So what is your cost to operate your tractor?

[MossRoad]

I don't even want to think about diesel.... were using probably over 400 gal a day at the moment with combining and cultivating...!

Just out of curiosity, how many acres are you involved in? I've got two parcels. One is one acre+ and the other is 20.

 

[MtnViewRanch]

Just out of curiosity, how many acres are you involved in? I've got two parcels. One is one acre+ and the other is 20.

I faintly remember that he has 3500 acres. But I very well could be wrong.

 

[brin]

You make a great point everyone should factor in to the cost of owning and operating thier tractor. Don't forget to do that cost vs. befefit analyisis. Years ago after I bought my farm I bought a used JD 450 trac loader and we used it for about 2 yrs. clearing the stumps after logging had finished on the portion I wanted for pastures, after we were finished and the final grading was complete I sold the loader for the same thing I paid for it. I had spent about $1,500.00 in maintenance and fuel costs but had I paid a grading contractor for the same work it would have cost well over $10,000.00 - so that is what needs to be considered I think. Oh and don't forget how handy a tractor is especially if you have a FEL...I can't imagine what it would have cost in time and hiring contractors to do the jobs around the house and farm that I have done over the years with my front end loader alone...

 

[SPYDERLK]

Lets see ... $36K incl B/Hoe - - ~$2K fuel and maintenance in 500hrs. About $79/hr so far. Going down every day.
larry

 

[MtnViewRanch]

Lets see ... $36K incl B/Hoe - - ~$2K fuel and maintenance in 500hrs. About $79/hr so far. Going down every day.
larry

Larry, if you had rented or hired the jobs out that you have done, then how much $$$$$ would you be out?

 

[SPYDERLK]

Larry, if you had rented or hired the jobs out that you have done, then how much $$$$$ would you be out?

...Less.
larry

 

[MtnViewRanch]

...Less.
larry

We are waaaaay ahead of the game for the work that has been accomplished with our tractors.

 

[D7E]

Just out of curiosity, how many acres are you involved in? I've got two parcels. One is one acre+ and the other is 20.

...HMMM....1260 acres of crops and 200 acres of hay of our own ,around 300 acres of custom work.."combining /baling/seeding" and the bush clearing with the dozer..

 

[MossRoad]

...HMMM....1260 acres of crops and 200 acres of hay of our own ,around 300 acres of custom work.."combining /baling/seeding" and the bush clearing with the dozer..

Hmmm.... 1700 VS 21... I'll bow to your experience!

 

[Lyrch75]

We always figured the cost of operation thus:

Total Purchase cost (this would include finance charges)/low average hour lifespan of the machine. This would give us our static rate for the machine and we would use it for every job.

Then maint cost:
X cost per 200 hours/200 (oil, filters, fluids)
Y cost per 2,000 hours/2000 (tires, tracks, etc)

We would then add in fuel cost
fuel burn rate * fuel cost

Then operator wage and benefits.
We estimated the insurance and transport into the bottom of the bid, we did not assign them in the hourly rate, so you may want to add them into the cost.

See if I can make this look right.

Dozer A static cost.
$100,000 sticker + $10,000 interest = $110,000
Dozer A's Low average commercial lifespan is 9,000 hours.
$110,000/9,000=$12.25 Static Cost. This number never changes.

Dozer A: Maint
$750 per 200 hr (or what ever interval is used) GOF
$750/200hr = $3.75/hr
$5,000 per 2k hours for new tires or under carriage work.
$5,000/2k hr= $2.50/hr

Dozer A: Fuel Cost. This is the one that requires a very close eye, screw up on this and it will hurt you.
4 gallons per hour @ $3 a gallon = $12

Static cost: $12.25
Basic Mtnc :$ 3.75
Wear Mtnc :$ 2.50
Fuel Cost :$12.00
Machine :$30.50/hr

This is what it costs to turn the (hypothetical) machine on and use it in a manner that doesn't cause breakage. Now you haven't paid for your time, the insurance, or gotten any ROI using this.