Farm Management

Ohio Farm Custom Rates: 2024

Barry Ward, Director, OSU Extension Income Tax School Program; Leader, Production Business Management
Eric Richer, Associate Professor and Field Specialist, Farm Management
John Barker, OSU Extension Educator ANR, Knox County
Amanda Bennett, OSU Extension Educator ANR, Miami County

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.

Ohio Department of Agriculture Announces Free Farm Pesticide Disposal Collection Events

REYNOLDSBURG, Ohio (May X, 2024) – The Ohio Department of Agriculture (ODA) will sponsor three collection events for farmers wishing to dispose of unwanted pesticides. This year, the collections are happening in

Auglaize, Holmes, and Clinton counties on the following days and locations:

  • August 14, 9 a.m.–3 p.m.: Auglaize County, Auglaize County Fairgrounds, 1001 Fairview Drive, Wapakoneta, Ohio 45895
  • August 15, 9 a.m.–3 p.m.: Holmes County, Farmers Produce Auction (Mount Hope Produce Auction), 7701 OH-241, Millersburg, Ohio 44654
  • August 20, 9 a.m.–3 p.m.: Clinton County, Former Nutrien Site, 6704 US 22, Willmington, Ohio 45177

The pesticide collection and disposal services are free of charge, but only farm chemicals will be accepted. Paint, antifreeze, solvents, and household or non-farm pesticides will not be accepted. The pesticide collections are sponsored by ODA in conjunction with the U.S. Environmental Protection Agency. To pre-register, or for more information, contact the Ohio Department of Agriculture at (614) 728-6987.

Williams County Reinstates Ag Hall of Fame

Williams County has a rich tradition in agriculture; however, members of the agriculture community often go unnoticed or unrecognized. The goal of the Agriculture Hall of Fame is to recognize hardworking members of our agriculture community. After a nine-year hiatus, the Williams County Agriculture Hall of Fame is restarting in the 2024 calendar year.

 

The purpose of the Williams County Agriculture Hall of Fame is to recognize the outstanding contributions of an individual to the agricultural industry in Williams County. Individuals, spouses, or members of a business may apply for themselves or on behalf of someone else. Applications may also be submitted posthumously.

 

Nominations may be made by any individual or organization in Ohio by completing a nomination form and returning it to Ohio State University Extension – Williams County Office, Attention: Agriculture Hall of Fame Committee, 1425 East High Street, Suite 112, Bryan, OH 43506 or emailed to wyse.34@osu.edu by July 1st of each year or as designated by the Hall of Fame Committee. All nominations must be submitted on a properly prepared form.  Such forms will be printed and available at the Williams County Office or online at https://www.williams.osu.edu. Nominations of an individual, husband/wife, or member of an ag business or farm must be combined and submitted on one nomination form.

 

If you have any questions about the Agriculture Hall of Fame, please call The Ohio State University Extension – Williams County Office at 419-636-5608 or email wyse.34@osu.edu.

2024 Williams County Agriculture Hall of Fame

2023 eFields Booklet Now Available!

The 2023 eFields Book is now available in local Extension Offices. The eFields booklet is a free publication that highlights on-farm research from around the state. The topics in this year’s copy are Corn, Soybean, Small Grain, Forages, Water Quality, Tech, and Other. Each of these sections highlights research conducted during the 2023 growing season. This booklet hosts a lot of exciting information that can assist agriculturists in their management decisions. Stop into the Extension Office to pick up your copy today!

The companion copy of this book for livestock is eBarns. The 2022 copy of this report is available at this link. This publication also covers on-farm research from across the state in the areas of Forages, Dairy, Beef, Small Ruminant, Manure Nutrients, Swine, and Poultry.

Farmer/Farmland Owner Tax Webinar

 

Are you a farmer or farmland owner wanting to learn more about the recent tax law issues? If so, join us for this webinar on Friday, December 15th, 2023 from 10am to noon. This webinar is a part of our Farm Office Live Series and serves as our Farm Office Live! Webinar for December. To register for this webinar go to: https://go.osu.edu/register4fol

This webinar will focus on issues related to farmer and farmland owner income tax returns as well as the latest news on CAUV and property taxes in Ohio and the big changes to the Ohio Commercial Activity Tax (CAT). This two-hour program will be presented in a live webinar format via Zoom by OSU Extension Educators Barry Ward, David Marrison and Jeff Lewis along with Purdue faculty member Dr. Michael Langemeier. Individuals who operate farms, own property, or are involved with renting farmland should participate.

