Setting Custom Rates for Fall Harvest

Setting Custom Rates for Fall Harvest
Farm and Ranch Management Analyst
Photo of combine harvesting soybeans.

Real Ag Stock

We’re approaching the fall harvest again, so harvest rates are a topic of interest. Custom rates for harvesting operations in Nebraska have continued to increase based on data gathered from the latest biennial Nebraska Custom Rates Survey completed in 2024. Custom rate figures are provided by operators who perform custom hire services and respond to the survey.  The first several pages of Part II of the 2024 report provide custom rate figures for harvesting grains and soybeans, followed by updated figures for hauling operations for grain and hay. The report is one source custom operators may use to help determine what to charge for agricultural custom services. In addition, it is recommended that machine operation costs be calculated and other factors considered as custom rates are set.  

Harvest operations on a rate-per-acre basis across Nebraska were widely reported in the survey for soybeans, irrigated corn, and dryland corn. Additional rate information is available in the report on combining high-moisture corn, grain sorghum, and dry edible beans on a rate-per-acre basis. Rate information is published for various custom operations by the Nebraska Agricultural Statistics Districts as long as at least three responses are received.

2024 custom rates information provided in Table 1 shows a significant increase in per-acre harvest rates for corn and soybeans. The state average for harvesting irrigated corn increased 14.9% to $47.84 per acre for 2024, a 15.9% increase in the combining dryland corn rate state average rate to $45 per acre, and soybean harvest rate increased to $46 per acre from $40.18 per acre two years ago as the state average.

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Table 1. 2024 NEBRASKA CUSTOM RATES - PART II
CUSTOM PRACTICENEBRASKA AGRICULTURAL STATISTICS DISTRICTS
Northwest North Northeast Central East Southwest South Southeast STATE
All Units in Dollars Unless Specified
HARVESTING GRAINS & SOYBEANS
COMBINING IRRIGATED CORN, flat rate per acre
Number Reporting 7 7 16 10 19 3 4 25 83
Average Rate 36.57 44.00 41.13 48.30 44.53 44.00 46.75 39.72 41.63
Range 30.00-45.00 35.00-55.00 32.00-50.00 35.00-60.00 32.00-60.00 42.00-45.00 37.00-60.00 30.00-60.00 30.00-60.00
Most Common 35.00 45.00 40.00 45.00 45.00 45.00 - 35.00 40.00
COMBINING DRYLAND CORN, flat rate per acre
Number Reporting 7 5 18 8 18 3 # 27 80
Average Rate 30.43 43.00 37.89 44.75 41.11 39.00 - 39.72 38.82
Range 20.00-38.00 35.00-50.00 25.00-48.00 35.00-60.00 32.00-55.00 36.00-45.00 - 27.50-55.00 20.00-60.00
Most Common 30.00 45.00 40.00 45.00 45.00 36.00 - 35.00 35.00
COMBINING SOYBEANS, flat rate per acre
Number Reporting # 6 18 12 26 3 6 36 98
Average Rate - 43.00 40.33 45.71 40.87 43.67 41.17 38.42 40.18
Range - 40.00-50.00 25.00-70.00 35.00-60.00 32.00-50.00 36.00-50.00 35.00-50.00 30.00-55.00 25.00-70.00
Most Common - 40.00 40.00 45.00 35.00 - 35.00 35.00 40.00

Chart 1 shows rate increases for corn and soybean harvest operations from 2016 to 2024 based on data gathered from recent Nebraska Custom Rates Surveys.

Custom Harvest Rates per acre chart.

The Nebraska Custom Rates report is prepared to guide operators and those utilizing such services. As long as adequate data is available, the report provides state average rate information along with figures for the eight crop reporting districts in Nebraska. However, the information contained in the report is just one source. Custom service providers should also consider their operational and ownership costs and charge for their work accordingly.  

The Center for Ag Profitability’s (CAP) Agriculture Budget Calculator (ABC) program can be utilized to determine harvest operation and ownership costs per-acre. Data inputted in the ABC program to figure ownership and operation costs for power units (combine) and implements (headers) includes the following:  1) list prices of comparable machines, 2) purchase price, 3) age when purchased, 4) expected years of ownership, 5) hours on power units and acres, and 6) coverage rate information. The program calculates salvage value for depreciation and repairs using the American Society of Agricultural and Biological Engineers (ASABE) formulas. Fuel, labor, and opportunity costs of investment are also figured from inputted data. Overhead costs such as taxes, housing, and insurance (THILM expenses) should also be factored into total costs.  

The following Field Operation Costs /Acre chart was created in the Agricultural Budget Calculator program using sample figures for a 270 hp combine and corn head. For this example, the field operation cost per acre is estimated at $61.43 (not including THILM).  

For the example described above, the power unit and implement figures entered and calculated in the ABC program are shown below. (screenshots taken from the ABC program and used in the field operation costs /acre calculation)

Power Unit - Combine

The calculated per-acre field operation cost for this example is $61.43. This amount is $13.59 higher than the 2024 statewide average custom rate for irrigated corn harvest of $47.84. With this information, a custom operator should consider these figures in setting their price, along with other factors such as their time available to provide custom hire services, the overall demand in the area, and current harvest conditions.   

Glennis McClure
Extension Educator – Agricultural Economics
gmcclure3@unl.edu  402.472.0661

 

 

Reference:

McClure, G. and Jansen, J. “2024 Nebraska Farm Custom Rates,” Center for Agricultural Profitability, University of Nebraska-Lincoln, May 2024.

https://extensionpubs.unl.edu/publication/ec823/2024/pdf/view/ec823-2024.pdf