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| I’m gonna throw out some numbers for an example. Your actual numbers will vary but the process will be the same
First, rental rate for that size tractor. Say $25/hour
Second, fuel. Say 8 gallons/hr at$4.50/gallon is $36/hr
Third, add 10-15% to fuel for oil and minor repair and maintenance. Majors are covered by tractor rent. $4/acre
Next , your time at $30/hr
Finally drill rental. Say $5/acre?
Total hourly costs, in this case $95/hour. Divide by your acres per hour, say 7 acres/hour, then add drill rental cost
So 95 divided by 7 is approximately 13.60. Add 5 and your cost per acre is $18.60. Note that this does not figure in a profit, but does include a return on investment and labor Is that competitive in your market area? I can’t answer that but you need to. And again the numbers I used are for illustration only, you need to supply your actual numbers
Good luck | |
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First Time Getting an Operating Note
