Custom Farming Rate Calculator
Set a fair, profitable price when you do field work for neighbors. The tool combines hourly equipment and labor cost, field capacity, target profit and fuel surcharge into a recommended $/acre rate.
Results
How to Use This Calculator
Estimate your equipment's fully-loaded hourly cost (ownership + operating), the labor cost per hour, the real acres you can cover per hour accounting for turns and overlaps, your target profit margin, and any fuel surcharge. Click Calculate.
About This Tool
About
Applicability: Useful for farm financial planning in North American and European agricultural operations.
How the Calculation Works
Cost/acre = (Equipment $/hr + Labor $/hr) ÷ Field Capacity. Price = Cost × (1 + margin%) + fuel surcharge. For $85/hr equipment, $25/hr labor, 8 acres/hr, 20% margin, $5 surcharge: cost = $110/8 = $13.75/acre; price = $13.75×1.2 + $5 = $21.50/acre. Compare to your state's custom-rate survey. Common mistakes: forgetting downtime (field capacity is 70-85% of theoretical), under-pricing fuel spikes, and not charging for travel between fields.
Reviewed by Agricalc Editorial Team — Agricultural engineers and agronomists with 10+ years of field experience. Our team verifies every calculator formula against peer-reviewed extension publications. For site-specific advice, consult your local agronomist.
References
- USDA ERS — Custom Rate Surveys
- Farm Financial Standards Council
- Iowa State University Extension — Custom Rates
Frequently Asked Questions
What is the going custom rate per acre?
State extension services publish annual custom-rate surveys. As a rough guide, tillage often runs $20-40/acre, planting $15-30, spraying $8-18, and combining $30-60. These vary widely by region, fuel price and equipment age.
Should I charge travel time between fields?
Yes, or fold it into the rate. Drive time burns fuel and maintenance without producing acres. Either charge a separate travel fee or apply a distance adjustment so remote fields carry their true cost.
How do I account for equipment downtime?
Use an effective field capacity of 70-85% of the theoretical (max speed × width), not 100%. Turns, overlaps, refueling and breakdowns eat the rest. Underestimating downtime is the most common reason custom rates lose money.
How does fuel price affect my rate?
Add a fuel surcharge that moves with diesel, or reset the rate each season when diesel spikes. A fixed rate signed before a fuel spike can wipe out your margin. Many operators add a $/acre surcharge tied to a diesel price index.
How much profit should I target on custom work?
20-30% margin above fully-loaded cost is typical for custom work, because you carry the equipment risk and must invest in newer machinery. Price too low and you substitute your equipment's depreciation for a wage; price too high and you lose customers.
