year earlier, with an average increase of about 7%. In addition to higher fuel costs, increasing cost for new and used machinery is also a factor in the higher custom rates.

These results are based on the annual Iowa Farm Custom Rate Survey that is coordinated and analyzed by Iowa State University. The survey sampled 185 custom operators, farm managers and ag lenders on what they expected 2008 custom farm rates to be for various farm operations. The survey summary lists the average custom rate and the range for various tillage, planting, fertilizer and chemical application, grain harvesting and forage harvesting functions on the farm. The survey also includes many miscellaneous faming practices, lists average machine rental rates for some equipment and includes a formula for estimating average machinery rental rates. It also lists average custom farming rates for corn, soybeans and wheat. Over the years, the average custom rates for farm operations in southern Minnesota have been very close to the average Iowa custom rates. The complete 2008 Iowa Farm Custom Rate Survey is available online at: http://www.extension.iastate.edu/agdm/crops/pdf/a3-10.pdf

All listed custom rates in the Iowa survey results include fuel and labor, unless listed as rental rates or otherwise specified. These average rates are only meant to be a guide for custom rates, as actual custom rates charged may vary depending on continued increase in fuel costs, availability of custom operators, timeliness, field size, etc. Following are the average custom rates for some common farming practices for 2008, based on the Iowa Farm Custom Rate Survey:

Custom Farming Rates:
(Includes tillage, planting and harvesting costs)
· Corn – $94.10/acre (range: $55-130)
· Soybeans – $83/acre (range: $54-110)
· Small Grain – $78/acre (range: $68-90)

Tillage:
· Moldboard plow – $13.60/acre
· Chisel plow – $13.70/acre
· V-ripper (deep tillage) – $16.30/acre
· Field cultivator – $10.10/acre
· Tandem disk – $10.20/acre
· Row cultivator – $8.60/acre
· Chopping cornstalks – $9.50/acre

Planting:
· Planter with attachments – $14.60/acre
· Planter without attachments – $13.20/acre
· No-till planter – $15.30/acre
· Soybean drill – $13.75/acre
· Grain drill – $12/acre

Harvesting Grain:
· Corn combine – $28.10/acre ($38/acre with grain cart and truck)
· Soybean combine – $27.10/acre ($34.40/acre with grain cart and truck)
· Small grain combine – $25.30/acre
· Grain cart (in field) – $5.90/acre
· Hauling grain (on farm) – 7¢/bu.
· Grain auger use (on farm) – 5¢/bu.

Harvesting Forages:
· Windrowing hay – $11.40/acre
· Hay baling (small square bales) – 48¢/bale
· Hay baling (large square bales) – $8.95/bale
· Hay baling (large round bales) – $9.20/bale
· Silage chopping – $35.90/hour/row
· Haylage chopping (7-ft. head) – $86.55/hour

Editor’s note: Kent Thiesse is a former University of Minnesota Extension educator and now is Vice President of MinnStar Bank, Lake Crystal, MN. You can contact him at 507-726-2137 or via e-mail at kent.thiesse@minnstarbank.com.