Buying Advice anyone looked at how much per hour it costs to own a cut?

   / anyone looked at how much per hour it costs to own a cut? #1  

fatnfur

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Jul 27, 2010
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13
Hi everyone,
Wondering if long time cut or scut owners have ever broken down cost to own per hour? Obviously some things can't be factored like the convience of having a machine readily available, but if all the costs of purchase, maint, fuel, insurance etc were divided into the useable life of a decent machine what do you think it would be? What if you started with a used tractor with say 500 hours?
 
   / anyone looked at how much per hour it costs to own a cut? #2  
I really don't want to know. The Mrs. might find out.
 
   / anyone looked at how much per hour it costs to own a cut? #3  
I really don't want to know. The Mrs. might find out.

I was thinking the exact same thing, I don't EVEN want to put those costs to paper and pencil...NO way No how.:laughing:
 
   / anyone looked at how much per hour it costs to own a cut? #4  
I was thinking the exact same thing, I don't EVEN want to put those costs to paper and pencil...NO way No how.:laughing:

Yea Why cause trouble? I get enough as it is.
 
   / anyone looked at how much per hour it costs to own a cut? #5  
Hi everyone,
Wondering if long time cut or scut owners have ever broken down cost to own per hour? Obviously some things can't be factored like the convience of having a machine readily available, but if all the costs of purchase, maint, fuel, insurance etc were divided into the useable life of a decent machine what do you think it would be? What if you started with a used tractor with say 500 hours?

The agricultural economics departments at most land-grant universities publish prototype enterprise budgets for use by commercial farmers in making production decisions. These budgets include estimates of the fixed (ownership) and variable (operating) costs for tractors of various sizes that are used in field operations. These estimates depend on assumptions about acquisition costs, hours of annual use, years of use, salvage values, insurance rates, repair and maintenance expenses, fuel costs, etc. The smallest tractor (horsepower-wise) that I have seen used in these budgets is 40 HP in http://faculty.apec.umn.edu/wlazarus/documents/machdata.pdf. Based on 400 hours of annual use, the estimated total cost (fixed + variable) is $11.66/hour.

Steve
 
   / anyone looked at how much per hour it costs to own a cut? #6  
It would be hard to figure out. It would depend a lot on if, and how much, you sold it for and how well you maintain it. I often see 20 year old tractors in good shape selling for close to what they sold for new. You could then take it a step further and try to figure out how much you could have made if you invested the money for that same period of time. Then you would need to figure in what it would of cost to do the work you did with rental equipment.
 
   / anyone looked at how much per hour it costs to own a cut? #7  
You could then take it a step further and try to figure out how much you could have made if you invested the money for that same period of time.

This is a reference to the opportunity cost of your investment in the machine and is discussed in the paper I linked.

Then you would need to figure in what it would of cost to do the work you did with rental equipment.

You could calculate the number of hours of use per year required to breakeven on owning versus renting (H*) using the formula: H* = FC/(R-AVC) where FC = annual fixed (ownership) cost, R is the hourly rental rate (including any fuel you have to provide), and AVC is the average variable (operating) cost per hour of the tractor you own. If H* is less than your expected annual usage, it would pay to rent. However, this calculation ignores the convenience of having the tractor on hand when you need it.

Steve
 
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   / anyone looked at how much per hour it costs to own a cut? #8  
Right now i am at $228 an hour aside from fuel and other misc items. SHHHHHHH like Murphy said we don't need her finding out.
 
   / anyone looked at how much per hour it costs to own a cut? #9  
You'd think this would be an interesting topic. But, I'm afraid there are so many variables that no two posters figures will match or apply to any other poster. Intersting topic indeed. Anxious to see who all jumps in. ;)
 
   / anyone looked at how much per hour it costs to own a cut? #10  
I don't know, don't wanna know. Ignorance works sometimes....
 

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