BankWise January 10, 2019
Yesterday was the first full day of the 91st legislative session. Minnesota is the only state with a split legislature – Democrats control the House and Republicans control the Senate. The house also has 39 new or freshman members (two have served before).
While we’re still more than a month away from the release of the Iowa Farm Custom Rate Survey, the widely-accepted source farmers use to set their custom rates, the time for figuring rates for work done in 2018 is upon us. Looking at past rates for custom farming practices, the trend shows rates have held steady or declined only slightly, even though fuel costs have ticked higher.
Refer to the 2018 Custom Rate Survey for a refresher on suggested fees for specific services. The University of Minnesota, meanwhile, offers good resources on the cost of operating farm machinery for those in need of figuring the hard costs that factor into setting custom rates.
Also, due to low commodity prices this year, a good deal of grain is being stored on the farm. A friendly reminder to farmers about the importance of checking on-farm storage to ensure bin temperatures remain stable might be well-advised. Grain spoilage is no way to end (or start) the year.