Farmdoc Search Subscribe About Contact Us friends of farmdoc
Home
Finance
Marketing & Outlook
Management
Law & Taxation
Policy
FASTtools
Crop Insurance
Presentations
Prices & Weather
Web Resources
Visit farmdoc daily

farmdoc Sponsors


farmdoc Sponsors

farmdoc Sponsors


Machinery & Building Costs

 

 

 

Print Full Text (PDF format)

The following table shows per hour costs for different sized tractors. Total per hour costs are divided into overhead (depreciation, interest, insurance, housing, and repair costs), fuel, and labor costs. An allowance for profit is not included in profit. Adding 5 to 15 percent to estimated costs may be appropriate when setting custom or rental rates.

Tractor Cost Calculation Tool                                     Credits

.

 Tractors 1

Costs

Total2 = Overhead3 + Fuel4 +  Labor5  Detail &Calc
  $ per hour
65 PTO Hp Tractor33.5514.004.7014.85
95 PTO Hp Tractor41.5520.206.5014.85
105 PTO Hp Tractor44.1521.707.6014.85
115 PTO Hp Tractor46.8523.708.3014.85
           
140 PTO Hp Tractor55.2530.3010.1014.85
155 PTO Hp Tractor58.5532.5011.2014.85
170 PTO Hp Tractor68.1541.4011.9014.85
190 PTO Hp Tractor72.5544.0013.7014.85
           
215 PTO Hp Tractor, FWA78.9548.6015.5014.85
235 PTO Hp Tractor, FWA84.6552.8017.0014.85
255 PTO Hp Tractor, FWA90.1556.9018.4014.85
280 PTO Hp Tractor, 4WD82.0547.0020.2014.85
325 PTO Hp Tractor, 4WD91.5553.5023.2014.85
 
1 "FWA" indicates a front wheel assist tractor. "4WD" indicates a four wheel drive tractor.
 
2 Sum of overhead, fuel, and labor costs.
 
3 Includes depreciation, interest, insurance, housing, and repair costs. These per hour
   charges are appropriate for calculating rental costs when the person renting the tractor    provides fuel and labor.
 
4 Fuel costs are based on a price of $1.10 per gallon for diesel fuel. Fuel costs
   vary depending on fuel use. Use varies with load on the tractor.
 
5 Labor costs are based on a $13.50 per hour labor charge. Labor time is assumed to be
   ten percent higher than tractor hours.
 
Formulas developed by the American Society of Agricultural Engineers (ASAE) are used in calculating costs. All costs are based on buying a new tractor, owning the tractor for 10 years, and using the tractor 300 hours per year. More detail on how costs are calculated are given in the pdf version of the publication (Machinery Cost Estimates: Tractors, FBM 0204).
 

Use and costs

The majority of overhead costs are in depreciation and interest. On an annual basis, depreciation and interest are relatively constant no matter the hours of use. As hours increase, yearly depreciation and interest costs are spread over more hours. Overhead costs are double those shown above when use is 150 hours rather than 300 hours. Overhead costs are 0.66 times those shown above when use if 450 hours rather than 300 hours. The range points out the need to fully use tractors in order to lower per hour overhead costs.


  

Department of Agricultural and Consumer Economics    College of Agricultural, Consumer and Environmental Sciences
Home | Finance | Marketing & Outlook | Management | Law & Taxation
Policy | FAST Tools | AgMAS | Crop Insurance | Prices & Weather | Ag Links
Search | Subscribe | About farmdoc | Contact Us | friends of farmdoc
E-mail: farmdoc@illinois.edu
University of Illinois