How do you calculate equipment cost per acre?

How do you calculate equipment cost per acre?

Machinery cost per acre is computed by summing depreciation, interest, property taxes, insurance, building expense, leasing, repairs, fuel and lubricants, and custom hire and rental expense; and dividing the resulting figure by crop acres or harvested acres.

What are the two categories of farm machinery cost?

Farm machinery costs can be divided into two categories: annual ownership costs, which occur regardless of machine use, and operating costs, which vary directly with the amount of machine use.

Is mechanization profitable for farmers who own small amounts of land?

Many studies show that farm mechanization can play a crucial role in minimizing farm drudgery, decreasing the cost of production, and increasing profitability [1,3] and some studies have demonstrated an increased level of farm mechanization in the smallholder systems through service provision models [11,12,16,[23], [24 …

Why is farming equipment so expensive?

To keep up with the growing demand for rigs, manufacturers have priced the machines exorbitantly. By doing so, they have made the equipment only affordable to a few people. And it doesn’t end there. Versatility has also contributed significantly to the high cost of new farm machines.

How much does it cost to run a tractor per hour?

Due to the fuel price increase, fuel costs for the 310 horsepower tractor increased from $33.60 per hour in 2017 to $37.30 per hour in 2019 (see Table 1). Labor costs per hour were increased from $19.80 per hour in 2017 to $20.90 per hour in 2019 (see Table 1).

Why is so much more fertilizer needed on farms today?

Soils naturally contain many nutrients like nitrogen, phosphorous, calcium, and potassium. This maintains the soil fertility, so the farmer can continue to grow nutritious crops and healthy crops. Farmers turn to fertilizers because these substances contain plant nutrients such as nitrogen, phosphorus, and potassium.

What are the disadvantages of farm mechanization?

DISADVANTAGES OF FARM MECHANIZATION

• HIGH COST OF RUNNING: farm mechanization, due to the high cost and numerous machines involved, is very expensive to operate.
• DISPLACEMENT OF WORKERS : in farm mechanization, very few workers are required.
• COMPACTION OF SOIL:
• mechanization CAUSES ENVIRONMENTAL POLLUTION.

What is the most expensive piece of farm equipment?

Here are six of the most expensive farm machines on display at the ploughing.

• Fendt 1050 Vario. Fendt 1050 Vario.
• New Holland CX8. 70 Combine.
• Massey Ferguson 8737 Dyna VT. The black Massey Ferguson 8737.
• Claas Tucano 430 Combine. Claas Tucano 430 combine.
• Case Optum 300. The Case IH Optum 300 CVX.
• JCB Fastrac 4220.