Shannon Dill, Principal Agriculture Agent
University of Maryland Extension
Elizabeth Thilmany, Faculty Specialist
University of Maryland, Agriculture Law Education Initiative
The University of Maryland Extension has updated www.go.umd.edu/grainmarketing site with custom rates, field crop budgets, and a new online tool for grain marketing analysis.
Custom Rates
A mail and online survey conducted in the Fall of 2024 gathered custom work charge data from 61 operators and farmers across Maryland and Delaware. Custom rates refer to the fees charged for various agricultural field operations performed and often include services such as planting, tillage, harvesting, spraying, and manure application. These rates provide a valuable resource for determining fair pricing when other benchmarks are unavailable.
The report summarizes the range, average, and median rates for custom services, offering insights into cost trends. Comparisons with past surveys from 2023, 2021, 2019, and 2017 highlight rate changes over time.
Variations in charges stem from factors such as location, field conditions, equipment type, and service timeliness. Some rates have been excluded due to insufficient responses.
Overall farm production costs are expected to rise 5% in 2025 compared to 2023. The most significant rise is in field preparation, which is expected to jump 16%.
Key Cost Increases:
- Field Preparation: Projected to rise 16%, from $20 to $24.
- Planting Costs: Estimated to grow 14%, reaching $25
- Grass and Hay Production: Expected to increase by 15%, from $15 to $18
- Labor Costs: Rising 11%, from $42 to $47
- Field Applications: Experiencing a modest 8% increase, from $14 to $15
- Harvesting: Expected to increase from $73 in 2023 to $86 in 2025 (15%)
- Equipment Costs Decline: The only area expected to see a cost reduction is equipment expenses, which are reported to drop by 19%, from $85 to $71.
Crop Budgets
Cost of production is very important when making decisions related to your farm enterprise and grain marketing. Surveys from 2024 UME Winter Crop Production meetings report 66% of farmers believe input costs are the greatest challenges facing their farm operation. Enterprise budgets provide valuable information regarding individual enterprises on the farm. This tool enables farm managers to make decisions regarding enterprises and plan for the coming production year. An enterprise budget uses farm revenue, variable cost, fixed cost, and net income to provide a clear picture of the financial health of each farm enterprise.
The 2025 Maryland enterprise budgets were developed using average yields and estimated input costs based on producer and farm supplier data. Fertilizer prices, pesticide availability, and fuel expenses have fluctuated greatly. The figures presented are averages and vary greatly from one farm and region to the other. It is, therefore, crucial to input actual farm data when completing enterprise budgets for your farm.
The latest cost per acre comparison from 2024 and 2025 reveals shifts in input costs and market conditions affecting farmers. Overall, there is a slight decrease in costs from 2024. The cost of production per acre for Corn – No Till is projected to decrease from $690 in 2024 to $655 in 2025, marking a 5% decline. Similarly, Corn – Conventional is expected to see a 2% decrease, dropping from $749 to $731 per acre. Conversely, Soybeans are expected to experience a 5% cost increase, rising from $410 per acre in 2024 to $431 in 2025. The most significant decrease is seen in Wheat, where costs are projected to decline by 6%, from $514 per acre in 2024 to $481 in 2025.
How to Use University Enterprise Budgets:
The enterprise budgets can be used as a baseline for your operation, and you can modify these budgets to include your production techniques, inputs, and overall management. The budgets are available electronically in PDF, Excel, and now as an interactive website at go.umd.edu/efmd. Use this document as a start or reference to create your crop budgets. Contact information is on the website if you have problems downloading any information.
Cost per acre for selected crops
New Grain Marketing Tool
To assist farmers in making crop enterprise decisions, UMD has introduced the Maryland Grain Budget Planner, a new online tool that integrates crop budget data with grain marketing analysis. This free resource, funded by the Northeast Extension Risk Management Education Center, helps farmers track market trends, project expenses, and benchmark financial performance. By using this tool, producers can make more informed decisions about the cost of production, marketing strategies, and overall farm profitability. The tool includes a Market Analysis tab, which provides historical pricing data and cost trends. Below is an example of estimated crop income per bushel from the Market Analysis tab:
This tool can be accessed at go.umd.edu/EFMD.
