Ohio Farm Custom Rates 2024

By Barry Ward, Leader for Production Business Management and Director of OSU Income Tax School for OSU Extension – Published in the Farm Office Blog – https://farmoffice.osu.edu/blog

Ohio Farm Custom Rates 2024

Barry Ward, Eric Richer, John Barker, and Amanda Bennett, OSU Extension

Farming is a complex business and many Ohio farmers utilize outside assistance for specific farm-related work. This option is appealing for tasks requiring specialized equipment or technical expertise. Often, having someone else with specialized tools perform tasks is more cost-effective and saves time. Farm work completed by others is often referred to as “custom farm work” or more simply, “custom work”. A “custom rate” is the amount agreed upon by both parties to be paid by the custom work customer to the custom work provider.

Custom rates increased for the majority of field operations in 2024 as compared to surveyed rates in 2022 but the increases did vary by operation. Examples include an increase of 6% for Planting Corn (30 Inch Rows with Fertilizer Application), 5.6% for Harvesting Corn (Combine, Grain Cart, Haul Local to Farm), 21% for Spraying (Self-Propelled Sprayer, Crop Protection Chemicals) and 24% for Field Cultivator.

New field operations in this year’s survey and summary include drone/UAV application and cover crop seeding.

Ohio Farm Custom Rates

The “Ohio Farm Custom Rates 2024” publication reports custom rates based on a statewide survey of 333 farmers, custom operators, farm managers, and landowners conducted in 2024. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and labor for the operation.

Some custom rates published in this study vary widely, possibly influenced by:

  • Type or size of equipment used (e.g. 20-shank chisel plow versus a 9-shank)
  • Size and shape of fields
  • Condition of the crop (for harvesting operations)
  • Skill level of labor
  • Amount of labor needed in relation to the equipment capabilities
  • Cost margin differences for full-time custom operators compared to farmers supplementing current income

Some custom rates reflect discounted rates as the parties involved have family or community relationships. Discounted rates may also occur when the custom work provider is attempting to strengthen a relationship to help secure the custom farmed land in a future purchase, cash rental or other rental agreement. Some providers charge differently because they are simply attempting to spread their fixed costs over more acreage to decrease fixed costs per acre and are willing to forgo complete cost recovery.

Charges may be added if the custom provider considers a job abnormal such as distance from the operator’s base location, difficulty of terrain, amount of product or labor involved with the operation, or other special requirements of the custom work customer.

The data from this survey are intended to show a representative farming industry cost for specified machines and operations in Ohio. As a custom farm work provider, the average rates reported in this publication may not cover your total costs for performing the custom service. As a customer, you may not be able to hire a custom service for the average rate published in this factsheet.

It is recommended that you calculate your own costs carefully before determining the custom rate to charge or pay. It may be helpful to compare the custom rates reported in this fact sheet with machinery costs calculated by economic engineering models available online. The following resources are available to help you calculate and consider the total costs of performing a given machinery operation.

  • Farm Machinery Cost Estimates, available by searching University of Minnesota.
  • Illinois Farm Management Handbook, available by searching University of Illinois farmdoc.
  • Estimating Farm Machinery Costs, available by searching Iowa State University agriculture decision maker and machinery management.

Volatility in diesel price may sometimes cause concern for custom rate providers that seek to cover all or most of the costs associated with custom farm operations. The approximate price of diesel fuel during the survey period (January – April 2024) ranged from $3.20 – $3.50 per gallon for off-road (farm) usage. As a custom farm work provider, if you feel that your rate doesn’t capture your full costs due to fuel price increases you might consider a custom rate increase or fuel surcharge based on the increase in fuel costs.

The complete “Ohio Farm Custom Rates 2024” publication is available online at the Farm Office website:

https://farmoffice.osu.edu/farm-management/custom-rates-and-machinery-costs

Regional Updates: June 25 – July 1, 2024

By Rylee Kay Puthoff, Shelby County Extension Educator, Agriculture and Natural Resources, Trevor Corboy, Brown County Extension Educator, Agriculture & Natural Resources and Community Development, Lee Beers, CCA, Trumbull County Extension Educator, Agriculture and Natural Resources, Allen Gahler, Sandusky County Extension Educator, Agriculture and Natural Resources, Ted Wiseman, Perry County Extension Educator, Agriculture and Natural Resources, Stephanie Karhoff, CCA, Field Specialist, Agronomic Systems  – Published in the Agronomic Crops Network C.O.R.N Newsletter – https://agcrops.osu.edu/

Heavy rainfall in the northwest and northeast corners of the state paused wheat harvest and 2nd cutting hay, but the southern half of Ohio remains very dry as we head into the week. Hot issues this week include weed escapes and weather stress. Keep reading for region-specific details.

