New University of Minnesota Extension publication outlines machinery cost estimates

By Bill Lazarus, University of Minnesota Extension

Agriculture producers can find estimates of farm machinery operation costs in a new publication from University of Minnesota Extension, “Machinery Cost Estimates.” The free publication lists both time- and use-related cost figures for machines from tractors and chisel plows to combines and sugar beet wagons.

“Machinery costs are substantial and controlling them is important,” said Bill Lazarus, University of Minnesota Extension economist and author of 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 return for one’s risk and time.”

Owners incur user-related costs only when a machine is used. These include fuel, lubrication, labor and much of repairs and depreciation. Time-related costs, also referred to as overhead costs, accrue to the owner whether or not a machine is used. Interest, insurance, personal property taxes, housing and some depreciation fall into the time-related category.

Internet users can access the free publication at www.extension.umn.edu/farm. Click on “Machinery Cost Estimates” to download the PDF document.

(Bill Lazarus is an economist with the University of Minnesota extension.)