Plastina said the survey is a useful starting point for negotiations and farm discussions, but it is not intended to be the sole factor used to set price. Based on the Iowa State data, average custom rates for tillage, planting and harvest operations in 2021 are expected to decrease by about 3 percent compared to the rates for similar operations in 2020. This could be the case in a year such as 2021, when the cost of machinery operation for diesel fuel, repairs, and labor have increased substantially from the beginning of the year until year-end. January: Overcast and [], LAKE CRYSTAL, Minn. Farmers in many areas of the United States, including several portions of Southern Minnesota, are having a very good profit year in 2021. Therefore, the statewide averages reported here might be quite different from the going rate in any given area. Diesel prices have increased by 20 percent in the last three years. The 2021 Iowa Farm Custom Rate Survey, conducted by Iowa State University Extension and Outreach, covers the amounts charged and paid for common crop and livestock services. Copyright 1995- The average cost for baling small square bales was $0.59 per bale, $9.35 for large square bales, $10.80 for large round bales without wrapping and $13.20 for large round bales wrapped. Iowa State University of Science and Technology. 0000014070 00000 n The information below is based on 122 responses and 3,389 custom rates provided by Iowa farmers, custom operators, and farm managers. 260 Heady Hall 0000040190 00000 n Note: All rates include fuel, repairs, depreciation, interest, labor, and all other machinery costs for the tractor and implement, unless otherwise noted. 0000039468 00000 n One of the best resources for average custom rates is the annual Iowa Farm Custom Rate Survey that is coordinated and analyzed by Iowa State University. 3854 0 obj <> endobj The cost for new and used machinery has increased rapidly in the early months of 2021, which together with increasing fuel costs and higher labor charges, may impact final 2021 custom rates. A fuel price increase of $.50 per gallon would cause most custom rates to increase by approximately five percent. The survey project collects and disseminates information on issues of importance to farmers and agricultural stakeholders across Iowa and the Midwest. Iowa Farmland Rental Rates 1994-2022 (USDA) Cropland rental rates released by the USDA National Agricultural Statistics Service averaged $256 per acre in 2022, a 9.9% increase from 2021, and the highest percentage increase in the past 10 years. These average rates are only meant to be a guide for custom rates, as actual custom rates charged may vary depending on increases in fuel costs, availability of custom operators, timeliness, field size, etc. "I0&A$9<0y L:I=""Y +D@({M! 0000007571 00000 n Postal Service in February and 198 by email, said. The Iowa Farm and Rural Life Poll is an annual survey of Iowa farmers. Mostly sunny. The 2022 Iowa Farm Custom Rate Survey is intended as a guide in determining custom rates. Following are the median custom rates for some common farming practices for 2021, based on the Iowa farm custom rate survey: Custom farming rates (tillage, planting and. The results were based on 118 responses and 3,785 custom rates submitted. Nowis a great opportunity for producers to review their crop insurance choices for the upcoming season. The information below is based on a survey of 122 usable responses and 3,389 custom rates provided by Iowa farmers, custom operators, and farm managers. All listed custom rates in the 2021 Iowa Survey results include fuel, labor, repairs, depreciation, insurance, and interest, unless otherwise specified. First Amendment: Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. The cost of combining corn ranged from $22 to $45 per acre, with an average of $35.10 per acre. In a year such as 2021 that has featured significant increases in operation costs for farm machinery, it may be justified and necessary to adjust some of those custom rates above the median or average rates. %0SH" 0000093065 00000 n AMES, Iowa Many Iowa farmers continue to hire at least some of their fieldwork and livestock work to be done by others, and new data from a popular survey provides ranges and averages of what is being paid. Sometimes, it can be difficult to arrive a fair custom rate for the certain farming practices, or for the use of various pieces of machinery. The reported rates are expected to be charged or paid in 2022, and they include fuel and labor (unless otherwise noted). In March 2021, corn and soybean prices received by farmers in Iowa averaged $4.89 and $13.30 per bushel and, despite the run up in prices observed since July 2020, they accumulate a 38% and 21% decline since August 2012 (figure 3). Typically, as part of the custom farming agreement, the harvested grain of the landowner is delivered by the custom operator to a farm storage facility owned or rented by the landowner; or to an agreed upon area grain elevator. The average cost for baling small square bales was $.59 per bale, $9.35 for large square bales, $10.80 for large round bales without wrapping, and $13.20 for large round bales wrapped. There were 118 useable surveys returned. 0000027931 00000 n In addition, custom farming offers a fixed return per acre to the custom operator, and although there is some possibility of higher repair bills, this is minor compared with the price and yield risks typically faced by a farm operator in a normal cash rental contract. IIIfTRrq ] f>ddi?` !u/l,Q-,G0Jg`B0whe%2}`i )|MH2n '6o*WP_ VX endstream endobj 3863 0 obj <>/Filter/FlateDecode/Index[70 3744]/Length 87/Size 3814/Type/XRef/W[1 1 1]>>stream The landowner does have to pay the farm operator an agreed upon per acre fee for the custom farming services by specified dates. In a typical custom farming agreement, the landowner pays for all seed, fertilizer, chemicals, crop insurance, and other input costs; receives the proceeds from all grain that is produced, as well as all eligible farm program payments on the land; and is responsible to store and market the grain. [CDATA[// >