Central & West Central – Rylee Kay Puthoff of OSU Extension Shelby County shared that wheat harvest is 90% complete, with growers continuing to bale straw. Soybean is in fair condition overall and ranges from V4 to R1 (flowering), with reports of both giant ragweed and waterhemp escapes. Corn is in good condition with early planted fields beginning to tassel.  The region received anywhere from 0.5 – 2 inches of rainfall.

Southeast – Ted Wiseman of OSU Extension Perry County reported that wheat harvest and first cutting hay are finished, with second cutting for alfalfa underway in parts of southwest Ohio. The area remains very dry with low soil moisture levels impacting pasture fields. Corn and soybean are both in fair condition with a wide range of growth and development.

Southwest – Trevor Corboy of OSU Extension Brown County reported that southeast Ohio remains dry after receiving less than 0.5 inches of rain this week. Soybean is in poor condition with replanting still occurring in some areas. Corn is in fair condition and wheat harvest is about 95 percent complete.

Northeast – Extension Educator Lee Beers reported that wheat harvest is 30% complete in northeast Ohio, and despite isolated heavy rainfall across the area (≥7 inches in portions of Ashtabula County), soil moisture levels are approaching dry.  Both soybean and corn are in good condition and approaching early reproductive stages in early planted fields. Weed escapes noted this week include redroot pigweed and horse nettle.

Northwest – Al Gahler of OSU Extension Sandusky County shared that wheat harvest is 40% complete in Northwest Ohio as most of the region received excessive rainfall this past week. Soybean is in fair condition and anywhere between VE in replanted fields and R1 in April planted fields. Yellowing was observed some soybean fields, likely due to weather stress and other factors. Corn is in fair condition and insect numbers remain relatively low.

What’s Wrong with Stacking Round Bales?

Amber Friedrichsen, Associate Editor, Hay and Forage Grower – Published in the Sheep Team Newsletter https://u.osu.edu/sheep/ (Previously published in Hay & Forage Grower: July 2, 2024)

(Image Source: Hay & Forage Grower)

Moving round bales out of a field and under cover may seem like one more item on the to-do list of a busy hay season, but rushing to complete this step may result in improper storage that can squander the forage yield and quality farmers worked so hard to achieve.

In a recent article from the Midwest Forage Association’s Clippings newsletter, Sarah Bauder with South Dakota State University encourages best storage practices to conserve dry matter and quality in round bales. The forage field specialist suggests bale storage is just as important to product value as plant maturity, harvest management, and pest control.

Dry matter and quality losses occur when water is trapped in hay and causes spoilage. This can be exacerbated by several factors, including hay binding, storage structures, bale stacking, and time.

Densely made bales are better equipped to exclude excess moisture, and the shape of a round bale is more conducive to shedding water compared to a square one. Bauder added that different forage species have different water-shedding capabilities. For example, grasses have broad, flat leaf blades that can prevent water from penetrating bales better than smaller alfalfa leaves.

Field day findings
At a field day in 2019, Bauder conducted a demonstration with an electric probe to measure moisture levels in bales that were stored on various sites at a farm that received over 20 inches of rainfall throughout the season. Approximately 50 samples were taken at an 8-inch depth from the flat face of each bale and used to create spatial maps of moisture.

For bales stored under an open shed, approximately 98% of the sampling area measured 20% moisture or less. Conversely, more than two-thirds of the sampling area of bales stored outside in tightly packed rows exceeded 22% moisture. Bales stored in the middle and bottom tiers of a stacked pyramid shape retained even more moisture, with over 35% of the sampling areas exceeding 30%.

“Water tends to shed from upper bales into the lower layer where limited air movement and sun exposure deteriorate the bales,” Bauder explains. “The bottom bales also tend to squat, creating more contact with the ground and increasing moisture wicking.”