Topics to be discussed during this webinar include (subject to change based on tax law change):

  • Economic Outlook
  • Depreciation Update
  • Employee vs. Independent Contractor
  • Corporate Transparency Act/Beneficial Owners Information Reporting
  • 1099-K Changes
  • Charitable Remainder Trusts
  • Basis Allocation Land Acquisition – Allocating Basis to Residual Fertility for Future Deductions
  • Defining Farm Income to Avoid Paying Estimated Tax
  • Keeping an Eye Forward on Estate/Gift Tax Limitation
  • Reminder – Keeping an Eye on Tax Cuts and Jobs Act Provisions Sunsetting After 2025 Tax Year
  • Ohio Tax Update (CAUV/Property Tax Update, CAT Changes, Beginning Farmer Tax Credit, Ohio Tax Law Interpretation – Ohio Supreme Court Issues New Ruling)
  • Indiana Tax Update

To register: https://go.osu.edu/register4fol

For more information, contact Barry Ward at ward.8@osu.edu or Jeff Lewis at lewis.1459@osu.edu

Williams County Crop Update – October 16, 2023

All information is representative of the Williams County Area. Based on the Bryan Zip Code, over last week and this weekend, the accumulated rainfall hovered around 1.2 inches. Temperatures have not dipped below freezing yet, the average date for the first has passed, so freezing temperatures should be expected at any point.

Corn harvest is just getting started, and not a lot of acres have been harvested yet. The acres that have been harvested have been coming off with high moisture, 18-25%. There has been vomitoxin reported; however, the levels are below concern. Soybeans are around 60% harvested. At the beginning of harvest, the soybeans were coming in dry around 12-13% moisture; however, with the recent rainfall and cloud cover, soybeans are coming in on the wetter side with 15-17% moisture. The current average has hovered around 60 bushels per acre, with the range being 50-70 bushels per acre. Wheat is beginning to be planted and fields are also being tilled as the crops come off the field.

The Ohio Department of Agriculture (ODA) is currently monitoring Box Tree Moth (BTM) (Cydalima perspectalis, family Crambidae). It is currently being found in southwest Ohio. It is the first time this nonnative boxwood defoliator has been found in Ohio. For more information, visit the ODA website or the article published on Buckeye Yard & Garden online (Boxwood Tree Moth Article).

Pesticide Applicator Licensing Information

Who needs a Private Pesticide license?

A Private Pesticide Applicator license is required for individuals who desire to use a RESTRICTED USE pesticide on their crops or plants.  No license is required for the use of GENERAL USE pesticides. All holders of a Private Pesticide Applicator license must carry the CORE category, as well as any other categories that are relevant.

Category 1: Grain and Cereal Crops
Category 2: Forage Crops and Livestock
Category 3: Fruit and Vegetable Crops
Category 4: Nursery and Forest Crops
Category 5: Greenhouse Crops
Category 6: Fumigation
Category 7: Specialty Uses

How do I get a Private Pesticide Applicator license?

1. Review study materials for the CORE category and any other categories you will need

2. Sign up for an exam on the Ohio Department of Agriculture site by selecting the date and location where you would like to test.

3. After you have successfully passed all exams, the ODA will send you an invoice for $30.  If there are exams you did not pass, you may retake the exam.  Only the exams not passed need to be retaken.

4. Once you return the invoice and payment, ODA will send you your Pesticide License

How do I renew my Private Pesticide Applicator license?

Renewals of the Private Pesticide Applicator license must take place every 3 years, prior to expiration on March 31.  To recertify, a total of 3 credit-hours of approved training must be documented, or you will have to retest.  Of this 3 hours, at least 1 hour must be in CORE, and at least 0.5 hours must be in each category that is on your license.  The balance of the 3 hours can be in any category.

3 hours = 1 hour CORE + 0.5 hours (each category) + [remaining hours in any category]

A list of trainings around Ohio can be found here.

How can I check the status of my obtained recertification credits?

The ODA will send a renewal notice several months before your license is set to expire.  This notice will include a record of any accumulated credits since your last license renewal.  You can also get information about accumulated credits by using the ODA webpage and clicking “Recert Information” on the left side.  You will need your License ID and last name.  You can also call the ODA at 614-728-6987.

Who needs a Commercial Pesticide Applicator license?

A Commercial Pesticide Applicator license is required for use of any pesticide (both GENERAL USE and RESTRICTED USE) in the following settings:

  • Custom agriculture applicator
  • Lawncare of landscape company
  • Highway/utility/railroad maintenance
  • Township/city/village owned areas (including parks)
  • Schools/colleges/universities/daycares
  • Apartment complexes (if 4 or more units)
  • Restaurants/food service business
  • Golf courses
  • Hospitals/medical centers

How do I get a Commercial Pesticide Applicator license?

1. Complete the application form and send to ODA with a $35 fee.

2. ODA will send you a set of study materials.  Review these materials and consider attending a New Applicator School.

3. Sign up for an exam on the Ohio Department of Agriculture site by selecting the date and location where you would like to test.

4. After you have successfully passed all exams, the ODA will send you a Commercial Pesticide Applicator license.  If there are exams you did not pass, you may retake the exam.  Only the exams not passed need to be retaken.

How do I renew my Commercial Pesticide Applicator license?

In order to maintain a Commercial Pesticide Applicator license, a $35 fee must be paid annually.

In addition, a Commercial Pesticide Applicator must be re-certified every 3 years, prior to expiration on March 31.  To recertify, a total of 5 credit-hours of approved training must be documented.  Of this 5 hours, at least 1 hour must be in CORE, and at least 0.5 hours must be in each category that is on your license.  The balance of the 5 hours can be in any category.

