Custom Rates and Machine Rental Rates Used on Illinois Farms, 1968
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1 Custom Rates and Machine Rental Rates Used on Illinois Farms, 1968 ", '. r '.,. :. ~ : '~. d' University of Illinois at Urbana-Champaign C,ollege of Agriculture Cooperative Extension Service Circular 1003
2 CUSTOM WORK AND MACHINE RENTAL enable farmers to obtain the benefits of specialized machines that they cannot economically own or operate with the small volume of work on their farms. The owners of these machines and those who hire the use of them are interested in knowing what rates are fair to both parties. One guide is the rates that are currently being charged. The other is the cost of performing the operation. 1 This publication reports the rates used in Illinois in 1968, as measured by a survey in November, Each extension adviser in agriculture distributed 15 copies of a questionnaire to individuals hiring custom work or performing it for others and to individuals renting or renting out implements. These people were asked to report the rates they paid or charged in 1968 for custom work or for machine rental. More than 480 questionnaires were returned and were used to calculate the rates given in the tables. The number of reports is included for each operation to indicate the reliability of the rates quoted. that custom rates often vary considerably within a geographical area. One reason for the variation is the time required to perform the operation. This is influenced by topography, size and shape of the field, crop yields, weather during the year, size of the machine, and condition of the crop. Competition in the local area also affects the - if many machines are available in a local area the rates will drop, and where there are few implements the rates will be higher. Custom Contract Farming Rates The survey also collected a few reports on rates charged for custom contract farming. Custom contract farming is a new development in which the custom operator contracts with a landowner to perform all of the field operations for the crops on his farm. Thirty-two farmers who engaged in custom farming reported the rates they charged. There were three methods of arriving at charges: 1. The sum of the charges for the amount of Machine-Rental Rates The rates charged for only renting farm machinery, with no other charges included, are given in Table 1. These are reported only for the state as a whole because there were not enough reports to justify summarizing the data by areas. Custom Rates The custom rates reported in Table 2 include the charges made for the use of the machine, the time of the operator, necessary mechanical power, other supplies furnished, such as tractor fuel, wire, or twine for baler, and an allowance for risk and overhead. The cost of materials applied, such as seed or chemicals, is not included. Rates are given for the state as a whole and for the four areas shown in the map at right. The shown for each operation indicates 1 Cost information and methods of estimating costs can be obtained from the Department of Agricultural Economics and the Department of Agricultural Engineering. Prepared by R. A. Hinton, Associate Professor of Farm Management. Urbana, Illinois August, 1969 Issued in furtherance of Cooperative Extension Work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. JOHN B. CLAAR, Director, Cooperative Extension Service, University of Illinois at Urbana-Champaign.
