FACT Sheet Custom Work Charges in Maryland 2013

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FACT

Sheet

FS 683

Custom Work Charges in Maryland 2013

Introduction

Financial and economic considerations such as limited capital, untimely cash flow, insufficient labor, small acreage or other reasons require farmers to hire custom service for field operations.

Custom work charges are determined by demand and supply and are negotiated between farmers and custom operators. The purpose of this publication is to provide information on custom work charges in Maryland and to provide data to assist in decision making regarding purchasing equipment.

Using Custom Rate Information

* Custom operators use custom rates to compare rates with competitors.

* Farmers use custom rates as a guide for machinery, budgeting and financial planning.

* Lenders, educators and government agencies use custom rates for budgeting, advising and analysis.

Rates that are quoted in this publication are expressed in different ways depending on the specific job (per acre, hour, ton, mile, bale, etc.). The rates provided are to help custom operators and farmers make decisions about rate charges. The prices reported are not official or established rates but an average of responses from the survey.

Reported rates include charges for machines, power, fuel, lube and the labor/operator. These rates do not include the costs of chemicals, seeds, and other materials with the exception of hay baling materials and where noted (i.e. spreading lime).

Custom rates in this publication may not suit all custom operators and those hiring custom work. It is important that operators calculate their own custom costs. It is also important that farmers create their own budgets which include their variable costs and fixed costs and do not rely only on custom rates to determine their cost of production.

Custom Work Charges for 2013

A mail survey was conducted in the fall of 2012 to determine custom works charges in Maryland. Data were collected from 70 custom operators and farmers and summarized for the state.

Participants indicated the rates they charge for various field operations. The charges reported in this publication may serve as a guide in determining an acceptable rate for a particular job where little other information is available. The charges can also be compared with costs and returns and may be used as a basis for working out more equitable charges for both the custom operator and customer.

Table 1 summarizes the custom work charges for the various operations for the State of Maryland. It shows the range (low and high), average (mean) as well as the median charge. The median refers to the middle of the range. Half of the responses are below and half are above. The median is less sensitive to extreme responses and is a better measure than the average.

Table 2 summarizes the last three surveys comparing rates reported for practices in 2013, 2011 and 2009.

It also shows the percent change from the 2011 survey to the current 2013 survey.

There are wide ranges with some operation charges. Variations may be due to the lack of knowledge about charges and difference in location, topography, field size and shape, crop yields, soil conditions, weather conditions, work quality, equipment type and size, timeliness or the ratio of available jobs to custom operators.

For more crop budgeting information visit: www.mdgrainmarketing.umd.edu

Custom Work Charges in Maryland 2013

Author:

Shannon Dill, Extension Educator, Agriculture and Natural Resources, University of Maryland Extension

Acknowledgements:

Revised fact sheet by Dale Johnson, 2002. Appreciation is extended to Allison Roe for assistance in conducting the survey and Jim Lewis, Dale Johnson, and Ben Beale for reviewing the fact sheet.

Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of

Agriculture, University of Maryland, College Park, and local governments. Cheng-i Wei, Director of University of Maryland

Extension.

_____________________________________________________________________________________________

The University of Maryland is equal opportunity. The University’s policies, programs, and activities are in conformance with pertinent Federal and State laws and regulations on nondiscrimination regarding race, color, religion, age, national origin, gender, sexual orientation, marital or parental status, or disability. Inquiries regarding compliance with Title VI of the Civil Rights Act of

1964, as amended; Title IX of the Educational Amendments; Section 504 of the Rehabilitation Act of 1973; and the Americans

With Disabilities Act of 1990; or related legal requirements should be directed to the Director of Human Resources Management,

Office of the Dean, College of Agriculture and Natural Resources, Symons Hall, College Park, MD 20742.

P2002/R2008/R2010/R2012

2

TABLE 1.

