How much does it cost per hour to run a tractor.

[oldpilgrim]

Horse market is pretty low!!

buying or maintaining?

 

[Green Acres Homestead]

Depreciation is your major expense. On a NEW tractor-loader figure depreciation at $12-15 per hour for first 500 hours, then $10 per hour for next !,000 hours. Depreciation is only somewhat dependent on tractor size in the 16-45 horsepower range, it is more dependent on inside/outside storage, upkeep, maintenance log, sales skills and the state of the economy when you sell. (And, yes, my tractor resides in the humidity controlled garage. The cars live in the driveway.)

thanks for these figures. I believe this to be a good figures.

 

[Green Acres Homestead]

Cost per hour. I have crunched some numbers on this awhile back. Dont know if I did it right but here is my figures. buy up maintenance insurance fuel usage trade in/depreciation value Keep in mind the longer you keep the tractor and more hours per year you use it, the less per hour your costs will be, so those who buy a 20,000 tractor to mow 10 acres, till the garden once or twice, and plow the driveway each winter will have a higher per hour cost then someone who mows more, tills more, and plows more driveways. Here is my example. Kubota b7800 tractor with loader buy up= 16,000 maintenance per year=300 Insurance per year=200 fuel per year (1/2 gal/hr@ $4.00/gal)=600 I put about 300 hours per year r on unit and plan on keeping it for 10 years. As for the trade in/depreciation I take the buy up cost and double it as to guesstimate trade in value towards buying a new replacement and add for inflation of future sale prices, so now buy up/trade in/depreciation cost is 32000 or 3200/year for 10 years. Total approx cost per year to run tractor (add up all costs)=4300/year Now divide by total hours per year (my case 300)=$14.33/hour So for me to own and run my kubota b7800 costs me about $14.33/hour. Now the is other variables such as mentioned like saving money by not hiring out and saving on hassle. The list could go on and on. I have actually tried to figure all my variables in and came up with a per hour cost of $6.00/hour. That is a story for an no ther day. Dont know if I did all that math right, but that is how I figure my operating costs.

this sounds bang on to me. I have a 47 hp l series kubota so my cost would be a bit more. Thanks for your input.

 

[Utopia Texas]

It cost me less per year to run my tractor than it costs my neighbor to have a deer lease and I don't freeze my butt off while having fun!

 

[schiker]

I like the idea of comparing to real business model by other professionals.

I think its a reality check to compare the number to what a commercial rental would cost. If your figure isn't ( I don't know but guess something like ) ~80% of rental figure I would say you are off the mark.

 

[Green Acres Homestead]

Well from an accounting point of view and after everything that was said the variable cost (cost that are associated with running a tractor 1 hour ei fuel, oil change, maintenance) I come to the conclusion that my Kubota L4740 at $1.18/litre runs for approximate $15.00 per hour.

If I make above this Varable cost then the job is worth doing because there is money that goes towards the fix costs. I will price my jobs at $1 per minute. That will turn a profit.

When it come to working my 23 acres it is about enjoying but manage my work load knowing it cost $15 an hour Varable cost and around another $10 for fixed cost. That is the best I can figure and keep it simple enough.

Thanks everybody.

 

[ovrszd]

I guess my intent of asking the question is when I am bidding a job I have to know how much is my cost. I do logging sometimes which there is not much money in so I have to keep a close eye on my cost to see if it is even worth doing. You are right...when I do my own work I just sit back and enjoy doing it. Guess I am still hooked on my business background the fun of figuring out the cost and accounting work.

For logging I will go with $15 per hour and it takes an hour to skid a cord out to the landing in a short haul so $15 a cord to skid the logs if I don't brake anything.

I totally understand. And I agree, you shouldn't do work for hire without a cost estimate first. Otherwise how can you know what to charge. Real hard to figure in replacement cost of the machinery involved but that is also one of the most critical costs to consider.

I'm not in the "for hire" business. With that said, there isn't any type of tractor work I would hire out to do for $15 per hour. Bare tractor I'd look at $40 p/hr minimum. Tractor with FEL, $60 p/hr minimum. I base that on the production or work I could accomplish in an hour with either the bare tractor, or tractor w/FEL. For example, if moving loose material, I can move more material in an hour with my tractor/FEL than a person working by hand could do in a full day. Can you find a man that will shovel and transport loose material all day for $60?? I doubt it.

Edit: Sorry, I should have read to the end before posting this. You are spot on at $1 p/minute.

 

[Green Acres Homestead]

I totally understand. And I agree, you shouldn't do work for hire without a cost estimate first. Otherwise how can you know what to charge. Real hard to figure in replacement cost of the machinery involved but that is also one of the most critical costs to consider. I'm not in the "for hire" business. With that said, there isn't any type of tractor work I would hire out to do for $15 per hour. Bare tractor I'd look at $40 p/hr minimum. Tractor with FEL, $60 p/hr minimum. I base that on the production or work I could accomplish in an hour with either the bare tractor, or tractor w/FEL. For example, if moving loose material, I can move more material in an hour with my tractor/FEL than a person working by hand could do in a full day. Can you find a man that will shovel and transport loose material all day for $60?? I doubt it. Edit: Sorry, I should have read to the end before posting this. You are spot on at $1 p/minute.

yep. And that still is not getting rich.

 

[two_bit_score]

yep. And that still is not getting rich.

Determining cost is only the first step. Next you have to decide how much you need to make above 'cost' to keep doing the work. That is if economics is your motivation.

 

[KiwiBro]

Can you find a man that will shovel and transport loose material all day for $60?? I doubt it.

Provided they can't find somebody else with a tractor offering the same services for less who is still happy to be making some money over costs. Or they can't hire a tractor for less.

I know I'm in the minority in my thinking but getting rich isn't anywhere near as powerful a motivator for me as doing a fair days work for a fair pay that covers expenses and allows a little aside for rainy days or emergencies. Anything more than that and I start feeling guilty and like I'm becoming one of lifes speculative, $-driven undesirable cogs in a selfish capitalist machine that is determined to run our country and all aboard off yet another financial cliff.

Now, please don't get me wrong, I'm not dissing anyone here, and if $60/hr is what it takes to earn that fair living, then sweet as, but I just wanted to sound my own, allegedly insane, cautionary note about the responsibility I think we all have to keep a lid on things, lest it turns into an unsustainable train wreck just like all the others that litter history. The ones we never seem to learn from.