Farm Management. Chapter 22 Machinery Management. Chapter Outline. Estimating Machinery Costs Examples of Machinery Cost Calculations Factors in Machinery Selection Alternatives for Acquiring Machinery Improving Machinery Efficiency. Chapter Objectives.
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Fuel and lubrication
Custom hire or rental
Other operating costsEstimating Machinery Costs
Capital recovery =
[amortization factor x (beginning value – salvage value)]
(interest rate x salvage value)
Source: ASAE Standards, 2001
Source: Hunt, Donnell; see text
Field capacity =
speed (mph) x width (feet) x field efficiency (%)
Minimum field capacity =
acres to cover
hours per day x days available
Field days needed =
acres to cover
hours per day x acres completed per hour
Some field operations do not have to
be completed within a fixed time period,
but the later they are performed, the
lower the harvested yield is likely to be.
Source; Kentucky Farm Business Management Program, 2003 Annual Summary
Annual machinery costs are a large
part of a farm’s total costs. Selection
of optimum machinery size should
consider total costs and the effects on
timeliness. Machinery efficiency can
be improved by proper repairs and
maintenance, by owning equipment
jointly, or by exchanging the use of
individually owned machines.