Machinery rental

Question

I farm 750 acres. I have decent machinery for that acreage but nothing new. My son has rented a piece of ground. He will be using my machinery. I would be happy just to let him use it but I don't want his siblings to someday say that he got something that they never got. Besides it is a good learning experience to pay for what you use. I'm not sure how to charge him. I was thinking of a flat rate/hour + fuel on tractor usage which would include whatever is being pulled behind it. Then there is the combine and semi. He can pay it off with labor in the spring and fall. Any thoughts or ideas or something that works for you?

Answer

I charge my kids $/per acre for complete work. Like tillage, planting, spraying, combining

Answer

charge him tractor rent, have him pay for his own fuel and you pay him for his labor. That will keep it clean for you, your son and for his siblings

Answer

Nothing wrong with giving a family discount as long as he's paying something good lesson and pays for wear and tear. If your i a position to help get family started thats a good things now days.  But don't hand it to them on a silver platter. Recipe for failure.  Charge what you feel comfortable with that doesn't  cause him to go broke.

Answer

I work with another farmer. He has the bulk of the machinery. I would do between $50 to $60 acre, your son supplies the fuel. Thats fair for both.

Answer

i farm with my father and have two older siblings not on the operation. I currently farm the majority of the ground and own most of the equipment  but i started in a very similar situation.    my dad Charged custom harvest rate for the acres, let me just put the fuel in for everything else the first year or two in exchange for uncalculated labor.

Answer

I started in a similar situation. 1st year went 75% of Iowa full custom rate or 15% over your cost per.    Problem we ran into was keeping fuel usage straight.  Equipment gas to be filled before and after every time used on his ground.

Answer

Here's a tool we use to help us figure things like this as there's still some equipment I rent from my dad.  We generally have the use of small equipment for the cost of minor repairs and maintainence, but have to pay other comparable rates on tractor hours.
https://www.extension.iastate.edu/agdm/crops/pdf/a3-10.pdf

Answer

I would look at Iowa State custom rates to determine what to charge him.

Answer

If he is helping you farm and if he get"s equipment will you rent from him then? I have kids that farm and dont and I explain to the ones that dont farm life is always equal and it can be fair. You will get free labor from him or do you pay him a wage for time worked .

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Machinery rental

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