Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
4/2/03
FOR IMMEDIATE RELEASE
Contacts:
William Edwards, Ag Economics, 515-294-6161, wedwards@iastate.edu
Jean McGuire, Continuing Education and Communication Services, (515) 294-7033,
jmcguire@iastate.edu
Custom Rate Survey for Iowa Natural Resources Now Available
A new Iowa State University (ISU) Extension publication summarizes the results of a survey of contractors who provide services related to natural resource conservation. Operations include tillage and planting of native grasses, trees and wildlife plots, controlling weeds, cutting trees and brush and moving dirt.
"Changes in the Environmental Quality Incentives Program and the new Conservation Security Program authorized an increase in funding for natural resource conservation efforts, says William Edwards, ISU Extension ag economics. "However, recent federal budget developments may affect the level and availability of the funding for these efforts."
"Natural Resources Custom Rate Survey" (FM1873) shows the median (midpoint) rate and the range of rates reported. Respondents used their own judgment in reporting, based on their opinion of a "normal" job. Actual costs will vary widely. If you are planning to offer a service like planting a wildlife food plot, calculate your own costs carefully before deciding on the rate to charge. Farmers who own their equipment have more flexibility in the rates they charge because their overhead and purchase costs can be shared with the farming enterprise. Full-time custom operators need to cover all costs from the fees they charge plus earn a profit.
When considering hiring a custom operator make sure to discuss details of a specific job with the operator before entering into an agreement. Conditions such as job size, terrain and location vary, which accounts for some of the range in the rates charged. Some contractors set a minimum charge per job, to cover transportation and setup costs.
The "Natural Resources Custom Rate Survey" can be found on the Web at: http://www.extension.iastate.edu/Publications/FM1873.pdf or ordered through any ISU Extension county office.
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