The Iowa Farm Custom Rate Survey for 2023 has revealed that most custom rates have increased by 10-15% compared to the previous year. This survey is based on 94 responses and 2,621 custom rates and provides farmers with a useful benchmark to determine the going rates for various farm services.
Custom planting rates vary depending on the type of planter and setup, ranging from $12.50 to $45 per acre. The average cost for combining corn and soybeans has increased by 12.4% and 10.7%, respectively.
The rise in custom rates can be attributed to various factors, including an increase in input costs, fuel, machinery values, and labor costs. The survey authors have assumed that diesel prices will be $3.39 a gallon in 2023, which is driving the rate increase.
Chad Hart, an agricultural economist with Iowa State University Extension, stated that the 10-15% rate increase parallels the 15-20% production cost increase. Factors driving this increase include general inflationary pressure, continuing supply chain issues, and strong demand for ag inputs and services.
Although there has been a decline in survey participation, the authors encourage more farmers to participate in future surveys as the information provided is still valuable.
Photo Credit: istock-arthon meekodong
Categories: Iowa, General