Tractor rental fees

[LagoVistaFarm]

We have a 40hp tractor/backhoe/loader that we are allowing our 21yo son operate on another farm. He is being paid a wage that he is happy with and he’s learning quite a bit. I need to come up with at reasonable rate for the tractor. I would like to keep it low and friendly but need to make the value something that the young lad can appreciate. Any ideas?

[rambler]

I would look at local rental places, and base it off of their fees. Obviously you will set it lower, but, something to compare to.

I was going to help, but I'm into ag tractors, & you are looking at backhoe/loader work, that's a different ballgame.

Who provides the fuel, oil, & repairs money? And you need to cover depreciation of your machine - tax records might help you out there.

--->Paul

[Rocky Fields]

Hey.

In my area, a tractor equipped like yours is would rent out for about $700 a week, eight hour days. I mention the hours because they don't let you run it unlimited hours during your weekly rental...ie: 56 hours for the week limit or pay more.

The above rental is $100 a day averaged, so charge him $50 a day (half). He should return your tractor in same condition with oil and gas filled to where he got it.

[Runners]

This is WHY I bought a tractor - renting was costing me a fortune!

They'll use 2 different methods, by the "day", "week", "month" and by the engine "hour"

For *just* a 65hp, 2wd, diesel tractor I was paying $85 a weekend - I picked it up and returned it, and paid all the fuel. Add a 3 bottom plow, $15 additional.

Rates for by-the-tractor-hour commonly run $20-30, depending on the age and configuration. If I do work for someone, I'll charge by the tractor hour, not because its a better deal for either of us - it can't be disputed (compared to start / stop times).

Monthly rental rates were well into the $1500+ range, and I was expected to "lease" for 6 months or more - all repairs & maintenance were my responsibility.

After some figgurin'.... I realized I would have a pretty nice tractor paid for around the 280 tractor-hour mark, if I rented, a little longer if I leased. We reached 300 hrs with our new tractor about 2.5 years of use. Adding in all the implements of course to the rental/lease fees...

If he's going to be using a tractor for any length of time, he ought to be encouraged to purchase used implements ASAP, at auctions or where ever.

[LagoVistaFarm]

We are in transition with selling the current farm and moving when that happens. Either the tractor sits or gets used a few hours a day. It’s actually farm work, just hilly California kind of work. They are putting in a few acres of vineyard. He prefers to use the backhoe with rocks and they need to put peeler cores in. I was more thinking of covering the wear and tear. They’re feeding the kid a couple meals a day and that alone has cut our food in half. Hoover can breeze by the refrigerator and suck out $20 worth of food inside of 20 seconds.

What’s you guess on the cost of an engine rebuild on a 40hp Kubota and how many hours might be normal?

[ponyboy123]

charge him what he can afford, no more no less

[michiganfarmer]

my thought is charging 10% of the original cost of the tractor for an 8 hour day

[uncle Will in In.]

A local man done custom backhoe work. Mostly tile repair. He charged $35 per hour for the tractor hours, and $15 per hour for manual labor he would do without running the hoe. He died 2 years ago, and so did his reasonable charges.

[js2743]

the best way to do this is talk to your son and tell him there is up keep to equipment and there needs to be some money put into an account for this. its gonna need oil changes ect. and only out of bad luck will any major repairs be needed. but with the equipment account there would be money to fix it, if something did go wrong. so talk to him and let him have a say in how much is put into the account. just say you know if it breaks down and there isnt enough money in there to fix it then you are out of a job.

[Steve L.]

Originally Posted by michiganfarmer

my thought is charging 10% of the original cost of the tractor for an 8 hour day

So, you're saying that I can buy myself a $16,000 used tractor, and get $200 an hour rental income ($16,000 X .10 = $1600 for an 8 hour day) from it, eh?

Rent her out just 10 times, get all yer money back!!!

Good deal!

Gotta go call my banker.

[majik]

Here in Ontario, a Custom Rates survey is published every 2 years. They're just gathering the data for the new one, but here's a link:

http://www.omafra.gov.on.ca/english/...crs/index.html

[Wags]

Our rental rates around here are through the roof - and they wouldn't let us tow with my F150. Had to pay to have them deliver and pick it up. Would have cost about $200 a day. Figured up the amount of work we needed to have done and ended up buying a new Kabota. We will save money in the long run, and will mostly likely be able to sell it at a decent price if/when we are done with it. My dad has been picking up enough odd jobs with it so far to cover the payments.

[mtman]

Originally Posted by michiganfarmer

my thought is charging 10% of the original cost of the tractor for an 8 hour day

so in 10 days the guy could have bought a tractor does that make sence to you

[mtman]

Originally Posted by Steve L.

So, you're saying that I can buy myself a $16,000 used tractor, and get $200 an hour rental income ($16,000 X .10 = $1600 for an 8 hour day) from it, eh?

Rent her out just 10 times, get all yer money back!!!

Good deal!

Gotta go call my banker.

lol wish i would have read your post before i posted

[SquashNut]

Tried to hire a small bobcat to remove a pile of snow that the county put in my parking area, the guy tole me the rate was $65.00 per hr with min of 1 hr. plus drop fee.
no thanks

bassketcher

[e.alleg]

The going rate here in the east for a backhoe with operator is $45-$60 per hour, snow removal is $90 and up per hour for a bucket loader. There is a guy that digs ponds and plows fields and stuff for $20 an hour with his own machine but I don't think he makes any money.

[Fire-Man]

Originally Posted by Runners

If he's going to be using a tractor for any length of time, he ought to be encouraged to purchase used implements ASAP, at auctions or where ever.

I Agree!! Maybe Lagovista should sell him the tractor being it sounds like the boy is using it the most or allow the boy to buy it from him by making payments each month to Lagovista and have the boy to upkeep Everything on the tractor. If Lagovista needs the tractor----hire the boy at a fair price to do the tractor work for him----or knock some off the payment for each time Lagovista uses it. The Boy will feel better knowing it is his tractor. Call and find out what a average payment on a tractor like that runs each month-----allow the boy to pay close to that---and again the boy upkeeps the tractor.


OR----If the boy and Lago use the tractor about the same amount----let the Boy make 1/2 the payments and pay for 1/2 of all upkeep----Partners!!! But I Don't Want No Partners-------LOL-------Makes Enemies!! Just my Thought. Randy

[swollen tongue]

going rate here for a standard size backhoe tractor and operator is $75. hour. The operator is a professional.

[highlands]

When our tractor broke in half (yes, literally - JD4700 FLBH) we rented an 'equivalent' JD210 for two months(!) at the rate of $2,500 per month everything included. The JD4700 is a far better tractor but the JD210 was better than nothing. The seasons wait for no man. Read the story here.

Cheers,

-Walter
Sugar Mountain Farm
in the mountains of Vermont
http://SugarMtnFarm.com/blog/