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Can someone work through true harvest costs with me?
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dpilot83
Posted 7/25/2009 13:29 (#787709)
Subject: Can someone work through true harvest costs with me?



Traditionally we have our crops custom harvested. I know nothing about the expenses associated with harvesting on your own. I would appreciate it if someone could look through my numbers and tell me where I'm off. Thanks.

I have 726 acres of corn to harvest this year. 115 acres of it will probably be just over 200 bushels per acre and the remainder will be around 100 bushels per acre.

If I were going to attempt to harvest this myself I would buy:

Equipment

1 Grain Bagger: $17,000

1 Combine: I need help with this one although I'm thinking $50,000 or less

1 Corn Header: I need help with this one as well but I'm thinking maybe $20,000

1 Grain Cart:  $20,000

Disposable:

Bags for 84,000 of storage: $5887

Diesel for combine (12 GPH for 100 hours?):  $2700?

Diesel for graincart tractor (5 GPH for 100 hours?):  $1125?

Hauling 84,000 to end user later: $10080

Diesel for tractor that unloads bags: $500

Depreciation on all equipment: probably minimal because it's all old? I don't know how harvest equipment depreciates

Cost of money to own equipment: $8560

Repairs: I have no idea what to expect for repairs on a $50,000 combine (1688 or very used 2388 maybe?) and header, possibly $5000 a year?

 

Total equipment cost will be around $107,000

Total disposable cost will be around  33,852

 

I can get it all harvested and hauled to town for 38,830. This means I'll have $4978 left over every corn harvest to pay equipment off if I don't pay myself or the cart drive or the guy who unloads the bags with the bagger. This looks like a very poor return on investment to me. What am I doing wrong here? Thanks.

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