3 each operation actually performed in producing the Table 1. - Concluded crops. State 2. A flat rate for performing all the field opera tions necessary to produce the crops. (and No. freq. of rpt.) rate 3. Either Method 1 or 2 plus an incentive bonus. Thirteen of the farmers used the first method of SPRAYING MACHINERY, summing the charges for each individual operation (dollars) Trailer sprayer (22) performed. Self-propelled sprayer (26).50- Those who used the fiat-rate method reported the FORAGE-HARVESTING following charges: MACHINERY Mower, (11).50- No.of Ave. Hay conditioner, (36).50-2 Mower and crusher, (18) 1- rpt. rate Range Hay rake, (20) Corn, $30.27 $23-36 Forage harvester, per day (4) Soybeans, Blower, per day (7) Self-unloading forage wagons Wheat, per day (6) Diverted acres, per load (8).50-2 GRAIN-HARVESTING MACHINERY Corn picker Several reported that additional charges were made for management services, farm maintenance (15) -4 work, or other special tasks performed beyond the per day (4) Corn picker and tractor, per usual field operations. Incentive bonuses for a good acre (16) 4.00 Self-propelled combine, per acre Usual job varied from a premium for getting the crop planted before a specified date to a few cents per with grain head (41) with picker head (52) bushel over a certain yield. The amounts and speci Grain truck, fications for bonuses were so varied that an average per bushel (22).OF-.06 per day (5) would be misleading. Grain wagons per bushel... ".... 9(15).02 - per day (6) Grain auger, per bushel (24) Grain elevator, per bushel (13) Table 1. - Rental Rates Paid for Use of Farm Machines, Crop dryer, per bushel (14) - Illinois, 1968 TRACTORS 3 plow, per day (9) State per hour... " (3) plow, per day (10) Usual per hour (3) (and No. freq. 5 plow, per day (10) of rpt.) rate per hour (8) (dollars) MANURE-HANDLING TILLAGE MACHINERY, MACHINERY Loader with tractor Plows (18) perday (11) I ' Disks (19) per load (6).50- Stalk shredder (48).50-2 Spreader only Field cultivator (20).50- per day (10) Chisel plow (35).50- per load (9) Rotary tiller (6) 1- Liquid spreader only Cultivator row (19).50- per day , (5) Rotary hoe (24) per load (3) PLANTING MACHINERY, POSTHOLE DIGGER, per hole Corn planter (15) Only (13) - Grain drill (21) With tractor (22) -.20 Broadcast seeder (8) BRUSH DISK FERTILIZING MACHINERY peracre (8) -2 Anhydrous applicator,.67 (58) per day... 2 (3) Liquid fertilizer applicator BUSH HOG Sprayer, (27) (8) Knifed in, (5) per day (3) Dry fertilizer spreader Flo-type ROTARY WEED CUTTER (13) WITH TRACTOR, per ton (7) per day (7) Broadcast (59) CHAIN SAW, per day (9) per ton (21).50-2 STEAM CLEANER, per day (8)
4 Table 2. - Custom Rates Paid for Farm Operations, Illinois, 1968 STATE NORTHERN AREA EASTERN AREA WESTERN AREA SOUTHERN AREA Usual Usual Usual Usual Operation (and No. freq. (and No. freq. (and No. freq. (and No. freq. (and No. freq. Usual of rpt.) rate of rpt.) rate of rpt.) rate of rpt.) rate of rpt.) rate TILLAGE OPERATIONS, (dollars) (dollars) (dollars) (dollars) (dollars) Plowing cornstalks spring (229) (36) (84) (46) (63) fall (200) (29) (82) (42) (47) Plowing sod spring (146) (22) (49) (33) (42) fall (122) (19) (45) (29) (29) Plowing and fertilizing spring (43) (7) (18) (7) (11) fall (38) (6) (14) (7) (11) Rotary tilling... 