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Outline
• Estimate costs of per acre sprayer operations for inclusion on farmdoc
• Evaluate for four situations
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Custom Rate Surveys
Type Avg. RangeIowa, 2005 Tractor 4.95 (3.50 – 8.50) Self propelled 5.05 (3.50 – 8.00) Airplane 5.80 (5.00 – 6.75)Purdue, 2004 Tractor 4.81 (3.32 – 6.29)
Highboy 5.44 (3.77 – 7.12) Airplane 6.22 (4.30 – 8.14)
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Situations Evaluated
1. Pull-type, well-equipped, 90 ft boom
2. Pull-type, economical, 40 ft boom
3. Self-propelled, High boy, 90 ft boom
4. Self-propelled, Coupe, 60 ft boom
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Tendering Costs
$50 per hour for truck and labor
Acre/hr Cost/acre
1. Pull-type, well equip 50 $1.00 2. Pull-type, economical 23 2.173. Self-prop, high crop 50 1.004. Self-Prop, coupe 41 1.21
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Pull-Type SprayerWell Equipped
• $25,000 purchase price• 90 ft boom• Hold 10 years (sell for $5,200)• $1.50 fuel price, 7% interest
rate, $13.50 labor price• Covers about 50 acres per hour
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Acres per Hour
Speed 8 miles per hr.x feet per mile 5,280 feetx boom width 90 feet÷ area per acre 43,560 square
feetThe. capacity 87 acresx field efficiency 60%Acres covered 52
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Tractors Charges (155 HP)Based on Per Hour Costs
Per Year Per Hour Depreciation $4,867 $16.22
Interest 3,714 12.38 Housing 531 1.77 Repair 627 2.09 Fuel and Lub 3,362 11.20 Labor 4,455 14.85 Total 17,555 $58.51
From Machinery Cost Estimates on farmdoc
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Per Hour Tractor Cost by HP
33.55
41.5544.1546.85
55.2558.55
68.15
20
30
40
50
60
70
80
0 50 100 150 200
Horsepower
$ p
er
ho
ur
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Pull Type Sprayer (4,000 acres)Costs per Acre
Sprayer Tractor Total
Depreciation .50 .31 .81Interest .21 .24
.45Repairs .21 .04 .25Ins + House .04 .03 .07Fuel .21 .21Labor .28 .28Total .96 1.11 2.07
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Per Acre Costs for Different Acres
Acres Cost1,000 $4.232,000 2.773,000 2.304,000 2.075,000 1.94Holds tractor hour costs constant
**No tendering costs ($1.00 per acre)
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Pull Type SprayerEconomical
• $14,000 purchase price• 40 foot boom• Hold 10 years ($0 salvage value)• 105 HP tractor• 23 acres per hour (60% field
efficiency)
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Per Acre Costs for Different Acres
Acre s Cost1,000 $4.192,000 3.223,000 2.904,000 2.765,000 2.69
Holds tractor hour costs constant Do not include tendering costs ($2.17)
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Pull Type Sprayers, Per Acre Costs
Acre s 90 ft. 40 ft.
1,000 $4.23 4.192,000 2.77 3.223,000 2.30 2.904,000 2.07 2.765,000 1.94 2.69
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Why not much difference?
• Tractor cost spread over fewer acre
• 90 foot boom (155 HP)– $58.51/ 50 acres = $1.17 per acre
• 40 foot boom (105 HP)– $44.13 / 23 acres = $1.92 per acre
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Self Propelled SprayerHigh Crop
• $192,000 purchase price• 90 foot boom• High boy• Hold for 10 years ($40,000
value)• 50 acres per hour (60% field
efficiency)
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Salvage Value
• Work from Kansas State• http://www.agmanager.info/• Kastens and Dhuyvetter• Developed OwnSpray.xls to
estimate costs of self-propelled machines
• Salvage values:– Drop 15% for each year– Drop 1% for each 100 hours
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Self Propelled, High Boy (10,000 acres)
Costs per Acre Total Per Acre
Depreciation 15,213 1.52Interest 6,511 .65Repairs 4,000 .40 Ins + House 1,160 .12Fuel 2,484 .23Labor 2,224 .24Total 31,920 3.16
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Per Acre Costs for Different AcresHigh Boy **
Acres Cost5,000 $5.457,500 3.92
10,000 3.16 12,500 2.70 15,000 2.39
** No tendering costs ($1.00)
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Self Propelled SprayerSpray Coupe
• $91,000 purchase price• 60 foot boom• No tall crop ability• Hold for 10 years ($19,000
value)• 41 acres per hour (60% field
efficiency)
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Self Propelled (10,000 acres)Costs per Acre
Total Per AcreDepreciation 7,207 .72Interest 3,084 .31Repairs 4,000 .40 Ins + House 550 .06Fuel 1,743 .17Labor 3,582 .36Total 20,166
2.02
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Per Acre Costs for Different AcresSpray Coupe
Acres Cost5,000 $3.107,500 2.37
10,000 2.02 12,500 1.80 15,000 1.66
** No tendering costs ($1.21)
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Self Propelled Sprayers, Per Acre Costs
Acre s High crop Coupe
5,000 $5.42 $3.107,500 3.92 2.37
10,000 3.16 2.02 12,500 2.70 1.80 15,000 2.39 1.66
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Why difference?
• Difference due to initial costs of machine
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Summary
• Must run over sufficient acres to get costs approaching custom rates.
• Some instances of cost savings.
• Additional reasons justifying ownership from other than cost savings perspective
