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Franklinton, LA | I think the universities have a very good procedure for computing equipment operating cost. However, you must decide it the data they use with the procedure is accurate. I would suggest using their procedure for computing equipment operating cost and using your data. This should give you a reasonable estimate of your cost. Your cost for labor and fuel should be fairly easy to obtain. The cost for interest on investment (opportunity cost), repair cost and depreciation are based on new equipment. Check to see if the numbers they use for the price are reasonable for your area. Depreciation and interest on investment will be lower for equipment that has been in service for a few years. However, this equipment must be replaced when it is worn out. I would suggest using new equipment cost to compute interest on investment and depreciation. Please keep in mind that you deserve a reasonable pay rate for your actual labor and time involved in managing this work. You also deserve a reasonable profit for placing your capital at risk. Labor cost and profit are not the same thing! | |
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Custom farming?
