These tables of estimated operating and ownership costs for various machinery operations were compiled as part of research conducted under Agricultural Experiment Station Project H-076, entitled "Economics of Farming Systems Alternatives in Eastern South Dakota". Machinery cost estimates are needed in that project in order to determine fixed and variable costs of production for alternative crops, crop rotations, cultural practices, and tillage systems. The machine costs included in this pamphlet are derived primarily from Dr. Herbert Allen's Economics Pamphlet 153, Costs per Hour and per Acre for Machine Operations, last revised in March 1986. Some of the machinery prices in Allen's publications were updated, however, to reflect most recent market conditions. Also, we changed the hours of use and certain other assumptions for some machine operations. Moreover, the tables in this pamphlet contain many machine operations not included in Allen's pamphlet. These various additions and changes are listed in Appendices 1, 2, and 3. In addition to being used for crop budget estimation purposes, the tables in this pamphlet can be used by individuals wishing to determine appropriate farm custom rates. Extension Agents and others who receive questions about appropriate farm custom rates can refer to these tables on costs of ownership and operation. These costs can then be compared to rates reported for the most recent SDSU Economics Department custom rate survey. (The most recent survey was conducted in the Fall of 1986.) Individual circumstances and local conditions should also be considered in establishing a custom rate that is consistent with local market conditions and that seems "equitable" to both the custom operator and the purchaser of the custom services.
Dobbs, Thomas; Thaden, Ron; and Peckham, Dale, "Machine Cost Estimates for Custom Rate Consideration" (1987). Economics Pamphlet Series. 20.