How to Estimate Custom Machinery Rates

Specialization in agriculture, along with larger farm sizes and bigger equipment, has resulted in more custom machinery work being conducted on farms. Often, there is limited data about the current custom rate. The Mississippi State Budget Generator (MSBG) is a tool that uses a cost approach to allocating machinery cost on a per acre basis and can be used in situations where custom rates are not well known. When compared to actual custom work surveys, the MSBG provides rates that are lower than the survey results. One explanation is that the MSBG does not include any built-in profit.