5(8) Disking only stalk ground (178) 1.92 (27) 1.55 (64) 1.60(37) 1.83(50) 1- plowed ground (163) 2(24) (57) (33) (49) -3 Disking and applying insecticide (56) (5) (29) (10) (12) -3 Stalk shredding (109) 1.94(18) 1.91 (41) 1.86(30) 2.21(20) -3 Spike-tooth harrowing (83) (14).50-1 (29) (19) (21).50- Spring-tooth harrowing (36) (6) 1.48(14) (8) 1.39 (8) Chisel plowing (78) (6) (46) (9) (17) Field cultivating only (105) (15) (46) (20) (24) -3 and fertilizing (31) (4) (16) (4) - 3(7) 2-4 and applying insecticide (34) (5) (18) (4) (7) -4 Row cultivating 40" row (137) (17) (55) 1.54(29) 1.62(36) " row (60) (10) (24) (12) 1.77(14) Rotary hoeing (141) (16) 1.19(59) (31) (35).75-2 TILLING AND PLANTING, Field cultivating and planting corn only 40" row (64) 4.18(10) -5 3 (30) (13) (11) " row (33) (5) (15) (6) (7) soybeans only 40" row (56) (8) (29) (9) (10) " row (28) (5) (11) (6) (6) corn and applying chemicals 40" row (45) (8) (20) (7) (10) " row (24) (4) (8) (5) (7) soybeans and applying chemicals 40" row... 4 (39) (6) (18) (7) (8) " row (26) (5) (10) (4) (7) PLANTING, Planting corn 40" row..., (113) 1. 84(16) 1.61 (43) 30" row.., (52) (7) (20) Planting corn and applying 1.82(25) (10) (29) 2 (15) chemicals 40" row (107) (17) (38) (24) (28) " row (44) (11) -4 (13) (10) (10) Planting soybeans 40" row (90) (15) 1.63(32) 1.79(18) 2(25) " row (42) (9) -4 2(14) 1-4 (9) (10)
5 Planting soybeans and applying chemicals 40" row " row Drilling small grain alone with grass seed or fertilizer Drilling alfalfa and clover... Broadcast seeding..... APPLYING FERTILIZER, Anhydrous ammonia Mixed dry fertilizer flow type truck application..., Liquid fertilizer sprayed on... knifed in (77) 2.63 (39) 1.69 (100) 1.98 (77) (41) 1.02(66) 1.75 (202) (65) 1.12 (142) 1.12(112) (110) (10) 2.74(10) (14) 2. 11(14) 1.33 (3) 1. 19(5) (23) 1.18(12) 1.11 (19) 1.18(20) (13) (29) 2. 13(12) 1.51(36) 1.77(25) 1.51(20).92(22) 1.77(88) 1.16(22) 1. 10(47) 1.08(40) 1.47(50) (16) (8) 1. 60(18) (12) (9) (14) (42) 1.08(15) 1(30) 1.24(24) 1.55 (18) ~ (22) 3.38(9) 1.87(32) (26) 2.11(9) 1.06(25) 1.58(49) 1.42(16) 1(46) 1.06(28) 1(29) SPRAYING Mounted or trailer sprayer in field, High-clearance sprayer in field, Fence rows or brush, per hour (156) 1.34 (133) 6.47(82). 25 1(24) (14) 6(11) (54) (64) 6.34(31) (30) 1.47(26) (16) (48) 1.38 (29) 6.20(24) HARVESTING GRAIN Picking ear corn per bushel Combining corn, 40" rows per bushel plus per bushel.. Combining corn, 30" rows plus per bushel.. Combining oats,... Combining soybeans per bushel Combining wheat or barley, Combining clover seed, Combining grain sorghum, , Shelling corn from crib, per bushel only part crew with full crew (146).086(37) 7.60(145).092 (102) 5.34(156) (67) 5.62 (52) (241) 5.78 (333).31 (18) 5.25 (250) 6.11 (54)a 6.25 (16).029 (134) 7(78) (25) 7.83(36) 5.61(12) (16) 5.92(6) (45) 6.14(47) 5.54(29).027(29) 3(3) (50).084(18) 7.80(35).086(51) 5.23(57) (19) 5.21(20) (81) 5.21(120) 4.78(84) 5.63(13) 6.12(4).024(62) 5(44) (32).084(5) 7.27(33).099(16) 5. 23(24) (16) 5. 68(11) (52) 5.96(60).25(3) 5.37 (43) 6(10) 0(33) 6(18) (39).092(13) 7.51(41).099(33) 5.42(63) (16) 6(15) (63) 6.16(106).32(15) 5.53(94) 6.37(30) 6.36(11) 6(10) 7(13) HARVESTING FORAGES Mowing hay, Conditioning hay,.. Mowing and windrowing hay, Mowing and conditioning hay,peracre... Mowing, conditioning, and windrowing, (129) 1.48 (81) 2.57 (47) 2.80(76) 3.52 (56) (17) 1.53(15) 2.92(9) 2.96(14) 3.75(9) (43) 1.43 (33) 2.37(15) 2.73(30) 3. 29(18) (24) (13) 2.34(8) 2.34 (12) 3.21(12) (45) 1.49(20) 2.69(15) 3.07(20) 3.88(17) a An additional 24 farmers reported charging 1h of the seed.
