Custom Farm Services in the United States, Status and Potential

Changes in farm size over the past four decades have been closely associated with changes in machinery size. But an expanding range of farm sizes, existence of important economies of scale in machine manufacture, and increasing per farm and per machine financial requirements create pressures to alter this relationship. Full ownership and use of machines on each farm could give way to expanded use of custom services. Data from recent censuses of agriculture and other secondary sources are summarized. They show that custom services are a significant item, but are minor in comparison to services provided by owned machines. Both other farmers and nonfarm custom operators are important providers of farm machinery custom services. Such services are most used in the North Central and Southern regions, and in cash grain and livestock farms. All sizes of farm both use and provide custom services, but economic class I farms have the largest amounts of both. A number of forces which may lead to expansion in custom operations are discussed. Potential supplies of custom machine services from three sources are noted: (1) farmer custom operators, (2) custom operators not engaged in farming who provide either use of individual machines or complete farming operations, and (3) machinery dealers or others who provide short-term rentals.