5 hours = 1 hour CORE + 0.5 hours (each category) + [remaining hours in any category]

Please note that Private Pesticide Re-certification credits do not apply toward the Commercial Pesticide Applicator re-certification requirement.

Information about upcoming recertification opportunities can be found here.

How can I check the status of my obtained recertification credits?

You can find information about accumulated credits by using the ODA webpage.  You will need your License ID and last name.  You can also call the ODA at 614-728-6987.

For additional information about a Pesticide Business license, Pesticide Dealer license, Wood-Destroying Insect Inspection category, or to become a Trained Serviceperson, please visit the Ohio State Pest Ed Department website.

Backgrounding Cattle in 2023

– Garth Ruff, Beef Cattle Field Specialist, OSU Extension (originally published in Farm and Dairy)

Know that not all cattle are

designed to be backgrounded.

With stocker cattle prices near or at record highs, there has never been a better time to evaluate pastures and grazing systems to optimize livestock value in a grazing system. Let’s discuss some management practices for backgrounding stocker calves on the grass in 2023.

Calf Quality

Looking to the future, there is a lot of opportunity in the cattle market for 2023. However, there are concerns about calf prices as producers start to buy stockers to graze this spring and summer.

Not all cattle are designed to be backgrounded. High-growth, high-performing calves are often best suited for delivery straight to the feedlot. The ideal calves for backgrounding are lean, green grazing machines that may not be ready for finishing and will benefit from the added frame and compensatory gain upon arrival to the feedlot in the fall.

In the marketplace, stocker buyers should match their management skills to the type of cattle they can afford and manage. There continues to be a premium for weaned and vaccinated calves and steers compared to bulls. For those producers that back the trailer up to the back 40 and turn cattle out with minimal management for the next six months, buying calves that are of lower risk is often the best bet.

Backgrounding #2 type cattle often has some economic upside in adding value to calves that might not be ready to perform in a feedlot setting. These cattle need more attention and care during the first two to four weeks of ownership to ensure they get on the right path concerning animal health and nutrition. There is a science to putting together groups of these types of calves. Aim for uniformity in flesh, ability, and frame.

Supplemental Nutrition

What about feeding grain in a backgrounding program? If cost-effective and aids in calf management, limiting feeding some grain can be a tool in the toolbox. Remember, every pound added to that animal is as valuable as ever. However, those added pounds should be lean gain rather than added fat cover. When evaluating supplement options, soyhull pellets or by-products could be a consideration.

Animal Health

The best backgrounding programs have some vaccination protocol, a solid mineral program, and a plan for fly control if needed. It is of utmost importance to control and mitigate respiratory disease and pinkeye, given current cattle prices. Work with your veterinarian to develop a Veterinary Client Patient Relationship (VCPR). That relationship is key to minimizing the impact of disease, especially in the wake of over-the-counter antimicrobials going under veterinary oversight in June. It doesn’t take many to fall behind or dead calves to erase the profit potential of a load in a backgrounding system.

Vitamin M[anagement]

Backgrounding stocker cattle can be a profitable enterprise if the impact of various factors can be neutralized or capitalized on. When determining stocking rate, knowing the carrying capacity of each pasture over time can help make cattle buying decisions. Rotational or management-intensive grazing can increase the carrying capacity and productivity of the forage in proper infrastructure is in place. Soil fertility is also part of a successful backgrounding program. Given the current economics of beef production, 2023 is a year to work on being more efficient in our production systems, as every pound of beef produced on a farm is of greater value than in years past. Happy Grazing.

Farm Survey

Farmers, ranchers, and their partners raising children wanted! Researchers are looking for primary caregivers of children under 18 to participate in an online survey about how they are juggling children and work. Full- and part-time farmers and ranchers are welcome to participate and may choose to enter a raffle to win one of fifty $50 checks.

For questions or to request a paper survey, contact Florence Becot at 715-389-9379 or becot.florence@marshfieldresearch.org To fill out the online survey, visit this link: https://redcap.link/Survey1_FarmersRaisingChildren 

H2Ohio

Updates and Reminders from the Soil & Water Conservation District:

If you CURRENTLY have a 2021/2022/2023 H2Ohio Program Contract, the following are Important Details:

  • The following items need to be turned in to the Williams SWCD office by JANUARY 31, 2023, if they apply to you:
    • 2022 Crop Year Paperwork for manure, cover crop practices, and wheat for 2023 needs to be turned in by January 31, 2023
    • Subsurface placement fertilizer bills and fields that are applied to with maps
    • VRT AS Applied Maps if any fall application
    • Manure fields applied to AND As Applied Records for those fields (Manure Tool)
    • Cover crop seed tags, field maps, and date planted
  • VRT & Subsurface Payments have been made for 2022 if the producer has turned in the correct paperwork.
  • If you have not been paid for 2022 VNMP Implementation or other practices like 2022 VRT Phosphorus Application and/or Subsurface Phosphorus Placement, please contact Steve as soon as possible.

Contact Steve Slattman, Williams Soil & Water Conservation District, H2Ohio District Technician, at (419) 636-9395, with your questions.