Operation

Stalk Cutting

Plowing-Chisel

Plowing-Moldboard

Disking-Heavy

Disking with Cultipacker or Harrow

Cultivating

Cultipacking

Subsoiling

Soil Finishing

Vertical Tillage

Strip Till

Corn Planting- Conventional w/ Fertilizer

Corn Planting- Conventional w/o Fertilizer

Corn Planting- no-till w/ fertilizer

Corn Planting-no-till w/o fertilizer

Soybean Planting- Conventional

Soybean Planting-No-Till

Drilling-Small Grain

Seeding-Grass Drilling/no-till

Seeding- Grass Broadcast

Seeding - small grain broadcast

Seeding-Aerial

Fertilizer Application-Dry

Fertilizer Application-Liquid

Fertilizer Application- Side Dress

Lime (included lime and application)

Manure Loading

Manure Spreading-Liquid

Manure Spreading-Solid

Manure Spreading-Litter

Manure Hauling

Spraying- Pesticide Ground

Spraying- Pesticide Aerial

Mowing Hay

Mowing and Conditioning Hay

Raking Hay

Bailing-Small Squares

Bailing-Large Round Bales

Mow, Rake, Bale Hay-no haul

Field Chop, Haul & Fill Silo

Combining-Corn

Combining-Soybeans

Acre

Acre

Acre

Acre

Acre

Ton

Ton

Ton

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Unit

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Bale

Bale

Bale

Ton

Acre

Acre

Ton

Ton

Ton

Acre

Acre

Acre

MIN MAX

$9.00 $26.00

$12.00 $25.00

$14.00 $26.00

$12.00 $35.00

$14.00 $42.00

$11.50 $20.00

$4.00 $18.00

$15.00 $30.00

$9.50 $26.00

$10.00 $25.00

$16.50 $20.00

$14.00 $62.00

$13.00 $55.00

$15.00 $67.00

$14.00 $60.00

$14.50 $50.00

$12.00 $57.00

$11.00 $50.00

$17.50 $40.00

$8.00 $45.00

$6.50 $45.00

$10.50 $32.00

$6.00 $20.00

$7.25 $15.00

$8.50 $14.00

$31.00 $57.00

$3.00 $25.00

$8.25 $8.25

$8.00 $56.60

$3.75 $40.00

$6.50 $21.50

$7.25 $15.00

$9.00 $28.00

$14.00 $35.00

$13.00 $40.00

$8.00 $25.00

$0.75 $1.75

$6.50 $18.00

$2.00 $10.00

$6.98 $30.00

$23.75 $45.00

$23.75 $45.00

$20.00

$10.00

$15.13

$8.50

$17.00

$19.00

$17.13

$11.00

$1.00

$9.00

$2.35

$8.75

$32.00

$32.00

$20.00

$20.00

$20.50

$20.00

$28.00

$20.00

$10.00

$25.00

$8.00

$8.00

$11.00

$40.00

$8.50

$8.25

MEDIAN AVERAGE

$15.00

$20.00

$21.50

$16.88

$19.37

$21.34

$18.00

$20.00

$12.00

$13.13

$20.00

$19.60

$21.13

$14.50

$12.04

$21.67

$16.00

$20.00

$18.25

$20.00

$20.00

$20.50

$18.44

$18.41

$18.25

$21.77

$20.70

$22.56

$21.56

$21.11

$22.07

$20.91

$27.32

$21.71

$14.49

$22.75

$8.78

$9.18

$10.87

$42.31

$11.25

$8.25

$22.57

$13.71

$14.56

$8.99

$17.83

$20.33

$19.35

$13.85

$1.18

$10.00

$4.18

$13.62

$32.45

$32.41

3

Operation

Combining-Small Grains

Custom Farming-Corn

Custom Farming-Soybeans

Custom Farming- Small Grains

Hauling Grain-Local

Hauling Grain-Long Distance

Storing Grain

Drying Grain

Grinding Feed

Mixing Feed

Grinding and Mixing Feed

Soil Testing

Nutrient Management Plan Writing

General Farm Labor

Skilled Farm Labor

Machinery Operation

Bush hogging

Mowing CRP Acres

Mowing

Clearing Land

Posthole Digging

Post Driving

Snow Removal

Bobcat

Trenching

Livestock Hauling w/ Trailer

Bulldozer

Honey Bee Hive Rental

Tree Planting

Vegetative Buffer Planting

Tractor Rental- <80 HP

Tractor Rental- 80-120 HP

Tractor Rental- 120-160 HP

Tractor Rental- >160 HP

Hour

Hour

Hour

Acre

Acre

Hour

Hole

Hole

Hour

Hour

Foot

Loaded Mile

Unit

Acre

Acre

Acre

Acre

Bu.

