Custom Rates Report 2024

Amy Timmerman, Extension Educator Author

06/26/2024 Added

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The 2024 Nebraska Custom Rates Report, which offers insights for agricultural producers and service providers, is now available through Nebraska Extension and the University of Nebraska-Lincoln’s Center for Agricultural Profitability. The report, published at cap.unl.edu/customrates, compiles survey data from 159 respondents, providing current market rates for 138 different custom operations and services across Nebraska.

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[00:00:00.520]This is Amy Timmerman with Nebraska Extension and this week’s Extension Update.
[00:00:05.396]The 2024 Nebraska Custom Rates Report, which offers insights for agricultural
[00:00:10.039]producers and service providers, is now available through Nebraska Extension
[00:00:14.819]and the University of Nebraska-Lincoln’s Center for Agricultural Profitability.
[00:00:19.580]The report, published at cap.unl.edu/customrates,
[00:00:25.699]compiles survey data from 159 respondents, providing
[00:00:29.699]current market rates for 138 different custom
[00:00:33.934]operations and services across Nebraska.
[00:00:37.704]This comprehensive resource serves as an essential guide
[00:00:40.724]for those offering and seeking custom agricultural services.
[00:00:44.584]While the report offers a detailed overview of market trends,
[00:00:48.204]custom service providers are encouraged to consider their own
[00:00:52.014]operational costs when determining their rates.
[00:00:55.714]Agricultural custom rate charges can vary across the state.
[00:00:59.714]Therefore, the Nebraska Custom Rates Report provides rate details
[00:01:03.808]from survey responses grouped by Nebraska Agricultural Statistics Districts.
[00:01:08.190]Several factors contribute to rate differences reported
[00:01:11.220]by survey participants, including field and job sizes, soil conditions
[00:01:15.930]and the number of responses for the various operations.
[00:01:19.930]Some operators may charge lower than market rate prices to neighbors or relatives.
[00:01:24.819]Rates can change from year to year due to expense differences and local market forces.
[00:01:29.566]Determining appropriate charges for custom machine hire and
[00:01:32.968]agricultural services includes consideration of various elements
[00:01:36.858]such as current market rates reported in the custom rates survey report, market
[00:01:41.358]demand in the area for specific types of custom work, and availability of services.
[00:01:47.076]Aside from the custom rates reported by Nebraska operators in the survey,
[00:01:51.156]establishing custom rate fees should involve calculation of machine ownership
[00:01:56.025]and operation costs, with a profit margin added if desired.
[00:02:00.025]The UNL Center for Agricultural Profitability developed the
[00:02:04.025]Agricultural Budget Calculator (ABC) program to assist producers in
[00:02:08.025]determining cost of production for their enterprises, which
[00:02:11.955]includes machinery and equipment costs used in agricultural operations.
[00:02:16.326]Producers and custom operators can utilize the online program,
[00:02:19.986]agbudget.unl.edu to enter their machinery and equipment
[00:02:24.836]information such as purchase value, length of anticipated ownership,
[00:02:28.836]and other key machinery information such as coverage rate, along with
[00:02:33.644]fuel prices, labor costs, and estimated annual repair expense
[00:02:37.644]for each machine to determine operation costs per acre.
[00:02:41.394]Fuel, repair, and salvage value cost factors and calculations
[00:02:45.394]from the American Society of Agricultural and Biological
[00:02:48.403]Engineers are utilized in the ABC program.
[00:02:52.304]Determining a rate to charge for agricultural
[00:02:54.919]custom services should be no different than
[00:02:57.149]establishing prices for other industry business services.
[00:03:00.869]First, observing current market rates or prices,
[00:03:04.149]as provided in the Nebraska Custom Rates report or
[00:03:07.049]other resources that provide such information, then figuring
[00:03:10.639]total operating and ownership costs, and if desired, adding
[00:03:14.499]an extra amount or profit margin to the price charged.
[00:03:18.000]Full summaries from the custom rates survey,
[00:03:20.709]including regional rates for the eight Nebraska
[00:03:22.793]Statistics Districts and the overall state, are
[00:03:25.413]published as University of Nebraska-Lincoln Extension
[00:03:28.087]Circular or EC823 and available at: cap.unl.edu/customrates.
[00:03:36.920]The information presented in the state summary and
[00:03:39.800]full report should be used only as a guide when
[00:03:43.170]determining what to charge or pay for custom operations.
[00:03:47.240]Or you're welcome to drop by your local
[00:03:49.030]extension office to receive a copy of this publication.
[00:03:51.755]This has been Amy Timmerman with Nebraska Extension.

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Custom Rates Report 2024

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