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How do you figure labor costs for yourself and equipment?
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Hay Wilson in TX
Posted 3/7/2008 08:39 (#327984 - in reply to #327778)
Subject: Did not see any that were obvious for equipment operational cost.



Little River, TX
On a guess the program, riding on Excel, may be like the some other programs I have seen.
The ones I have seen are based on the Doan's Book information and equations.
I use a 20 year old TAMU Lotus 123 1A template that is much as you describe.
Oklahoma has or had a really interesting program that is a Windows Program.

One problem with custom rates is they are e usually based on a per bale or per acre pricing. The problem is our equipment runs by the hour and a per bale and or per acre cost is a compromise using averaged productivity. Productivity is better with long straight fields and falls off rapidly with odd shaped fields and point rows.

With small square bales, 75 to 90 bales per acre, last year, I could put a bale on the ground for 85ยข. On other fields that take 3 hours to cut, three hours to rake, and 30 minutes to bale my cost can be in the $2/bale range. The only per bale charge I have is the cost of baling wire.
For custom baling I take my cost plus 20% as my charge. Some jobs I charge my cost plus 40%.
I work with a stop watch. As long as the machinery is moving the watch is running. If I have a stoppage that is caused by a surprise in the field then the watch is kept running till all repairs are accomplished.

Your cost per hour will vary with the actual equipment you are using. What is the fuel per hour, your purchase cost, and replacement cost will all be different than your neighbor's.
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