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Study shows custom rates are steady for fertilizer applications

An ag economist at Purdue University says custom rates for fertilizer and chemical applications remain strong in 2025. 

Michael Langemeier says the latest Indiana Custom Rate Survey showed little to no changes in cost over the last two years.

“Some of the activities were actually relatively flat,” he says. “If you look at land preparation operations, those rates were very similar in 2025 compared to 2023. If you look at fertilizer applications, they were also quite similar.”

He tells Brownfield, “When we looked at the 2021 versus the 2023 results, we saw some fairly large increases in custom rates. There was some pretty high inflation, particularly related to input prices in agriculture.”

Langemeier says he expects custom rates to increase again in 2026 and 2027, which could create additional challenges for farm balance sheets in the coming years. 

AUDIO: Michael Langemeier, Purdue