AMES, Iowa -- Rapidly rising machinery costs and the shortage of skilled labor is affecting some farming operations in the Midwest. Some farmers are sharing these resources to reduce costs and increase efficiency. However, producers need to consider a number of factors before entering sharing arrangements.
To help producers evaluate such arrangements, Iowa State University (ISU) Extension and University of Missouri Extension economists have developed the Machinery and Labor Sharing Arrangements Workshop.
Georgeanne Artz, assistant professor of agricultural economics at the University of Missouri, has interviewed a number of producers who share both equipment and labor in their farming operations. “Our research suggests that sharing machinery can help control costs and reduce financial risk,” said Artz. “In most cases, producers who share or co-own equipment worked together as well, reducing their need for seasonal help which is increasingly hard to find.”
William Edwards, professor and ISU Extension economist, coordinates the annual Farm Machinery Custom Rate survey. “Feedback from our custom rate survey indicates that many producers are concerned about the significant rise in machinery costs and are looking for strategies to deal with this ever increasing challenge,” said Edwards. “Producers who want to use their resources more efficiently can gain a greater understanding of the benefits and challenges of co-owning equipment and sharing labor by participating in these workshops.”
The workshop will address:
- Benefits and drawbacks of sharing equipment and labor
- Tax, liability and farm payment eligibility issues associated with equipment and labor sharing
- Planning for sharing resources
- Available resources for planning and implementation of resource sharing
More information about the program can be found online at www.machinerysharing.info.
Three workshops will be offered in Iowa. The Feb. 16 workshop will be held in Fort Dodge. To register, please contact Kelvin Leibold, ISU Extension, (641) 648-4850, firstname.lastname@example.org. The Feb. 21 workshop will be held in Mount Vernon. To register, please contact Jim Jensen, ISU Extension, at (319) 385-8126 or email@example.com. The Feb. 22 workshop will be held in Carroll. To register, please contact Tom Olsen, ISU Extension, at (712) 732-5056 or firstname.lastname@example.org .
Two workshops will be offered in Missouri. The Feb. 28 workshop will be held in Chillicothe. To register, please contact Kevin Hansen, University of Missouri Extension, at (660) 646-0811 or HansenK@missouri.edu. The March 1 workshop will be held in Nevada, Mo. To register, please contact Wayne Prewitt, University of Missouri Extension, at (417) 448-2560, PrewittW@missouri.edu .
This program is sponsored by the North Central Risk Management Education Center, Leopold Center for Sustainable Agriculture, Iowa State University Extension, and University of Missouri Extension. The Iowa Farm Bureau Federation and Grundy National Bank are program collaborators.