Bu.

Bu./Mo

Point

Cwt.

Cwt.

Cwt.

Sample

Acre

Hour

Hour

Hive

Per Plant

Acre

Hour

Hour

Hour

Hour

MIN MAX

$23.75 $50.00 $30.00

$40.00 $120.00 $110.00

$40.00 $110.00

MEDIAN AVERAGE

$85.00

$32.01

$95.00

$80.00

$40.00 $100.00

$0.10 $0.45

$0.15 $0.73

$90.00

$0.15

$0.30

$76.67

$0.19

$0.33

$0.02

$0.02

$0.35

$0.11

$0.12

$1.65

$0.60

$0.40

$1.05

$0.75

$7.00 $60.00

$3.00 $8.00

$7.00 $30.00

$0.05

$0.07

$0.40

$0.83

$0.58

$15.00

$4.50

$11.75

$0.06

$0.07

$0.80

$0.83

$0.58

$18.80

$4.92

$12.68

$10.00 $40.00

$13.50 $45.00

$20.00 $130.00

$17.00

$23.50

$65.00

$12.00 $90.00

$13.50 $125.00

$25.00

$33.50

$75.00 $130.00 $110.00

$2.00 $15.00

$4.00 $15.00

$6.00

$9.00

$60.00 $180.00 $100.00

$45.00 $130.00

$1.00 $8.00

$1.75 $2.00

$72.50

$2.00

$1.75

$80.00 $135.00 $100.00

$35.00 $35.00 $35.00

$5.00 $16.00

$20.00 $45.00

$20.00 $95.00

$10.50

$35.00

$50.00

$30.00 $125.00

$40.00 $95.00

$77.50

$67.50

$120.00 $130.00 $125.00

$102.92

$35.00

$10.50

$33.33

$56.88

$73.33

$67.50

$125.00

$18.61

$27.25

$70.47

$33.33

$43.53

$105.22

$7.25

$9.25

$112.50

$76.00

$3.15

$1.83

4

TABLE 2.

Operation

Stalk Cutting

Plowing-Chisel

Plowing-Moldboard

Disking-Heavy

Disking with Cultipacker or Harrow

Cultivating

Cultipacking

Subsoiling

Soil Finishing

Vertical Tillage

Strip Till

Corn Planting- Conventional w/

Fertilizer

Corn Planting- Conventional w/o

Fertilizer

Corn Planting- no-till w/ fertilizer

Corn Planting-no-till w/o fertilizer

Soybean Planting- Conventional

Soybean Planting-No-Till

Drilling-Small Grain

Seeding-Grass Drilling/no-till

Seeding- Grass Broadcast

Seeding-Aerial

Fertilizer Application-Dry

Fertilizer Application-Liquid

Fertilizer Application- Side Dress

Lime (included lime and application)

