Archived Custom Rates

Historical Indiana Farm Custom Rates can be accessed in our archive. These are updated every-other year and date back to 2017.

May 8, 2017

2017 Indiana Farm Custom Rates

The rates reported in this publication were compiled from questionnaires received from farmers, farm owners, farm custom operators, and professional farm managers in Indiana. Purdue Extension educators and specialists developed the questionnaire. Purdue Educators distributed the questionnaires at meetings and events statewide during the last month of 2016 and the first three months of 2017. Respondents were asked to report custom rates they had either paid or received during the past year. We are grateful to the 115 survey respondents who provided information for this publication.

Unless otherwise stated, the rates reported include payments made for fuel, operator labor, and machinery ownership costs. For each operation, the average of the responses received is reported. The variation of rates around the average is reported when the number of respondents for a question was at least 30. The variation is the average rate plus and minus one standard deviation. Approximately two-thirds of the responses would be expected to fall between the high and low numbers used to summarize the extent of the variation. Larger standard deviations in relation to reported averages indicate greater variability in the reported custom rates. For several of the operations the custom rates reported varied widely. With the exception of shredding corn stalks, which received four responses, operations for which fewer than five responses were received are not reported here. A small number of responses signals report users to be extra cautious when using the survey results.

Farm custom rates may differ significantly from one area in the state to another based on availability of custom operators and demand for their services. Therefore, the statewide averages reported here might be quite different from the going rate in any given area. Custom rates in a given area may vary significantly according to timeliness, operator skill, field size and shape, crop conditions, the performance characteristics of the machine being used, the relationship between the custom operator and the person needing custom work done, competitive pressures, and economic circumstances of the custom operator. The variation of reported rates was large for many of the operations and thus should only be used as a starting point for establishing a rate in any given situation.

In Indiana, custom work is often done by farming neighbors after they complete their own work. In these situations, the custom operator may charge a custom rate that is well below the full cost of owning and operating their farm machinery either to build goodwill or to more fully utilize their machinery capacity. For that reason, readers of this publication should not interpret the average rates reported here as indicative of the total cost of completing these operations. Custom operators who do large amounts of custom work should estimate the full ownership and operating costs of their services before agreeing to work for the “going rate” in their area.

2017 Farm Custom Rates Summary 1

2017 Farm Custom Rates Summary 1

2017 Farm Custom Rates Summary 2

2017 Farm Custom Rates Summary 2

TAGS:

TEAM LINKS:

RELATED RESOURCES

May Corn & Soybean Outlook Update

May 16, 2022

Recorded May 16 | Purdue ag economists discussed the corn and soybean outlook following USDA’s May World Agricultural Supply and Demand Estimates (WASDE) report and provided implications for crop marketing strategies.

READ MORE

International Benchmarks for Wheat Production

May 5, 2022

This paper examines the competitiveness of wheat production for important international wheat production regions using 2016 to 2020 data from the agri benchmark network. Data from ten typical farms with wheat enterprise data from Argentina, Australia, Canada, Germany, Russia, Ukraine, and United States were used in this paper.

READ MORE

Inflation, Interest Rates & the Cost of Farm Inputs

April 20, 2022

What really is inflation? How is it measured? What is the potential impact on consumers and the ag sector? Purdue agricultural economists Brady Brewer, Michael Langemeier, and James Mintert discuss these questions and the potential impacts of rising inflation & Fed policy on interest rates. Near the end of the conversation, they discuss the long-run relationship between inflation and farm input prices. Slides and a transcript from the discussion are available.

READ MORE

UPCOMING EVENTS

Monthly Corn & Soybean Outlook Webinar Series

Webinar each month following USDA’s release of the updated World Agricultural Supply and Demand Estimates (WASDE). Catch the next monthly update on June 13th time TBD, for the corn and soybean outlook following release of USDA’s June Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Registration is free.

Read More

May Corn & Soybean Outlook Update

May 16, 2022

Recorded May 16 | Purdue ag economists discussed the corn and soybean outlook following USDA’s May World Agricultural Supply and Demand Estimates (WASDE) report and provided implications for crop marketing strategies.

READ MORE

Comparing Net Returns for Alternative Leasing Arrangements

August 4, 2021

A west central Indiana case farm is used to illustrate net returns to land derived from crop share, fixed cash rent, and flexible cash lease arrangements. Leases on agricultural land are strongly influenced by local custom and tradition. However, in most areas, landowners and operators can choose from several types of lease arrangements.

READ MORE

Indiana Farmland Prices Hit New Record High in 2021

July 26, 2021

It is safe to say that the last year was unlike any other in recent memory. The COVID-19 pandemic caused significant disruption to our lives and the global economy. Surprisingly, many of the current economic forces put upward pressure on farmland prices.

READ MORE