By Scout Nelson
As farm equipment costs continue to rise, the practice of offering custom services for field operations has become a viable option for many in the agricultural sector. This strategy allows equipment owners to distribute their investment costs over a larger acreage, while others benefit from custom services to manage their capital investments effectively.
The Center for Agricultural Profitability at the University of Nebraska-Lincoln plays a crucial role by gathering data from service providers and publishing the biennial Nebraska Custom Rates report. This report is a valuable resource for those involved in field operations, detailing general service rates and specific charges for various agricultural activities. The next iteration, focusing on livestock-related custom work, is currently soliciting responses through February 28, 2025.
The 2024 report covers essential operations such as tillage, drilling, planting, and no-till drilling of soybeans, small grains, and cover crops. It also provides a comprehensive range of rates per operation, including detailed analyses for specific practices like row crop planting with or without additional equipment like coulters and band applicators. For example, the state average rate for basic no-till planting operations stands at $23.94 per acre, with the most reported rate being $25 per acre.
Moreover, the report encourages operators to consider additional costs when setting their rates. This includes operational and ownership expenses calculable through tools like the Agriculture Budget Calculator (ABC) provided by the university. The ABC program helps estimate costs based on factors such as machine depreciation, repairs, and overhead expenses, contributing to more accurate rate setting.
By providing both the reported rates and tools for calculating individual costs, the Nebraska Custom Rates report serves as a comprehensive guide for custom operators. This dual approach ensures that they not only remain competitive but also cover their costs effectively, ensuring sustainability in their operations. As custom services continue to play a pivotal role in agriculture, such resources are invaluable for ensuring economic viability and strategic planning in the agricultural community.
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Categories: Nebraska, General