Custom Rates and Machine Rental Rates

Transcription

1 30. 7 lco Custom Rates and Machine Rental Rates Used on Illinois Farms in 1971 University of Illinois at Urbana-Champaign College of Agriculture Cooperative Extension Service Circular 1070

2 CUSTOM WORK AND MACHINE RENTAL enable farmers to obtain the benefits of sp.ecialized machines that they cannot economic~lly 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 1971, as measured by a survey in June, 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 1971 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. state as a whole and for the four areas shown in the map below. The shown for each operation indicates 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 per- 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 1 Cost information and methods of estimating costs are given in "Figuring Custom and Machine Rental Rates," Worksheet No.6 of Circular Prepared by R. A. Hinton, Associate Professor of Farm Management, and Melvin E. Walker, Jr., Graduate Assistant in Agricultural Economics Urbana, Illinois December, 1972 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. lsm

3 form 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 each operation actually performed in producing the crops. 2. A flat rate for performing all the field operations necessary to produce the crops. 3. Either Method 1 or 2 plus an incentive bonus. Fourteen of the farmers used the first method of summing the charges for each individual operation performed. Those who used the flat-rate method reported the following charges: No. of A ve. rp-t. rate Corn, $32.12 Soybeans, R01nge Several reported that additional charges were made for management services, farm maintenance work, or other special tasks performed beyond the usual field operations. Incentive bonuses for a good job varied from a premmm for getting the crop planted before a specified date to a few cents per bushel over a certain yield. The amounts and specifications for bonuses were so varied that an average would be misleading. Table 1.-Rental Rates Paid for Use of Farm Machines, Illinois, 1971 TILLAGE MACHINERY, Plows Disks Stalk shredder Field cultivator Chisel plow Rotary tiller Row cultivator Rotary hoe PLANTING MACHINERY, Corn planter Grain drill Broadcast seeder FERTILIZING MACHINERY, Anhydrous applicator Liquid fertilizer applicator..... Dry fertilizer spreader flow type broadcast type Aver. (and No. of rpt.) 1.42(16) 1.31(16) (27) 1.24(18) (31) ( 4) (17). 74 (18) (1 4). 99 (17 ).83 (11).73 (35).86 (23).64(12).47 (30) State Most freq. rate (dollars) Table 1. - SPRAYING MACHINERY, Tractor-mounted sprayer..... Trailer sprayer Self-propelled,, high clearance sprayer FORAGE-HARVESTING MACHINERY Mower, Mower and crusher,.... Hay conditioner, Windrower, Hay rake, Hay baler, per day Forage harvester, per day Blower, per day Self-unloading forage wagons per load per day GRAIN-HARVESTING MACHINERY Corn picker, Corn picker and tractor, Picker-sheller, Picker-sheller and tractor, Self-propelled combine, with grain head with picker head Combine pull type, only with tractor Grain wagons per bushel per day Grain elevator, per bushel Grain auger, per bushel Crop dryer, per bushel..... TRACTORS 3 plow, per day plow, per hour per day plow, per hour per day.... MANURE-HANDLING MACHINERY Loader with tractor per load per day Spreader only per load per day Liquid manure spreader only, per day POSTHOLE DIGGER, per hole Only With tractor BRUSH DISK, Concluded Aver. (and No. of rpt.) BUSH HOG (7) per day (3) ROTARY WEED CUTTER Only per day With tractor, per day CHAIN SAW, per day STEAM CLEANER, per day.. State Most freq. rate (dollars) (9) (17) 1.42 (16) (9) (19) (23) (7) (15) (3) 62 (4) (5) (5) (4) (17) (12) (6) 6 (5) 5. 70(29) (32) (5) 5.44 (4).019(9) (4).019(9) (9) (8) (9) (5) (9) 5.93 (7) (10) (3) (7) (3) (7) (4 ) (11 ). 20(13) (10) (7) (3) (4) (9) (8)

