With increasing fuel and machinery costs, average custom rates for farm work have risen for 2026. The annual Iowa Farm Custom Rate Survey report shows increases across all categories of operations surveyed.
The range is from 0.3% for grain bin and machinery rental rates to 8.5% for preharvest operations such as tillage, spraying, fertilizer application and planting. The survey was conducted statewide in February by Iowa State University Extension and Outreach. Results were analyzed and released in mid-March.
Many Iowa farmers hire some custom work for their farming operations. Others rent machinery or do custom work for neighbors. Whether you hire someone to do custom work or provide such services, you can review the survey results and compare your rates with those paid across the state.
The survey has provided guidance for Iowans about custom work for over 50 years.
Helpful information
A summary of the 2026 survey was published in the March edition of ISU’s Ag Decision Maker digital newsletter. The report is based on 205 responses and 4,698 custom rates provided by Iowa farmers, custom operators and farm managers. About 32% of respondents reported that they perform custom work, 20% said they hire for work, 47% indicated doing both, and 2% didn’t indicate whether they perform or hire custom work.
Farm tasks listed in the report include everything from field preparation to planting and harvest, with custom rate cost data that reflects the average and range for each task. Rental rates for select machinery, grain bins and hourly machinery operating wages also are included. New operations surveyed in 2026 include drone spraying and sidedressing anhydrous ammonia.
Rates in the report are the amounts expected to be charged or paid in 2026, and include fuel and labor unless otherwise noted.
Ann Johanns, ISU Extension program specialist and editor of Ag Decision Maker, said the annual report is a valuable resource for custom operators and those who hire custom work.
“Our survey report is heavily used by Iowans and others across the Midwest, as the 116,000 downloads in the past year show,” she noted.
The survey is intended to serve as a guide. Actual custom rates may vary according to the availability of machinery in a given area, timeliness, operator skill, field size and shape, crop conditions, and the performance characteristics of the machine being used.
Fuel costs rise
Diesel fuel was estimated at $2.89 per gallon when invitations to complete the survey were sent to participants in early February. However, fuel prices have increased since then, as reported by the biweekly USDA Ag Marketing Service Iowa Production Cost Report. It showed No. 2 diesel fuel prices rose from an average of $2.59 per gallon in January to $3.12 in mid-March.
“This isn’t the first time fuel has seen increases between the survey starting and results being published,” Johanns said. “We’ve updated some related publications on fuel use and estimating machinery costs.”
A 50-cent-per-gallon increase in fuel prices will raise total machinery costs about 5%, Johanns added.
Another way to adjust custom rates is to use ISU’s Fuel Required for Field Operations publication, which is available online. It has estimated fuel consumption values per acre for many common operations.
Multiplying the fuel used per acre by the change in fuel price since the survey was conducted can provide an estimate of the most recent cost increase per acre.
Estimate machinery costs
Custom work rates should account for all ownership and operating costs associated with the equipment being used. Custom operators and those who hire for custom work are encouraged to use additional resources, such as ISU’s Estimating Farm Machinery Costs publication, for specific operations.
New web-based calculators and downloadable decision tools are included in this recently updated guide to allow users to enter their own estimates and calculate machinery and implement costs.
A price comparison series for fuel, fertilizer and crop prices is updated regularly on the Ag Decision Maker website.
If operators don’t have a good handle on their individual costs to own and operate specific machinery, there are helpful resources on the Ag Decision Maker website. They are listed in the Custom Operations and Machinery Management categories.
In addition to the “usual” operations, the 2026 Iowa Farm Custom Rate Survey report has results for bulldozing, applying manure, crop scouting, rock picking, subsoiling, strip tilling and more. Historical custom rate data is summarized in Ag Decision Maker File A3-12, and past publications of the Iowa Farm Custom Rate Survey to the year 2000 also are available online.
“Ultimately, the Iowa custom rate survey is a starting point in discussions, but any custom rate charged or paid should cover the operator’s cost of owning and operating the machinery being used,” Johanns said. “Just using the results of the survey alone might not be the right answer for your individual operation.”
How to join the 2027 survey
Information available in the Iowa Farm Custom Rate Survey is only possible thanks to the responses provided each year. If you are interested in joining the 2027 survey, send your mailing or email address to Ann Johanns, ISU Borlaug Learning Center, 3327 290th St., Nashua, IA 50638, or contact her at 515-337-2766 or aholste@iastate.edu.
“We encourage farmers who do custom work, and farmers who hire custom work for their farming operation, to please participate in our survey,” Johanns said. “We appreciate your help.”