One of the most frequently requested sources of information from Western Ohio Extension offices is the Ohio Farm Custom Rates Fact Sheet. Due to a lack of proper equipment, not having enough time or not being experienced in a particular operation, farmers often hire someone else to perform a task. A farm custom rate is the agreed to price by a custom work provider to perform requested tasks for a farmer client.
Rates in the survey are based on a statewide survey of farmers, custom operators, farm managers and landowners. The reported figures, except where noted, include the listed implement and tractor if required, plus all variable machinery costs including fuel, oil, lube, twine, etc., and the labor for the operation.
The fact sheet reports rates in columns under headings of low, average and high. Some of those have a wide range. Stated possible explanations for the range are the type or size of equipment used, size/shape of fields, condition of the crop (for harvesting operations), the value of the labor or the combination of the labor and equipment used. In addition, some custom rates are provided at reduced rates due to family or partner relationships, crop share lease arrangements, or if reduced price custom work might improve the possibility of eventually securing the custom farmed acreage in a rental or purchase agreement.
Obviously, fuel prices also have an impact on custom rates, and the suggested rates may fluctuate based on significant movements in fuel costs. For the Ohio Farm Custom Rates 2010 Fact Sheet, the approximate price of diesel fuel at the time of the survey was $2.50 per gallon for off-road (farm) usage. With fuel prices substantially higher now, rate charges are more likely be higher than reported in the 2010 Fact Sheet.
Barry Ward, leader of production business management at the Ohio State University Extension requests that Fact Sheet users and others please download the Ohio Farm Custom Rates 2012 survey and respond even if only know a few rates are known. Actual up-to-date rate information is desired, either what was paid to hire work or what was charged if custom work was done. Custom rates should include all ownership costs of the implement and tractor (if needed), operator labor, fuel and lube. If fuel is not included in your custom rate charge, there is a place on the survey to note this. Areas to be surveyed include soil preparation, fertilizer application-ground, chemical control of weeds or insects (materials not included), mechanical weed control, aerial application (materials not included), planting operations (no seed or material furnished), grain harvest, grain storage, drying and handling on-farm, custom farming (all machinery operations for tillage, planting, spraying, tending & harvesting), silage harvest, hay or straw harvest, manure application and hired labor. Custom rate information is also requested on drainage installation, miscellaneous services (ranging from bush hogging to grinding feed, fence building, income tax preparation, ditch cleaning, snow removal, sheep shearing, livestock hauling, crop scouting, soil testing, rock picking and power washing). You can access the survey at: http:// aede.osu.edu/programsandresearch/osu-farm-management/publications
Surveys can be completed and emailed to ward.8@osu.edu, faxed to 614-292-4749 or mailed to: Barry Ward, The Ohio State University, Department of AEDE, Agricultural Administration Building, 2120 Fyffe Road, Columbus, Ohio 43210-1067
Readers with questions or comments for Roger Bender may write to him in care of this publication. |