custom rates and machine rental rates used on illinois ...chiselplow 1.27(31) rotarytiller 2.25(4)...

630.7

IL6c

no

c.5

1070

University of

Illinois Library

at Urbana-ChampalgnACES

a. 630.7

Custom Rates and

Machine Rental Rates

Used on Illinois Farms in 1971

University of Illinois at Urbana-Champaign

College of Agriculture Cooperative Extension Service Circular 1070

Custom work and machine rental enable farm-

ers to obtain the benefits of specialized machines

that they cannot economically own or operate with

the small volume of work on their farms. Theowners of these machines and those who hire the

use of them are interested in knowing what rates

are fair to both parties. One guide is the rates that

are currently being charged. The other is the cost

of performing the operation.1

This publication reports the rates used in Illinois

in 1971, as measured by a survey in June, 1971.

Each extension adviser in agriculture distributed

15 copies of a questionnaire to individuals hiring

custom work or performing it for others and to in-

dividuals renting or renting out implements. These

people were asked to report the rates they paid or

charged in 1971 for custom work or for machine

rental. More than 480 questionnaires were returned

and were used to calculate the rates given in the

tables. The number of reports is included for each

operation to indicate the reliability of the rates

quoted.

Machine-Rental Rates

The rates charged for only renting farm ma-

chinery, with no other charges included, are given

in Table 1. These are reported only for the state

as a whole because there were not enough reports

to justify summarizing the data by areas.

Custom Rates

The custom rates reported in Table 2 include the

charges made for the use of the machine, the time

of the operator, necessary mechanical power, other

supplies furnished, such as tractor fuel, wire, or

twine for baler, and an allowance for risk and over-

head. The cost of materials applied, such as seed or

chemicals, is not included. Rates are given for the

1 Cost information and methods of estimating costs are

given in "Figuring Custom and Machine Rental Rates," Work-sheet No. 6 of Circular 1065.

state as a whole and for the four areas shown in

the map below.

The range shown for each operation indicates

that custom rates often vary considerably within a

geographical area. One reason for the variation is

the time required to perform the operation. This is

influenced by topography, size and shape of the field,

crop yields, weather during the year, size of the

machine, and condition of the crop. Competition in

the local area also affects the range— if many ma-chines are available in a local area the rates will

drop, and where there are few implements the rates

will be higher.

Custom Contract Farming Rates

The survey also collected a few reports on rates

charged for custom contract farming. Custom con-

tract farming is a new development in which the

custom operator contracts with a landowner to per-

Prepared by R. A. Hinton, Associate Professor of Farm Management, andMelvin E. Walker, Jr., Graduate Assistant in Agricultural Economics

Urbana, Illinois December, 1972

Issued in furtherance of Cooperative Extension Work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture.

JOHN B. CLAAR, Director, Cooperative Extension Service, University of Illinois at Urbana-Champaign.

15M—12-72—23336

form all of the field operations for the crops on his

farm. Thirty-two farmers who engaged in custom

farming reported the rates they charged. There

were three methods of arriving at charges:

1. The sum of the charges for the amount of

each operation actually performed in producing the

crops.

2. A flat rate for performing all the field opera-

tions necessary to produce the crops.

3. Either Method 1 or 2 plus an incentive bonus.

Fourteen of the farmers used the first method of

summing the charges for each individual operation

performed.

Those who used the flat-rate method reported the

following charges:

No. of Ave.

rpt. rate RangeCorn, per acre 17 $32.12 25-40

Soybeans, per acre 6 29.58 25-32

Several reported that additional charges were

made for management services, farm maintenance

work, or other special tasks performed beyond the

usual field operations. Incentive bonuses for a good

job varied from a premium for getting the crop

planted before a specified date to a few cents per

bushel over a certain yield. The amounts and speci-

fications for bonuses were so varied that an average

would be misleading.

Table 1.— Rental Rates Paid for Use of Farm Machines,Illinois, 1971

State

Table 1.— Concluded

State

Aver.(and No.

of rpt.)