6 Table 2. - Concluded STATE NORTHERN AREA EASTERN AREA WESTERN AREA SOUTHERN AREA Operation Usual Usual Usual Usual Usual (and No. freq. (and No. freq. (and No. freq. (and No. freq. (and No. freq. of rpt.) rate of rpt.) rate oj rpt.) rate of rpt.) rate of rpt.) rate (dollars) (dollars) (dollars) (dollars) (dollars) Raking hay or straw (84) (11) (26) (15) (32).50-2 per bale (30) - 7(5) (5) (20).02 - Baling only, per bale wire tie... " (112) (5).12-7(42) (26) (39) twine tie (163) (28) -.122(43) (33) (59) Baling and storing, per bale wire tie (46) (4) (18) (6) (18) twine tie (53) (8) (14) (8) (23) Baling round bales, per bale.116(48) (4) (12) (14) (18).12 - Field chopping only Corn silage per hour (51) (14) (12) (9) (16) per ton (36) (10) (8) (5) (13).76- Haylage, per hour (13) Field chopping with wagons and blower Corn silage per hour (51) (14) (12) (9) (16) per ton (36) (10) (8) (5) (13) Haylage, per hour (13) per ton (8) BULLDOZING, per hour 8-foot blade (80) (6) (19) (14) (41) foot blade (96) (5) (29) (27) (35) foot blade (68) (3) (20) (19) (26) MACHINE-TILING, per foot installation only (26).20 - TRENCHING, per foot... (33) (11) (7) (13) -.20 CUTTING BRUSH, per hour using rotary cutter (19) (6) (10) using brush disk (13) (7) by hand (11) (7) -5 CHAIN-SAWING WOOD, per hour (47) (3) (15) (10) (19) 3-6 MOWING WEEDS, per hour power mower (30) (6) (11) (5) (8) tractor mower (60) (11) (21) (12) 4.38(16) 2-6 LOADING MANURE, per hour (52) (13) (14) (9) (16) 3-8 HAULING MANURE, per hour liquid manure (11) solid manure (21) (5) (5) (5) (6) 3.00
7 CLEANING SEPTIC TANK, per tank (19) 2 2Q-40 FEED PROCESSING, per cwt. Grinding grain on the farm..... at the mill Grinding and mixing on the farm at the mill (15).135(23). 178(33) 4(46) (4).133(4) DIGGING POSTHOLES, per hole (71) - 4(7) -.117(18) -.127(10) (36) - SHEARING SHEEP, per head (44) (4) (13) (8) (19) DIPPING SHEEP, per head (8) TRUCKING General trucking, per hour.. Trucking livestock with flat rate, per load...., flat rate, per part load... flat rate, per cwt. up to 50 miles to 100 miles to 150 miles or more miles.... Trucking grain with flat rate, per bushel up to 5 miles to 10 miles to 25 miles to 49 miles or more miles... Trucking grain minimum per bushel, 1 mile.'... plus per bushel mile..... DRYING CORN Flat rate per bushel per point Flat rate or minimum, whichever is more minimum per bushel... or flat rate per bushel per point... Minimum plus bushel-point charge minimum per bushel plus per bushel per point.. Flat rate plus charge per bushel-point of moisture removed above base Base 20.5 percent moisture minimum per bushel... per bushel per point over base Base 25 percent moisture minimum per bushel... per bushel per point above base (33) (19) (12).339(78).385(51).412 (23).450 (11) 0(238) 7(214).061 (149).070(62).078(31) 3 (17) (51).062(28) (12) (34) (5) (5) (15) (5) (2) (33) (31) - 9(25) (12) (7) (8) (4) (9). 153 (11) 7.00(13).344(22).374 (22).430(10).026(85) 2(68) 8(43) 4(11) 1(5) 0(20) 3 (12) (8).124(8) 7.60(5).331 (16).417 (6).417 (3) 6(36) 4(39) 3(31) 8(16).068(5) 0(8).060(5) (12).176(23) 6.68(10).378(25) 3 (18).431 (8) 3(69).061(77).077(51).088(24).092(12) 0(15).070 (7)
8
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