The biennial Nebraska Custom Rates Report is now available through Nebraska Extension on the Center for Agricultural Profitability's website. Information in the report is based on survey data collected from 108 Nebraska respondents with rates included for 123 different custom operations and services.
The report provides market rate information as a reference for those offering custom work and for their potential customers. Custom service providers should also consider ownership and operating costs when setting rates. Information presented in the state summary and full report should be used only as a guide when determining what to charge or pay for custom operations.
Agricultural custom rate charges vary across the state. Therefore, the Nebraska Custom Rates Report groups survey responses by Nebraska Agricultural Statistics Districts. Several factors contribute to rate differences reported by survey participants, including field and job size, soil conditions, and the number of responses received for each operation. Some operators may charge below-market rates to neighbors or relatives. Rates may also change from year to year because of expense differences and local market conditions.
Determining an appropriate charge for custom machine hire and agricultural services should include consideration of current market rates reported in the survey, local demand for specific services, and availability of operators in the area.
Fuel cost is a major machinery expense and fluctuates over time. The 2026 custom rates survey data was received primarily during the first quarter of 2026. The statewide average expected farm-delivered diesel fuel rate reported by participants was $2.93 per gallon, with a range of $2.20 to $4.00 per gallon.
Since the survey period, diesel prices have increased. For example, if diesel fuel rises from $2.93 to $4.11 per gallon, that is an increase of $1.18 per gallon. If a power unit uses 0.85 gallons per acre for a specific operation, an additional $1.00 per acre would be needed to cover the increased fuel cost.
Using Ownership and Operating Costs to Set Rates
In addition to market rates reported in the survey, establishing custom service fees should include machine ownership and operating costs, with a profit margin added if desired.
The Center for Agricultural Profitability developed the Agricultural Budget Calculator (ABC) program to help producers determine production costs for their enterprises, including machinery and equipment costs. Producers and custom operators can use the online program to enter machinery information such as purchase value, expected ownership period, annual use, fuel prices, labor costs, repair expense, and field coverage rates to estimate operating costs per acre.
Fuel, repair, and salvage value calculations from the American Society of Agricultural and Biological Engineers (ASABE) are used in the ABC program.
An example showing machinery cost factors used in the Agricultural Budget Calculator (ABC) program for a corn harvest operation is provided in Table 1. Table 2 shows a field operation cost report generated using ABC for the same example. Equipment size, purchase price, machine age, expected ownership period, and annual use can vary widely by operation.
Table 1. Example Harvest Operation – Machinery Cost Factors Used
| Item | Power Unit | Implement |
|---|---|---|
| Equipment | Combine | Corn Head |
| Fuel Cost | $4.20 per gallon | — |
| Labor Cost | $29 per hour | — |
| List Price | $600,000 | $65,000 |
| Purchase Price | $480,000 | $55,000 |
| Age When Purchased | 1 year | 2 years |
| Expected Ownership Period | 7 years | 8 years |
| Hours at Purchase | 200 | — |
| Annual Usage | 200 hours | 2,500 acres |
| Estimated Fuel Use | 13 gal/hour | — |
| Coverage Rate | — | 8 acres/hour |
Table 2. ABC Field Operation Cost Report – Harvest Example
Equipment | Labor | Fuel | Repairs | Depreciation | Opportunity Cost | Total/Acre |
|---|---|---|---|---|---|---|
| Combine | $3.99 | $7.68 | $5.94 | $16.96 | $7.22 | — |
| Corn Head | — | — | $2.40 | $1.54 | $0.48 | — |
| Total | $3.99 | $7.68 | $8.34 | $18.50 | $7.79 | $46.30 |
Labor rate used in the harvest example is $29 per hour. Diesel fuel cost = $4.20 per gallon.
Field operation cost per acre shown does not include taxes, housing, insurance, or licensing costs (THILM). These expenses are entered in ABC as overhead costs.
Adding 2.5% for THILM ($1.16) to the $46.30 per acre ownership and operating cost results in $47.46 per acre. Adding a 15% profit margin increases the rate to $54.58 per acre, which is $5.29 higher than the $49.29 state average custom rate per acre for harvesting dryland corn reported in the 2026 survey.
Determining a rate to charge for agricultural custom services should be no different than pricing services in any other industry. First, review current market rates such as those reported in the Nebraska Custom Rates Report. Next, calculate total ownership and operating costs. Finally, add a profit margin if desired.
Full summaries from the custom rates survey, including regional rates for the eight Nebraska Statistics Districts and statewide averages, are published as University of Nebraska–Lincoln Extension Circular EC823 and are available on the Center for Agricultural Profitability's website.
