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Blue Earth, MN | I would like to know other methods to figure machinery cost/acre.
The one I've used is Moe Russell's version. His method takes the value of the equipment X 0.25 / # of acres.
I've heard Moe speak and believe he said a good operation will have a machinery cost of about $50-60 per acre.
I understand machinery values change as one goes from central Kansas to southern MN. But, to me that seems pretty hard to do in SC MN. For example: 2000 acre farm @ $60/acre/.25 = $480,000 total machinery value.
Basics:
One tractor (Late model for reliability reasons since there is only one tractor)--$120,000
Combine (3-5 year old combine, includes heads)--$190,000
Planter--$50,000
Sprayer(pull type or 3 pt mount)--$20,000
This leaves about $100,000 left over. If one figures in tillage, it pretty much drives the need for a second tractor. Or, for you narrow row bean guys, put in the extra cost for either a 15/30" planter or a seperate planting unit all together.
In my opinion, planter size is what should drive everything else. Jim @ Dawn's formula from his post on crop talk:
http://talk.newagtalk.com/forums/thread-view.asp?tid=86829&mid=6211...
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Machinery Cost/Acre
