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  Machinery & Building Costs

 

 

 

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The following table shows estimates of per acre costs of performing forage operations.

Forage Operations

Operation Total Tractor
= Overhead
Implement
+Overhead
Fuel
+ & Lube
+ Labor
.
$ per acre
Cutting, conditioning and raking hay
    Sickle Bar Mower10.203.602.400.903.30
    Rotary Mower8.702.603.100.602.40
    Pull-type Mower/Cond13.003.604.601.503.30
    Self-propelled Mower/Cond13.60 -- 10.801.301.50
    Rake (Side Delivery)6.001.502.700.401.40
    Rake (Wheeled)3.401.100.900.301.10
    Tedder4.601.601.100.401.50
Bailing hay
    Small Square Baler16.604.905.202.004.50
    1,000 lb. Square Baler14.003.207.801.301.70
    Round Baler16.404.505.801.904.20
Forage harvesting as silage
  Pull-type forage harvester
    First cut hay12.805.303.302.102.10
    Remaining cuts8.703.602.301.401.40
    Corn Silage51.9020.1015.808.207.80
  Self-propelled forage harvester
    First cut hay 13.70 -- 10.502.101.10
    Remaining cuts 9.20 -- 7.001.400.80
    Corn Silage 47.60 -- 39.006.102.50

Total per acre costs are divided into:

  1. Tractor Overhead includes depreciation, interest, insurance, housing, and repair charges on the tractor used to pull the implement.
  2. Implement Overhead includes depreciation, interest, insurance, housing, and repair charges on the implement.
  3. Fuel charges are based on diesel fuel priced at $1.10 per gallon. Lubrication costs is calculated as 10 percent of fuel cost.
  4. Labor costs are based on a $13.50 per hour labor charge. Labor time is 10 percent more than hours required to cover an acre.

Not included in estimated costs is an allowance for profit. Charging custom rates at estimated costs should cover costs, but will not generate a profit above these costs. Adding 5 to 15 percent to estimated costs may be appropriate for determining custom rates.

Formulas developed by the American Society of Agricultural Engineers (ASAE) are used in calculating costs. All costs are based on buying a new machinery and holding the machinery for 10 years. More detail on how costs are calculated are given in the pdf version of the publication (Machinery Cost Estimates: Forage Field Operations, FBM 0202). This document also shows costs on a per bale and per hour basis.

  

Department of Agricultural and Consumer Economics    College of Agricultural, Consumer and Environmental Sciences
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