i had a local guy approach me looking to plunk some money down on some farmland he has a line on. i think its like 210 acres or so. he wanted to sit down over some beers and pick my brain as to what i thought about about a guy like him dipping his toe in the waters of farming. ill give him the low down on his options but i am really thinking is he is gonna want me to custom farm it for him untill/when he decides its something he really wants to invest his time and money in. enough with the background already...my question is for anyone who has a knowledge of what i should be charging him per acre. and what services am i providing? also wondering from u guys that actually do this sort of custom farming what your $/A charge is. i know a number can look ok and profitable on paper but sometimes it doesn't actually translate into the real world...whats the real world figure?
I have been custom farming for quite a few years. I have based my rates off of the Iowa custom farming spreadsheet. I plant with VR seed, in furrow fert for 15$/ acre, 2x2 fert is more. I was doing field finishing last year for around $13.00 an acre. I cut loose most all of my custom combining last fall but I was going to be around $32 for beans, $35 for corn per acre, this includes yield mapping. The combine charge includes a cart and a operator. If I am going to combine this fall for anyone it might be more, the expense on keeping a combne up is d a m n high.
AND to make it even more interesting, take the price of brass...end of December, and today, 18% increase....be sure
to have a flexible clause dealing with fuel, along with iron and labor...JMHO...unless you have everything in place
for the coming year....then worry about next year when you get there...
Is the land all in one chunk or atleast in the same area? With the price of rubber now a days you aren't making any money running up and down the road to custom farm 10 acres here and 20 acres there. Also if it is large square fields it makes a big difference. Nothing worse than pizzing around in a field with wedges and/or curves and jogs. Remember you are most likely getting paid by the acre, not the hour so figure accordingly. For us we are charging in the $18-$22/acre range for planting corn depending on if it's with or without fert. and how much they want applied, $17.50/acre for soybeans and $28 for combining soy and $32 for corn unless it is wet and then the price goes up up up. LOL good luck and be safe everyone........Steiger
Greengold Ohio ag has a page of custom farming rates by region. Check to see if there is similar info available in your state. We used to do a lot on shares at various percentages and responsibilities. That may still be an option in your area and it incentivize's you to help get the yields up.
Custom rates, slaves wages, is interesting in all past years , they looked at last years rates, and that determined the next years average rate, but it also determermend this years rate. For this years rate is always determine by last years rate, every year.
when people are charging 15 an acre now,they shold be charging 45 an acre now, if they werent slaves, but actual bussiness people making money.