Mushroom stacking — or placing one bale on its flat side and placing a second bale on its round side on top — caused the most spoilage. In fact, data showed more than 45% of the sampling area of the bottom bale in a mushroom stack was over 35% moisture.

Overall, Bauder said the results from the field day aligned with typical storage recommendations. Protecting round bales under a roof is the best option; however, there are ways to prevent spoilage if bales must be stored outside.

  • Avoid stacking bales. If bales must be stacked due to limited storage space, cover the pile with plastic.
  • Utilize net wrap instead of twine to help bales shed excess water and maintain integrity and shape.
  • Do not place bales in a shaded area; keep them in the sun as much as possible. This allows for better drying after bales have been exposed to precipitation.
  • Locate a south-facing slope for bale storage to promote water drainage. Additionally, establish a well-drained surface, such as gravel or a rock pad, to further reduce water wicking.
  • Orient bales in rows from north to south with 3-4 feet in between rows. Bauder notes that butting bales together tightly protects the flat faces from rain and snow accumulation, whereas a 12-18-inch gap between individual bales allows for better airflow. With that said, there is no research consensus on the ideal distance between bales.

Keep Cool in the Shade

Dr. Jeff Lehmkulher, PhD, PAS, Extension Professor University of Kentucky – Published in Ohio BEEF Cattle Letter – https://u.osu.edu/beef/

Temperature and humidity both contribute to heat stress.

As the summer weather has hit full stride, take some time to focus on factors that impact animal performance during these months. Stocker calf performance reflects changes in the environment, plane of nutrition, and overall health of calves. Be mindful of the how summer weather can impact these three overarching factors and consider what you might alter or maintain to minimize the impact of these elements.

Heat stress is the first environmental factor that will impact animal performance during the summer months. The effect of heat stress is exacerbated by the alkaloids produced by the wild endophyte in Kentucky 31 tall fescue. Animals compensate during heat stress with increased respiration rate, increased skin vaporization (sweating), increased peripheral blood flow, decreased appetite to reduce metabolic heat production, and more time seeking relief by standing in the shade, congregating in water or grouped up in areas where urine and feces create a wallow. Increased respiration rate leads to greater energy expended for contraction and relaxation of the diaphragm. This doesn’t seem like it would be a big loss but sit there and double your breaths per minute for five minutes and see how you feel. Now consider doubling your respiration for several hours a day and the impact this would have on energy expended. Previous research has shown that cattle at thermoneutral conditions had respiration rates of about 23 breaths per minute while under heat stress this increased to 54 breaths per minute. This increased respiration rate is a key response to heat stress as well as increasing blood flow to periphery.

Compensation of heat stress can also occur through increased sweating or evaporative heat loss as periphery blood flow increases. Skin evaporative energy loss was observed to be 50% greater under heat stress than thermoneutral. However, when exposed to wild-type endophyte, skin vaporization was not increased due to a lack of skin temperature increase which may be attributed to vasoconstriction. Accumulated heat load by animals can be dissipated later into the night when ambient temperatures decline. However, during periods of high humidity and lack of nighttime temperatures falling, animals do not have significant reductions in core body temperature before the next day begins. Successive days of heat stress and minimal dissipation of accumulated heat load leads to severe health concerns for cattle. Add into the mix, the alkaloids from the wild endophyte in tall fescue leading to vasoconstriction reducing blood flow to the skin surface during these night hours limiting heat dissipation from sweating. All these factors combine to increase animal maintenance requirements by 7-25%. If maintenance energy requirements represent 65% of normal daily intake, a 15% increase in maintenance requirements as a result of heat stress would reduce gains significantly.

Providing shade is the first management strategy to help mitigate heat stress during the summer months. Shade helps to reduce heat loading from solar radiation. Additionally, ground surface temperatures under shade have been shown to be greatly reduced compared to unshaded areas. Shade can be natural such as wooded areas or man-made. Cattle will stand more during heat stress to allow more convection heat loss as air moves around the body. Shade should ideally provide sufficient room for cattle to stand in the shade without being crowded.

