Custom Hiring Equipment

Custom hiring means paying someone with the right machine and skill to do a job for you. For many small farms it is the sensible way to get big-machine work done without owning the machine.

Key points

Hire out big, seasonal jobs that need machines you would rarely use.
Check references and ask for proof of insurance.
Write down the work, rate, timing and who pays for materials.
Mark hazards and call 811 before deep work.

What does custom hiring mean on a farm?

A custom operator owns equipment and does fieldwork for other people for a fee. Typical jobs include baling hay, planting, tillage, spreading, harvesting, hauling and land preparation. You supply the ground and the instructions, and the operator supplies the machine, the fuel and the labor.

Rates and terms are set between the two parties and vary by region and job. Your extension office may publish survey information on typical custom rates, and local farmers are another good source of guidance.

For a cattle ranch the same idea applies to hauling and feed work, and for an orchard it may mean mowing between rows or spreading compost. The details change, but the structure of the deal stays the same.

When does hiring an operator beat owning the machine?

Hiring wins when the job is large, seasonal and needs a machine you would use a few days a year. A 30-acre hay field might need a baler and a rake that cost far more than the value of one season of cutting. Hiring it out turns a big fixed cost into a cost you pay only when you need the work.

It also wins when you lack the skill or the time. A good operator can do in a day what takes an amateur a week.

How do you find a reliable custom operator?

Start with word of mouth. Ask neighbors, the local feed store, the extension office and the dealer's parts counter who does good work. Then look at jobs they have done, and talk to the owners of those fields.

Ask direct questions about their experience, their equipment condition and how they handle bad weather delays.

How long have you done this kind of work?
What equipment will you use, and is it in good working order?
Can I speak with two or three recent customers?
How do you schedule jobs and handle rain delays?
What do you need from me before you arrive?
Do you carry insurance, and can you show proof?

What should a custom hire agreement cover?

Put the job in writing. A short document protects both sides and avoids the arguments that come from loose memory.

Describe the work in plain terms, and agree on what happens if conditions change.

Agree in advance on how to measure the work. Acres can be argued over, so decide whether the number comes from a farm service record, a map or a measured pass with a GPS device.

Fields and acreage involved, with a simple map if possible
The work to be done and the standard expected
Rate and how it is calculated, per acre, per hour or per unit
Timing, and what happens if weather delays the work
Who supplies fuel, seed, twine, wrap or other materials
Payment terms and when payment is due
Insurance and who is responsible for damage

Who is responsible if something goes wrong?

Responsibility depends on the agreement, your policies and your state. Ask the operator to show proof of liability insurance. Ask your own insurance agent how a hired operator on your land is treated under your policy.

Tell the operator about hazards you know about: buried irrigation lines, soft ground, rocks, stumps, gates and overhead power lines. Mark them clearly before the work begins.

How do you prepare your fields for a custom operator?

Preparation prevents breakdowns and delays. Walk the field and remove debris, wire, rocks and fallen branches that can damage a machine. Make sure gates are wide enough and in working order. Note wet spots and slopes so the operator can plan around them.

If underground utilities may be present, call 811 before any digging or deep work. Share what you know about the ground, so the operator can work safely.

How do you judge the quality of the finished work?

Be in the field or visit it soon afterward. Check the result against what you agreed. For a hayfield, that might mean looking at how evenly it was cut and raked. For tillage, how evenly the ground was worked.

If something is wrong, raise it promptly and politely, with the agreement in hand. A good operator wants a repeat customer and will usually fix a real problem. Keep the relationship good, because you will want that person's time next season.

Pay on time. A custom operator with a full season of jobs picks the customers who pay promptly and treat the crew well.

When to get help: Ask your insurance agent how a hired operator on your property is covered, and consider an attorney for a large or long-term agreement. Your extension office may have information on typical custom rates in your area.

Sources and further reading

Organization homepages are linked so you can search them for current guidance on this topic.

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