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Machinery economics

FEFO Archive: Machinery economics

Machinery Cost Estimates for 2006
Gary Schnitkey, Dale Lattz
FEFO 06-16, 09/20/2006
 

Abstract

Estimated per acre machinery costs are estimated to be 11 to 44% higher in 2006 as compared to 2005.
 
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Costs and Fuel Use for Alternative Tillage Systems
Gary Schnitkey, Dale Lattz
FEFO 06-07, 04/19/2006
 

Abstract

Costs are examined for two systems that have little tillage and two systems that rely on tillage. The two “low” tillage systems have about $9.50 per acre less costs and between 1 and 2 gallons less fuel use than the two “tillage” systems.
 
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Effect of Higher Fuel Prices on Machinery Costs
Dale Lattz, Gary Schnitkey
FEFO 05-17, 09/26/2005
 

Abstract

The price of diesel fuel has increased substantially during the past year with no indication that fuel prices will decline in the near future. This has resulted in increased machinery costs for farmers. The question arises as to how much machinery costs per acre have increased due to the higher fuel costs. This is especially important to those farmers involved in custom farming arrangements. The increase in machinery costs per acre due to the higher fuel prices depends on a number of factors, including the size of equipment, efficiency and type of machinery operation. Fuel costs per acre are estimated for selected machinery operations typically performed in the fall given different prices per gallon for diesel fuel.
 
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Machinery Cost Estimates in 2005
Gary Schnitkey, Dale Lattz
FEFO 05-08, 04/19/2005
 

Abstract

Periodically, personnel within the Department of Agricultural and Consumer Economics estimate the costs of completing field, forage, and harvesting operations on Illinois farms. Per hour costs of operating tractors also are available. Estimates were updated in April 2005 and are available in the management section of farmdoc (http://www.farmdoc.uiuc.edu/manage/machinebuilding_index.html).
 
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Per Acre Machinery Costs And Values On Illinois Farms, 2003
Gary Schnitkey
FEFO 04-11, 07/28/2004
 

Abstract

Summaries of Illinois Farm Business Farm Management (FBFM) records indicate that power costs on Illinois grain farms average $59.39 per tillable acre in 2003. Power costs are composed of utilities ($4.85), repairs ($15.73), machine hire and leases ($8.53), fuel and oil ($9.65), light vehicle ($2.19) and depreciation ($18.44).
 
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Skip-Row Planter Costs
Gary Schnitkey
FEFO 04-06, 03/31/2004
 

Abstract

Skip-row planters, which allow corn to be planted in 30-inch rows and soybeans to be planted in 15-inch rows, have become relatively popular in Illinois within the last several years. In this article, additional costs associated with skip-row planters are examined. Specifically, additional costs associated with skip-row planters are stated on a per acre basis for each acre planted to soybeans. Costs are examined for 12-row and 16-row planters on farm sizes ranging from 1,000 acres up to 1,800 acres. Results indicate that skip-row planters add between $3.62 and $7.90 per acre for each acre of soybeans planted.
 
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Planter Costs For Alternative Farm Sizes
Gary Schnitkey
FEFO 04-05, 03/31/2004
 

Abstract

This article reports on a study of planter costs for different farm sizes. Our objective was to determine the planter size that had the lowest cost for a given farm size. Farm sizes from 400 to 4,000 acres in 400 acre increments were evaluated. Planter sizes ranged from 6-rows up to 36-rows. Planters were assumed to plant all acres with acres evenly split between corn and soybeans.
 
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New Machinery Cost Estimates and Planting Costs
Gary Schnitkey
FEFO 03-11, 06/27/2003
 

Abstract

New machinery cost estimates were released on farmdoc in June 2003. These cost estimates are calculated using an economic-engineering approach based on buying new equipment and holding all machines, except combines, for ten years (combines are held for seven years). Estimates for tractor, field, planting, forage, and combining operations are in the management section of farmdoc (click here). In addition, online Machinery Costs Tools are available that allow users to change input so that costs more closely reflect operations on a particular farm.
 
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Increases in Fuel Related Costs Lead to Higher Production Costs
Gary Schnitkey
FEFO 03-05, 03/19/2003
 

Abstract

Fuel prices have increased substantially primarily due to concerns over supply disruptions that may occur in the Middle East. These price increases have lead to higher projected production costs for corn and soybeans in 2003. This paper discusses increases in fuel, nitrogen, and drying costs that may occur.
 
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New Spreadsheet Tool for Machinery Economics
Dale Lattz
FEFO 01-25, 12/17/2001
 

Abstract

A new Microsoft Excel spreadsheet has been developed to provide economic information on machinery issues commonly faced by farmers. The spreadsheet will 1) calculate the probabilities of being able to complete machinery operations between beginning and ending dates, 2) calculate the costs of tillage and planting operations, and 3) calculate the cost of combining. The spreadsheet is named Machinery Economics and is part of the FAST decision aids available for download at farmdoc (see http://www.farmdoc.uiuc.edu/finance/business.html).
 
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Benchmark Machinery Values on Grain Farms
Gary Schnitkey
FEFO 01-22, 11/12/2001
 

Abstract

Machinery costs represent a significant proportion of total costs on grain farms. Machinery depreciation, machinery repairs, fuel, machinery hire and leasing, utilities, and light vehicle expense account for an average of 16 percent of the total economic costs on grain farms enrolled in the Illinois Farm Business Farm Management (FBFM) Association. There also is considerable variability in machinery costs across farms, with more profitable farms tending to have lower per acre machinery costs (see Illinois Farm Economics: Facts and Opinions. "Do Some Farms Consistently Have Higher Profits than Other Farms?" FEFO 01-15, July 20, 2001).
 
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Per Acre Machinery Costs on Illinois Grain Farms
Gary Schnitkey
FEFO 01-09, 04/17/2001
 

Abstract

Summaries of Illinois Farm Business Farm Management (FBFM) records indicate that machinery costs on central Illinois grain farms having high-productivity farmland averaged $58.41 per acre in 2001. These costs are composed of machinery repairs ($13.97 per acre), machine hire and leasing ($7.25), fuel and oil ($8.95), light vehicle ($1.57), and machinery depreciation ($26.67). Machinery costs in northern Illinois are higher, averaging $71 per acre. Machinery costs in southern Illinois average $62 per acre, slightly higher than costs in central Illinois.
 
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