Mostfreq.

rate

Usualrange

TILLAGE MACHINERY,per acre

Plows 1.42(/<5)Disks 1.31 (id)

Stalk shredder 1 .36(27)Field cultivator 1 . 24 (18)Chisel plow 1.27(31)Rotary tiller 2.25 (4)Row cultivator 1 . 25 (17)Rotary hoe 74(18)

PLANTING MACHINERY,per acre

Corn planter 1 .64(77)Grain drill 99(17)Broadcast seeder 83(11)

FERTILIZING MACHINERY,per acre

Anhydrous applicator 73 (35)Liquid fertilizer applicator 86 (23)Dry fertilizer spreader

flow type 64 (12)broadcast type 47 (30)

(dollars)

1.501.001.001.001.001.501.00.50

1.50.50

1.00

.50

.50

.50

.50

1-2.50-2.50-2.50-2.50-2

1 . 50-4.50-2

.30-1.50

1-2.50.30-2

.50-1.50

.25-1

.50-1.50

Aver.(and No.of rpt.)

Mostfreq.

rate

Usualrange

.25-1

.25-1

SPRAYING MACHINERY,per acre

Tractor-mounted sprayer 1 .03 (9)Trailer sprayer 78 (17)Self-propelled, high clearance

sprayer 1 . 42 (16)

FORAGE-HARVESTINGMACHINERY

Mower, per acre 1.11 (9)Mower and crusher, per acre .... 2.01 (19)Hay conditioner, per acre 1 . 18(23)Windrower, per acre 1 .07 (7)Hay rake, per acre 63 (15)Hay baler, per day 35.33 (3)Forage harvester, per day 62.50 (4)Blower, per day 15.00 (5)Self-unloading forage wagons

per load 93 (5)per day 16.25 (4)

GRAIN-HARVESTINGMACHINERY

Corn picker, per acre 3.59(77)Corn picker and tractor, per acre 5 . 33 (12)Picker-sheller, per acre 6.00 (6)Picker-sheller and tractor,

per acre 6.50 (5)

Self-propelled combine, per acrewith grain head 5 . 70 (29)with picker head 5 . 96 (32)

Combine pull type, per acre

only 3.50 (5)

with tractor 5.44 (4)Grain wagons

per bushel 019(P)per day 8.75 (4)

Grain elevator, per bushel 019 (9)

Grain auger, per bushel 009 (9)

Crop dryer, per bushel 052(8)

TRACTORS3 plow, per day 21.50 (9)

4 plow, per hour 4.30 (5)

per day 32.44 (9)

5 plow, per hour 5 . 93 (7)

per day 45.70(70)

MANURE-HANDLINGMACHINERY

Loader with tractor

per load 83 (3)

per day 27.00 (7)

Spreader onlyper load 50 (J)

per day 14.86 (7)

Liquid manure spreader only,

per day 21.75 (4)

POSTHOLE DIGGER, per hole

Only 09(77)With tractor 20(7i)

BRUSH DISK, per acre 1.78(70)

BUSH HOGper acre 1 .45 (7)

per day 14.00 (3)

ROTARY WEED CUTTEROnly

per acre 1.57 (7)

per day 21.67 (3)

With tractor, per day 31 . 25 (4)

CHAIN SAW, per day 17.44 (9)

STEAM CLEANER, per day. . 21.56 (8)

(dollars)

1.00 .50-1.50.50 .30-1

1.50 1-2

1.002.001.001.00.50

15.00

.50-1.501-3

.50-1.50

.50-2

.30-120-4540-755-20

1.0015.00

.50-1.1010-25

4.005.00

2-64-74-8

5-8

5.006.00

4-7.504-7.50

2-53-8

.02

.02

.01

.05

.01-. 035-10

.01-. 05.005-. 01.02-. 10

25.00

6'00

40.00

15-402.50-7

20-454-725-60

25.00.50-1

20-50

12^00 5-25

20.00 20-25

.10

.15

.05-10

.10-. 35

2.00 1-2.75

1-2

10-20

1.50 1-2

10-3015-50

15.00 10-32

20.00 15-30

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