Our recently completed survey of custom rates paid or charged by Iowa farmers showed consistent increases in nearly every operation. Most operations showed increases of five percent or more over the 2006 average rate. The most commonly reported custom rate was for combining corn or soybeans. The average rates reported this year were $26.60 per acre for corn and $25.80 per acre for soybeans, compared to $25.70 and $25.00, respectively, in 2006.
While the price of diesel fuel has the most immediate impact on a custom operator’s costs, prices for both new and used machinery have jumped significantly, as well. This is due in part to higher prices for steel, but also to a strong demand for machinery purchases.
The Iowa Farm Custom Rate Survey sampled 165 farmers, custom operators, farm managers and lenders. Respondents were asked what they expected to pay or charge for various operations in 2006. Rates may vary from the average based on timeliness, size and shape of the fields, condition of the crop, quality of the machine and skill of the operator. The 2007 Iowa Farm Custom Rate Survey includes average values and ranges reported. It is available on the Web or through the Decatur County Extension Office.
we/bmr
9/24/2007