Calculating Field Operation Costs with ABC and Setting Harvest Rates

Farmer harvesting field
USDA (Flickr/Public Domain)

Calculating Field Operation Costs with ABC and Setting Harvest Rates

There are many different arrangements across Nebraska as harvest field operations are performed. Many farmers and absentee landowners hire custom operators to harvest their crops for them. The University of Nebraska’s Custom Rates publication1 is a widely utilized report that provides market rate information on various custom services provided across the state. Market rate information, coupled with actual machine operation, costs should be factored into custom rate pricing. Farmers utilizing their own equipment for harvest should know their field operation costs and factor those into their cost of production.     

In this article, Nebraska Extension Educator and Farm and Ranch Management Analyst Glennis McClure reviews the rates reported in the 2020 biennial custom rates report and how to utilize the UNL Department of Agricultural Economics’ new Ag Budget Calculator program.  

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