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Saginaw Michigan | this isnt for you Duane so much as for the original poster. no offense is meant towards your decision to own your own machine
fuel would have been roughly $2/acre?? for your 1620 275 x 2 = 550 x 8 years = 4400
4400 + your repairs or 15000 = 19400 for the 8 years in variable costs
fixed costs of 25000 for the machine,( but it really has a salvage value if you sold it today, so lets say it is worth 10,000 if sold today, it proabbly is more or maybe less, i dont know what shape it is in, just going from what is see on auctions around here) 25000 - 10,000 = 15000. but wait, lets not forget the interest you paid on the 25000, or the interest you could have earned elsewhere 25000 * 6% = 1500 * 8 years = $12,000
so the total FIXED costs are 12000 + 15000 = $32000 for the machine
plus you COULD sell your heads, lets assume 7500 is what you could get for your heads, i assume they are in good shape, so they would be worth more, but lets be conservative. 7500 * 6% on your money invested elsewhere, = 450/year 450 * 8 = 3600.
TOTAL FIXED COSTS = 32000+3600 = 35600
TOTAL VARIABLE COSTS = 19400 (not including labor)
19400 + 35600= 55000
55000(custom cost) - 55000 = 0
so all the wrenching you did in the shop and all the seat time in the field returned you 0 dollars to labor, but you did get the satisfaction of doing it yourself, and KNOWING that you were able to get your crops harvested in a timely manner.
i laid out roughly the same scenario when my father in law was shopping for a combine for his 200 acres a few years ago... needless to say instead of hiring me to do his work (at 20/acre) he bought a nice 1460. dont think he has regretted it either.
-mike | |
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Which combine to buy??
