Estimating Machinery Rental Rate From Custom Rates Worksheet

Estimating Machinery Rental Rate from Custom Rates*

Example: Field Cultivator

1. Custom charge (includes labor, fuel, tractor)

$________/acre

$11.10

2. Percent of custom charge which is for interest, insurance

_________%

70% depreciation, and repairs (exclud

ing fuel and

labor)

(use 70% for tillage. 80% for planting and harvesting)

3. Rental value, including tractor (1 x 2)$________/acre

$7.77

4. Tractor rental value if tractor is not provided:

_____ HP x $ ______ per hp-hour rental rat

(see above)/ _____ acres/hour = $________/acre

$ 2.13

Ex: 260 HP x .27 (per hp-hour rental rate)/33 acres/hr = $2.13

5. Implement rental value without tractor (3 minus 4)

$________/acre

$ 5.64

*Source: 2010 Iowa Farm Custom Rate Survey

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