Often the question is how much shade should be provided. Consider the length from tip of nose to tail and width across the ribs of a mature cow. These measurements may be near 7’ x 3’ or 21 square feet and these measurements will vary. Spacing between animals is important so the actual shade provided will be greater than the size of the animal. Actual allocated area under shade of 30-40 square feet per cow may be necessary. The University of Nebraska recommends 20-25 square feet per animal for voluntary shade use in feed yards and 25-30 square feet for high-risk feeders on arrival. For man-made structures, ensure there is sufficient distance between the back of the animal while standing and the bottom of the shade structure to facilitate air movement through the structure. When possible, having shade structures that are portable will minimize wallows which can lead to high humidity under the shade from excessive urine and feces deposition. Additional information on shade structures can be found at https://www2.ca.uky.edu/agcomm/pubs/aen/aen99/aen99.pdf.

Consider developing shade areas during periods of higher temperatures and humidity to maintain the performance of grazing cattle if wooded areas are not readily available. Temporary electric fencing can be helpful in allocating different areas of wooded areas to minimize soil disturbance under trees and preventing development of wallows. Shade placed on ridges that have greater wind speeds will aid in moving air through the structures and cooling cattle. Ensure cattle have access to fresh, clean water as losses from sweating and increased respiration rates increase water requirements. Consider utilizing CAIP funds for shade or tree plantings for development of natural shade areas. Contact your county Extension office for additional information.

Regional Updates: June 18 – 24, 2024

By Mark Badertscher, Hardin County Extension Educator, Agriculture and Natural Resources, Jordan Penrose, Morgan County Extension Educator, Agriculture and Natural Resources, Nick Eckel Wood County Extension Educator, Agriculture and Natural Resources, Lee Beers, CCA, Trumbull County Extension Educator, Agriculture and Natural Resources, Brooks Warner, Clinton County Extension Educator, Agriculture and Natural Resources, Stephanie Karhoff, CCA, Field Specialist, Agronomic Systems  – Published in the Agronomic Crops Network C.O.R.N Newsletter – https://agcrops.osu.edu/

Scattered showers brought relief to some, but many areas remain dry. Field issues Ohio State University Extension Educators and Specialists have seen or heard of this past week include potato leafhopper on alfalfa and emerging waterhemp. Keep reading for region-specific details.

Central and West Central – Mark Badertscher of OSU Extension Hardin County reported that wheat harvest began late last week in Central and West Central Ohio, with an estimated 25-50% of fields harvested in the region. Reported yields have ranged between 80 and 115 bu/ac. Area growers have taken advantage of an early wheat harvest and begun double crop planting of soybean. Other field activities included side dressing corn, spraying post emergent herbicides, and second cutting hay. Rainfall was extremely variable, from a few tenths to over 1.5 inches in other areas.

Southeast – Jordan Penrose of OSU Extension Morgan County shared that both corn and soybean remain in good condition, despite the warm, dry weather this past week. First cutting hay is finished in the region and second cutting is underway. Reported hay yields have been average to above average so far.

Northwest – Wood County Extension Educator Nick Eckel reported that soil conditions remain dry in northwest Ohio with rainfall anywhere between .1 and 2 inches this past week. Soybean is in fair condition and between V1 and V4 growth stages. Corn is in good condition with early planted fields reaching the V8 growth stage. There are growing concerns of tar spot since it has been seen in Indiana, but there have been no confirmed reports in Ohio for 2024 so far. (Remember that the optimum fungicide timing for tar spot is between VT (tassel) and R3 (milk), based on research conducted by State Specialist Dr. Pierce Paul.) Potato leaf hopper was seen in area alfalfa fields, so growers who have yet to making second cutting should scout for potato leaf hopper and the tell-tale symptom of “hopperburn.” For more information on this pest, see the factsheet here. Wheat harvest began last week with reported moisture levels of 13-18% with average to above average yields.

Northeast – Lee Beers of OSU Extension Trumbull County reported that dry weather this past week provided a much-needed window for applying herbicides, as waterhemp continues to emerge and rapidly grow to the point that control is no longer as effective (Figure 1). Other field activities included soybean replant in low-lying areas and second cutting hay.

Southwest – Clinton County Extension Educator Brooks Warner shared that 20% of wheat harvest is completed in southwest Ohio. Area growers have also been able to make spray applications and make hay between scattered rainstorms this past week. The main field issue facing the region currently is poor weed control, specifically giant ragweed and waterhemp.