“The sample size of the custom rates survey historically have been quite small and often not explicit enough to be meaningful to producers wishing to arrive at rates for their own operations,” explains Ted Nibourg, business management specialist at the Alberta Ag-Info Centre.
“Quite often the range quoted in the surveys were extremely broad to the point that they were of little use. Individual factors within producers’ operation also add to the complexity of arriving at a useful rate.”
The use of the machinery cost calculator allows an individual to take into consideration those individual factors and arrive at a base rate specific to their operation.
“That base rate can be adjusted to allow for such items as a good neighbour rate, higher fuel costs, differing labour rates or even a profit margin for full time custom operators,” he adds.
Connect with the Alberta Ag-Info Centre:
Hours: 8 am to 5 pm (open Monday to Friday, closed statutory holidays)
Toll free: 310-FARM (3276)