4 Table 2.- Custom Rates Paid for Farm Operations, Illinois, 1971 STATE NORTHERN EASTERN WESTERN SOUTHERN Aver. Most Operation (and No. freq. (and No. freq. (and No. freq. (and No. freq. (and No. freq. of rpt. ) rate of rpt. ) rate of rpt. ) rate TILLAGE OPERATIONS, (dollars) (dollars) (dollars) (dollars) (dollars) Plowing cornstalks or beans spring (217) (35) (59) (55) (68) fall (183) (23) (60) (49) (51) Plowing sod spring (155) (24) (35) (43) (53) fall (139) (18) (33) (44) (44) Plowing and fertilizing spring (34) (4) 5.38(8) (13) (9) fall (26) (3) (7) (10) (6) Rotary tilling (9) Disking only stalk ground (169) (28) ( 47) (40 ) (54) plowed ground (156) (26) (43) (37) (50) Disking and applying insecticide (50) (4) 2.45(24) (13) (9) 2-4 Stalk shredding (93) (13) (29) (25) (26) Spike-tooth harrowing (72) -2.93(14) (19) (24) (15) 1-2 Spring-tooth harrowing (43) (6) (11) (12) (14) Chisel plowing spring (96) (8) (32) (23) (33) fall.. (95) (8) (32) (24) (31) Chisel plowing and applying fertilizer (40) (4) (15) (12) (9) Field cultivating only (105) (16) (39) (25) (25) and fertilizing (26) (3) 3.00 (9) (8) (6) 2-5 and applying insecticide (24) (3) 2.82(10) (4) (7) 2-5 Row cultivating 40" row (132) (22) (35) (34) (41) " row (72) (12) (28) (13) (19) Rotary hoeing (143) (21) ( 45) (33) (44).75-2 TILLING AND PLANTING, Field cultivating and planting corn only 40" row (55) (5) (17) (18) (15) " row (36) (4) (13) (11) (8) soybeans only 40" row (50) (4) (17) (17) (12) " row (33) (4) (12) (11) (6) 3-6 corn and applying chemicals 40" row (54) (11) (15 ) (13) (15) " row (31) (4) (10) (11) (6) 2-7 soybeans and applying chemicals 40" row (50) (7) (16) (14) (13) " row (29) (4) (9) (9) (7) PLANTING, Planting corn 40"' row (114) (19) (27) (28) (40) "' row (54) (9) (18) (14) (13)

5 Planting corn and applying chemicals 40" row (109) (18) (27) (26) (38) " row (46) (7) (15) (13) (11) Planting soybeans 40" row. 2.22(92) (14) (22) (25) (31) " row (50) (5) 1.5G (17) (13) (15) Planting soybeans and applying chemicals 40" row (81) G (15) (18) (22) (26) " row (45) 2 1.5G (7) (13) (13) (12) G-5 Drilling small grain alone (86) (9) (18) (25) (34) with grass seed or fertilizer (67) (8) (19) (18) (22) Drilling alfalfa and clover ( 45) (4) 1-2 1(13) (16) (12) G-3 Broadcast seeding (65).SG (3) (13) (20).5G (29).SG-2 APPLYING FERTILIZER, Anhydrous ammonia (206) (29) (58) (53) (66) Mixed dry fertilizer flow type (59) (6) (17) (19) (17) 1.5G-2 truck application (122) (11) (34) (34) (43) 1-2 Liquid fertilizer sprayed on (108) (13) (29) (21) (45) knifed on (78) (14) (26) (19) (19) SPRAYING Mounted or trailer sprayer in field, (145) (21) (42) (34) (48) High-clearance sprayer in field, (112) (15) (41) (28) (28) Fence rows or brush, per hour (55) (9) (14) (16) (16) HARVESTING GRAIN Picking ear corn (130) (26) (31) G (37) (36) per bushel (22) (8) (6) (8) plus per bushel (7) Combining corn, 40" rows (178) (44) (29) (49) (56) per bushel (63) (27) (11) (25) plus per bushel (104) o (6) (31) (22) (45) or per bushel whichever is more (18) (14) per bushel (18) (14) Combining corn, 30" rows (71) (3) (14) (19) (21) per bushel ( 43) (3) (18) (10) (12) plus per bushel (38) (14) (8) (15) Combining and hauling corn (22) (3) (6) (8) (5) per bushel ( 46) ( 4) (21) (7) (14) plus per bushel ( 68) (10) (17) (22) (19) Combining soybeans (328) (50) (91) (72) (115) ,per bushel (15) (3).36(11) Combining oats, (257) (47) G (65) (66) (79) o-7 Combining wheat or barley, (263) D (33) (64) (53) (113) o-7

