Farm Machinery Economic Cost Estimates, the publications offers both time-related and use-related cost figures for over 150 machines.
“Machinery costs are substantial and controlling them is important,” says Bill Lazarus, economist with the University of Minnesota. Lazarus and Roger Selley, University of Nebraska, co-authored the publication.
“Custom charges are often based on these costs. No one should do custom work unless the charge will cover operating costs and use-related depreciation plus as return for one’s risk and time,” Lazarus and Seeley say in the publication.
Farmers incur user-related costs only when a machine is used. Those costs include fuel, lubrication, use-related repairs and labor. Time-related costs, also often referred to as overhead costs, accrue to the owner whether or not a machine is used. Overhead includes the time-related economic costs of interest, insurance, personal property taxes and housing.
To find the publication, visit http://www.apec.umn.edu/faculty/wlazarus/machinery.html. Check with a Minnesota Extension office if you don’t have Internet access.