Manure Loading

Manure Spreading-Liquid

Manure Spreading-Solid

Manure Spreading-Litter

Manure Hauling

Spraying- Pesticide Ground

Spraying- Pesticide Aerial

Mowing Hay

Mowing and Conditioning Hay

Raking Hay

Bailing-Small Squares

Bailing-Large Round Bales

Unit

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Ton

Ton

Ton

Ton

Ton

Ton

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Acre

Bale

Bale

$11.25

$8.25

$22.57

$13.71

$14.56

$8.99

$17.83

$20.33

$19.35

$13.85

$1.18

$10.00

$22.56

$21.56

$21.11

$22.07

$20.91

$27.32

$21.71

$22.75

$8.78

$9.18

$10.87

$42.31

AVERAGE

2013

$16.88

$19.37

$21.34

$19.60

$21.13

$14.50

$12.04

$21.67

$18.44

$18.41

$18.25

$21.77

AVERAGE

2011

$15.80

$16.39

$21.12

$16.14

$16.72

$14.37

$12.35

$21.65

$17.46

$16.88

$20.68

$15.73

AVERAGE

2009

$12.89

$16.17

$22.67

$17.48

$15.33

$11.25

$3.75

$19.75

$15.68

-

-

$17.31

PERCENT

CHANGE FROM

2011 - 2013

7%

18%

1%

21%

26%

1%

-2%

0%

6%

9%

-12%

38%

$20.70 $17.61 $16.65 18%

$16.80

$19.31

$17.00

$17.82

$17.12

$27.92

$15.11

$18.10

$8.33

$7.75

$10.21

$40.00

$10.67

$2.50

$12.33

$7.88

$20.50

$8.31

$10.25

$21.47

$21.02

$13.96

$0.85

$8.41

$21.50

$21.75

$16.36

$20.73

$18.08

$21.91

$10.60

-

$8.07

$10.43

$8.77

$38.43

-

-

-

-

-

$7.80

-

-

$15.79

$10.05

$0.98

$7.25

6%

6%

5%

230%

83%

74%

-29%

8%

34%

12%

24%

24%

22%

-2%

44%

26%

5%

18%

74%

-5%

-8%

-1%

38%

19%

5

Operation Unit

Mow, Rake, Bale Hay-no haul

Field Chop, Haul & Fill Silo

Combining-Corn

Combining-Soybeans

Combining-Small Grains

Custom Farming-Corn

Custom Farming-Soybeans

Custom Farming- Small Grains

Hauling Grain-Local

Hauling Grain-Long Distance

Storing Grain

Drying Grain

Grinding Feed

Mixing Feed

Grinding and Mixing Feed

Soil Testing

Nutrient Management Plan Writing

General Farm Labor

Machinery Operation

Bush hogging

Mowing CRP Acres

Mowing

Clearing Land

Posthole Digging

Post Driving

Snow Removal

Bobcat

Trenching

Livestock Hauling w/ Trailer

Bulldozer

Tree Planting

Vegetative Buffer Planting

Tractor Rental- <80 HP

Tractor Rental- 80-120 HP

Tractor Rental- 120-160 HP

Tractor Rental- >160 HP

-

Indicates no previous year’s data.

Acre

Acre

Hour

Hole

Hole

Hour

Hour

Foot

Loaded

Mile

Hour

Cwt.

Cwt.

Cwt.

Sample

Acre

Hour

Hour

Hour

Per Plant

Acre

Hour

Hour

Hour

Hour

Bale

Ton

Acre

Acre

Acre

Acre

Acre

Acre

Bu.

Bu.

Bu./Mo

Point

AVERAGE

2013

$12.68

$27.25

$70.47

$33.33

$43.53

$105.22

$7.25

$9.25

$0.33

$0.06

$0.07

$0.80

$0.83

$0.58

$18.80

$4.92

$112.50

$76.00

$3.15

$1.83

$4.18

$13.62

$32.45

$32.41

$32.01

$95.00

$80.00

$76.67

$0.19

$102.92

$10.50

$33.33

$56.88

$73.33

$67.50

$125.00

AVERAGE

2011

$4.35

$8.25

$30.33

$29.92

$29.97

$87.50

$97.50

$100.00

$0.15

$12.83

$31.50

$67.13

$24.82

$23.00

$107.50

$4.67

$8.00

$0.25

$0.05

$0.05

$0.33

$0.50

$0.35

$17.56

$4.33

$102.27

$79.00

$11.44

$1.50

AVERAGE

2009

$17.96

$31.25

$74.00

$27.80

$23.25

$93.43

$5.33

$1.50

$0.31

$0.06

$0.10

$0.47

$0.85

-

$3.50

-

$87.91

$70.83

$42.25

$2.38

-

$3.65

$30.58

$30.73

$30.43

-

-

-

$0.18

PERCENT

CHANGE FROM

2011 - 2013

-4%

65%

7%

8%

7%

9%

-18%

-23%

21%

32%

5%

35%

34%

89%

-2%

55%

16%

10%

-4%

-72%

22%

146%

65%

64%

7%

13%

-1%

-13%

5%

$101.50

$4.00

$15.00

$63.13

$58.89

$83.75

$80.75

-

-

-

-

-

-

-

1%

163%

122%

-10%

25%

-19%

55%

6

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