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Custom rates for field work decline slightly

A new report shows custom rates for farm work have declined slightly.

Iowa State economics professor Alejandro Plastina says the survey sampled more than 180 custom operators.

“The average percentage change from last year was about 2.5, 2.6 percent.”

When averaging the rates of common custom work like tillage, planting and harvesting, Plastina says that’s a savings of about five cents compared to a year ago.

He tells Brownfield the decline in fuel prices has had a significant impact.

“Most of the declines are associated with equipment that has somewhat of an intensity of use of gas.  For example, horse power per hour has declined by 22 percent from last year.”

While most custom rates declined, Plastina says there were small increases involving work associated to livestock production.

The median custom farming rate for corn when factoring in tillage, planting and harvesting costs, is $130 per acre.

The average rate for soybeans is $115 per acre and $92.50 for small grains.