Texas Custom Rates Climb as Machinery Costs Rise

Tractor rental and application services saw the largest increases, with tillage, planting, harvesting, and spraying costs all rising sharply.

LUBBOCK, TEXAS (RFD NEWS) — Texas producers are paying substantially more for custom fieldwork, adding another layer of pressure to already narrow farm margins. Texas A&M AgriLife Extension economist Andrew Wright says row-crop custom rates increased roughly 30 to 39 percent since 2020.

The 2026 Texas Custom Rate Survey (PDF Version) reflects responses from 391 producers, operators, managers, and Extension personnel. The largest increases were in tractor rental and application services, with tillage, planting, harvesting, and spraying costs all rising sharply.

Most reported rates include machinery, fuel, and operator labor. Higher equipment prices, elevated interest rates, and more expensive fuel have therefore pushed service charges higher across a wide range of farm operations.

Texas rates were generally similar to those reported across other Southern states, although survey timing and methods differ. The increases also tracked broader gains in producer prices and farm machinery manufacturing costs.

Despite higher custom rates, hiring work may still cost less than financing machinery for limited annual use. Producers should compare ownership, repair, labor, and interest costs before purchasing equipment.

Farm-Level Takeaway: Higher custom rates increase operating costs, but outsourcing may still be cheaper than owning underused machinery.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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