Machine work rates for 2012 now available
A new farm machine work rates report is now available for Michigan farmers.
Each year farm operations continue the age-old practice of exchanging machine work between farms which has and will continue be a useful management tool. The Farm Machine Work Rate for 2011 – 2012 summary report has been posted to my web page, Dennis Stein, Michigan State University Extension farm business management educator, to provide Mid-Michigan farms a reference tool in establishing a value for machine work being exchanged between farms. This report is not any one farms real cost, but is a summary of values taken from several sources that have been compiled and published to be a starting point for farms to use in identifying their numbers.
For farms looking back to 2011, you can still find a copy of the Farm Machine Work Rate for 2011; it was posted on my web page in the spring of 2011. The spring 2011 report made some adjustments for the run up in the price of fuel that took place from 2010 to 2011.
As farms work to develop their farm business plan for 2012, it may be helpful to utilize information like this for building cost estimations and comparisons of various farm production systems. When farm crops or tillage programs change, the cost of operations can also change. Having a reference number may be helpful in do a paper evaluation before implementation is undertaken. Changes can often be expensive. A farm may find it more practical in the short term or long term to use the available services that a neighboring farm may be able and willing to provide rather than purchase an expensive piece of equipment.