6 Table 2. - Continued STATE NORTHERN EASTERN WESTERN SOUTHERN Operation (and No. freq. (and No. freq. (and No. freq. (and No. freq. (and No. freq. of rpt. ) rate (dollars) (dollars) (dollars) (dollars) (dollars) Combining clover seed (71) (3) (18) (46) percent of crop ( 67) (5) (11) (50) Combining grain sorghum (53) (4) (6) (7) (36) per cwt ( 4) Shelling corn from crib, per bushel operator only (86) (22) (31) (22) (11) full crew (58) (8) (23) (17) (10) HARVESTING FORAGES Mowing hay, (137) (13) (32) (37) (55) Conditioning hay, (75) (9) (19) (22) (25) 1-2 Mowing and conditioning hay, (90) (9) (21) (27) (33) Mowing and windrowing hay, (52) (5) (13) (18) (16) Mowing, conditioning, and windrowing, (67) (10) (13) (25) (19) Raking hay or straw (85) (9) (21) (27) (28) -2 per bale (34) (9) (22) Baling, per bale wire bale (94) (5) (23) (25) (41) twine bale (175) (20) (28) (50) (77) Baling and storing, per bale wire bale (47) (13) (17) (16) twine bale (57) (5) (11) (20) (21) Baling round bales, per bale. 127(51) ( 4) (24) (22) Field chopping only Corn silage per hour ( 42) (8) (7) (8) (19) per ton (12) 1-2 Grass silage, per hour (18) (5) (8) Haylage, per hour (23) (7) (10) Dry hay, per hour (23) (7) (11) Silo filling with chopper, wagons, and blower Corn silage per hour (24) (5) (5) (7) (7) per ton (18) (4) (10) Haylage, per hour (6) BULLDOZING, per hour Small a 8-foot blade (7) foot blade ( 6) foot blade (3) Mediuma 8-foot blade (36) (3) 19.00(4) (7) (22) foot blade (22) (3) (10) (9) foot blade (11) (1) 20.00(2) 20.00(3) (5) Large& 8-foot blade (13) (5) (2) ~6) foot blade (28) (8) (10) ) 1s:oo foot blade (15) (1) (4) 2Q (6) (4) 2o-32

7 LAND LEVELING ( 4) per hour (8) 3-34 MACHINE-TILING, INSTALLATION ONLY per rod (7) (4) per foot....24(32) (3) (11) (12) (6) TRENCHING, per foot....18(29) (8) (17) CUTTING BRUSH, per hour using rotary cutter or bush hog (32) (12) (15) using brush disk (13) (6) (5) by hand (18) (6) (9) CHAIN-SAWING WOOD, per hour (57) (10) (19) (26) MOWING WEEDS, per hour power mower (26) (6) (10) (8) tractor mower ( 63) (9) (11) (19) (24) LOADING MANURE, per hour (54) (9) (10) (12) (23) HAULING MANURE, per hour liquid (17) (3) (4) (3) (7) solid (24) (5) (8) (9) CLEANING SEPTIC TANK per load (20) (6) (4) (9) per tank (32) (5) (13) (6) (8) FEED PROCESSING, per cwt. Grinding grain on the farm (14) (3).17 (9) at the mill (24) (6) (13) Grinding and mixing on the farm (22) (7) (13) at the mill....16(27) (7) (13) DIGGING POSTHOLES, per hole (63) (3) (9) (20) (31) SHEARING SHEEP, per head (40) (4) (10) (14) (12) DIPPING SHEEP, per head....57(7) (1) (1). 62 ( 4) (1) TRUCKING General trucking, per hour (37) (8) (9) (9) ~ 7.64(11) Trucking livestock with flat rate, per load (17) (4) {13) flat rate, per part load ( 14) (4) (10) flat rate, per cwt. up to 10 miles (50) (15) (13) (19) to 20 miles....34(50) (15) (12) (20) to 50 miles (44) (12) (11) (18) to 100 miles (33) (10) (7) (12) to 150 miles (16) (5) (5) or more miles... (7) a Tractors with maximum drawbar horsepowers of less than 67. are considered small; those from 67 to 135, medium; and those 135 and above, large.

8 Table 2. - Concluded STATE NORTHERN EASTERN WESTERN SOUTHERN Operation (and No. freq. (and No. freq. (and No. freq. (and No. freq. (and No. freq. (dollars) (dollars) (dollars) (dollars) (dollars) Trucking grain with flat rate, per bushel up to 5 miles (151) (32) (46) (32) (41) to 10 miles (129) (31) (32) (28) (38) to 20 miles (103) (25) (23) (28).o (27) to 30 miles (63) (18) (12) (18) (15) to 40 miles (36) (12) (15) (7) to 50 miles (21) (5) (9) (5) or more miles (18) (7) (6) (5) DRYING CORN Flat rate per bushel per point (38) Flat rate or minimum, whichever (7) (8) (13) (10) is more minimum per bushel (30) (4) (11) (9) (6) or flat rate per bushel per point Flat rate plus charge per bushel-point removed above base (20.5 percent) minimum per bushel (20) (7) (9) (3) plus per bushel per point over base