|
Newsletter | Past Issues
July,
2006
In This
Issue:
Ohio
Farm Custom Rates (Part 2)
Renting
Farm Buildings
Impacts
of Recent Legislation on 2006 Taxes
Legal
Liability Issues for Pick-Your-Own Operators
Planning
for the Future - Is It Worth It?
Designing
Effective Pay-For Performance Systems for Employees
and Suppliers (Part 2)
Economic
Data from Ohio Dairy Farms Using FINPACK
Ohio
State Extension Hosting the N.A.C.A.A. National Meetings
Ohio
Ag Manager Team Garners National Recognition
Do
you have a question that you would like to ask the Ohio
AG Manager Team? If so, click here to email your
question.
Ohio
Farm Custom Rates-Part 2
Barry Ward, Leader,
Production Business Management, OSU Extension and The
Department of Agricultural, Environmental, Development
Economics
Many
Ohio farmers hire custom farm work in their farm business
or perform custom farm work for others. Custom farming
rates traditionally have been arrived at by a series
of calculations and negotiations. One of the most common
ways custom farming providers and consumers arrive at
an agreeable custom farming rate is to access University
Extension summarized surveys. Ohio State University
Extension and the Department of Agricultural, Environmental
and Development Economics have historically published
farm custom rates to assist farm businesses with this
important task.
“Ohio
Farm Custom Rates 2006” is the first Ohio custom rate
survey update since 2002 and is available at your local
Ohio State University extension Office or online at:
http://aede.osu.edu/programs/FarmManagement/OhioFarmCustomRates2006.pdf
“Ohio
Farm Custom Rates 2006 is based on survey results from
277 Ohio farmers, custom farmers and farm managers.
The custom rates presented may differ from rates in
your region depending on availability of custom operators
& machinery, timeliness, operator skill, field size
& shape, crop conditions, performance characteristics
of the machine being used and demand for custom farming
services.
Custom
farming rate increases for 2006 include custom Corn
Harvest at $24/acre, Conventional Corn Planting at $14.30/acre
and Drilling Soybeans at $14.20/acre (see the June edition
of the OAM for planting rates). These represent increases
of 14%, 19% and 9%, respectively over 2002 Ohio custom
rates. Other operations show similar 4 year rate increases.
Higher machinery, fuel and labor costs have contributed
to custom farming rate increases over the past 4 years.
For more information on custom farming rates and other
Farm Management Topics see our Department Farm Management
Website at:
http://aede.osu.edu/programs/FarmManagement/
The
"Average" rate listed below is the average
of all responses. The range is the average +/-
one standard deviation which includes about two-thirds
of all responses.
Ohio
Farm Custom Rates – 2006 – Part II
|
|
Average
|
|
Range
|
Grain
Harvest |
|
|
|
|
|
|
Combine
Corn / acre |
|
$24.00
|
|
$21.53
|
-
|
$26.47
|
Combine
Soybeans / acre |
|
$23.50
|
|
$20.57
|
-
|
$26.41
|
Combine
Small Grains / acre |
|
$23.05
|
|
$20.30
|
-
|
$25.81
|
Ear
Corn Picker / acre |
|
$22.05
|
|
$12.00
|
-
|
$32.69
|
Grain
Storage |
|
|
|
|
|
|
Take-in
plus 4 months / bushel |
