by Ann M. Johanns, extension program specialist, Iowa State University
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| Ann Johanns |
Many Iowa farmers hire some custom machine work in their farm business or perform custom work for others. Others rent machinery or perform other services. The Iowa Farm Custom Rate Survey was mailed to 371 people by the U.S. Postal Service and 633 people via e-mail in February 2025. The information below is based on a survey of 193 responses and 3,703 custom rates provided by Iowa farmers, custom operators, and farm managers.
For each type of work, the average rate from the survey, the median, and the range are shown. The average is calculated as the simple average of all responses. The median is the middle number among the ordered responses (from smallest to largest). The reported range excludes the minimum and the maximum values to avoid reporting outliers.
The sources of the 3,446 rates reported for custom operations are: 54% service providers, 25% service users, 6% both service providers and users, and 15% unknown. The sources of the 92 rates reported for machinery rentals are: 56% machinery owners, 23% machinery renters, 8% machinery owners and renters, and 13% unknown. The sources of the 165 rates reported for wages are: 86% employers, 5% employees, 2% employer and employee, and 7% unknown.
The reported rates are expected to be charged or paid in 2025, and they include fuel and labor (unless otherwise noted). The average price for diesel fuel (highway-retail including taxes) was assumed to be $3.66 per gallon (as projected by the U.S. Energy Information Administration in early February 2025). Rental rates for some machinery items are shown in the last section of the report, along with a worksheet for estimating rental rates for other items.
This rate schedule is intended only as a guide. Actual custom rates may vary according to availability of machinery in a given area, timeliness, operator skill, field size and shape, crop conditions, and the performance characteristics of the machine being used.
Note: All rates include fuel, repairs, depreciation, interest, labor, and all other machinery costs for the tractor and implement, unless otherwise noted.
More on estimating machinery costs and machinery management can be found on the Ag Decision Maker website here.
The information available in the Iowa Farm Custom Rate Survey is only possible due to the responses provided each year. If you are interested in joining the 2026 Iowa Farm Custom Rate Survey mailing list, send your mail or email address to: Ann Johanns, Iowa State University, Borlaug Learning Center, 3327 290th St., Nashua, IA 50658, 515-337-2766, or [email protected].
The Iowa Farm Custom Rate Survey is presented in the accompanying “pdf” file that you can access by clicking here.
View past publications of the Iowa Farm Custom Rate Survey here.
