What is in this article?:
- Custom planting may be good option this year
- Smaller acreage less efficient
• In most cases, yield increases from timely planting during the optimum planting window will offset the custom rate cost.
• Producers having trouble getting planted during the optimum window should consider custom planting, upgrading planters, or maybe adding an additional planter.
Smaller acreage less efficient
The higher cost custom rate should capture more of the custom operators working with less efficient equipment. Another way to look at that range would be smaller acreage custom planted is less efficient to the equipment operator and may necessitate a higher charge to offset the drop in efficiency.
As the acreage increases the efficiency increases and a lower charge may be justified. An operator with updated equipment, skilled person on the planter, and one who does an above average job is worth it.
A no – till planting rate for corn (cotton would be comparable, maybe not quite as much) ranges from $15.00 an acre to $23.00 acre with the average final rate of $17.50 acre.
A planter with attachments for fertilizer or chemical application would be a little higher with a range of $16.50 to $25.00 with the average final rate of $19.50.
Soybeans planted on 15 inch rows, 30 inch rows or drilled, range from $14.50 to $23.50 per acre with an average final rate of $17.50 acre.
A producer just wanting to cover the cost of planting would need at least $12.20 an acre for a cotton planter and $15.50 an acre for a corn/ soybean split row planter(depending on age and size of equipment and whether seed tenders, etc. were used) while the going market rate averages in the $17.50 – $19.50 per acre range.
I would note that the Iowa State guide lists an extra $2.20 per acre charge for seed shut off that automatic section control planters have. They also list an additional $2.45 an acre charge for variable rate seeding.
Some adjustments should be made depending on the efficiency and skill of the operator.
In most cases, yield increases from timely planting during the optimum planting window will offset the custom rate cost.
Closely evaluate your planter and use the information to make adjustments for not only this year, but future years as well.
Producers having trouble getting planted during the optimum window should consider custom planting, upgrading planters, or maybe adding an additional planter.
On the Web:
University of Tennessee Crop Budgets – http://economics.ag.utk.edu/budgets.html.
Kentucky Custom Rate Guide – http://www.ca.uky.edu/cmspubsclass/files/ghalich/CustomMachineryRatesKentucky2013.pdf.
Iowa Custom Rate Guide – http://www.extension.iastate.edu/agdm/crops/pdf/a3-10.pdf.
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