|
0.14
|
|
$0.09
|
-
|
$0.19
|
Initial
take-in / bushel |
|
0.14
|
|
$0.06
|
-
|
$0.21
|
Storage
/ month / bushel |
|
0.031
|
|
$0.02
|
-
|
$0.04
|
Storage
/ year / bushel |
|
0.14
|
|
$0.08
|
-
|
$0.20
|
|
|
|
|
|
|
|
Grain
dry |
|
|
|
|
|
|
Moisture
Removed / per point / bushel |
|
$0.03
|
|
$0.02
|
-
|
$0.05
|
|
|
|
|
|
|
|
Grain
Haul |
|
|
|
|
|
|
Farm
to market (30 miles-one way) / bushel |
|
$0.13
|
|
$0.08
|
-
|
$0.18
|
Field
to farm (11 miles-one way) / bushel |
|
$0.09
|
|
$0.05
|
-
|
$0.12
|
|
|
|
|
|
|
|
Custom
Farming |
|
|
|
|
|
|
(All
Machinery Operations for Growing and Harvesting)
|
|
|
|
|
|
|
Corn
/ acre |
|
$74.30
|
|
$50.00
|
-
|
$108.24
|
Soybeans
/ acre |
|
$60.85
|
|
$46.72
|
-
|
$74.98
|
Small
Grains / acre |
|
$60.65
|
|
$51.20
|
-
|
$70.05
|
|
|
|
|
|
|
|
Hired
Labor |
|
|
|
|
|
|
Machinery
operation / hour |
|
$10.90
|
|
$8.57
|
-
|
$13.20
|
General
farm labor / hour |
|
$9.00
|
|
$7.10
|
-
|
$10.91
|
|
|
|
|
|
|
|
Machinery
Rental (machine only) |
|
|
|
|
|
|
Tractor
/ horsepower / hour |
|
$0.24
|
|
$0.15
|
-
|
$0.32
|
Corn
Planter (No-Till) / acre |
|
$15.65
|
|
$10.00
|
-
|
$21.49
|
Combine
/ Separator hour |
|
$113.60
|
|
$87.29
|
-
|
$139.91
|
Grain
Drill (No-till) / acre |
|
$11.40
|
|
$7.50
|
-
|
$15.51
|
Bobcat/skid
loader / day |
|
$140.90
|
|
$88.29
|
-
|
$193.53
|
|
|
|
|
|
|
|
Miscellaneous
|
|
|
|
|
|
|
Bush
Hogging / acre |
|
$13.35
|
|
$5.09
|
-
|
$21.65
|
Income
Tax prep / hour |
|
$139.15
|
|
$103.05
|
-
|
$175.28
|
Income
Tax prep / return |
|
$262.80
|
|
$150.65
|
-
|
$374.97
|
Farm
account summary / return |
|
$282.20
|
|
$151.45
|
-
|
$412.99
|
Track
Hoe / hour |
|
$91.80
|
|
$72.23
|
-
|
$111.37
|
Snow
Removal (Loader) / hour |
|
$55.00
|
|
$26.72
|
-
|
$83.28
|
Snow
Removal (Blade) / hour |
|
$58.90
|
|
$30.83
|
-
|
$72.92
|
Snow
Removal (Blower) / hour |
|
$67.00
|
|
$50.00
|
-
|
$67.95
|
Bulldozing
/ per foot of blade / hour |
|
$8.35
|
|
$6.56
|
-
|
$10.12
|
|
|
Average
|
|
Range
|
Silage
Harvest |
|
|
|
|
|
|
Upright
Silo |
|
|
|
|
|
|
Corn
Silage / Chop / ton |
|
$4.40
|
|
$3.50
|
-
|
$5.80
|
Corn
silage / Chop/ haul, and fill /ton |
|
$6.15
|
|
$5.00
|
-
|
$7.44
|
|
|
|
|
|
|
|
Hay/Straw
Harvest |
|
|
|
|
|
|
Mowing
/ acre |
|
$10.50
|
|
$8.38
|
-
|
$12.62
|
Mowing
and Conditioning / acre |
|
$11.75
|
|
$9.65
|
-
|
$13.85
|
Raking
/ acre |
|
$5.90
|
|
$4.38
|
-
|
$7.40
|
Tedding
/ acre |
|
$5.85
|
|
$4.35
|
-
|
$7.35
|
|
|
|
|
|
|
|
Baling
Small Bales |
|
|
|
|
|
|
Bale
and drop in field / bale |
|
$0.44
|
|
$0.26
|
-
|
$0.62
|
Bale
and load on wagon / bale |
|
$0.50
|
|
$0.28
|
-
|
$0.72
|
Haul
and store / bale |
|
$0.33
|
|
$0.19
|
-
|
$0.47
|
|
|
|
|
|
|
|
Baling
Large Round bales |
|
|
|
|
|
|
Bale
and drop in field / ton |
|
$17.35
|
|
$11.82
|
-
|
$22.88
|
Bale
and haul / ton |
|
$21.40
|
|
$13.53
|
-
|
$29.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Complete
Hay Harvest |
|
|
|
|
|
|
Complete
Hay Harvest / ton |
|
$32.50
|
|
$21.94
|
-
|
$41.50
|
Complete
Hay Harvest / % of crop |
|
54.00%
|
|
50.00%
|
-
|
60.00%
|
|
|
|
|
|
|
|
Drainage
and Tile Installation |
|
|
|
|
|
|
Excluding
Material |
|
|
|
|
|
|
Ditching
Machine |
|
|
|
|
|
|
4"
Plastic / foot |
| | 
