Transcript Slide 1

Sprayer Economics
Gary Schnitkey
[email protected]
University of Illinois
Outline
• Estimate costs of per acre sprayer
operations for inclusion on farmdoc
• Evaluate for four situations
www.farmdoc.uiuc.edu
www.farmdoc.uiuc.edu
www.farmdoc.uiuc.edu
www.farmdoc.uiuc.edu
Custom Rate Surveys
Type
Avg.
Iowa, 2005
Tractor
4.95
Self propelled 5.05
Airplane
5.80
Purdue, 2004
Tractor
4.81
Highboy
5.44
Airplane
6.22
Range
(3.50 – 8.50)
(3.50 – 8.00)
(5.00 – 6.75)
(3.32 – 6.29)
(3.77 – 7.12)
(4.30 – 8.14)
www.farmdoc.uiuc.edu
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
www.farmdoc.uiuc.edu
Tendering Costs
$50 per hour for truck and labor
Acre/hr Cost/acre
1.
2.
3.
4.
Pull-type, well equip
Pull-type, economical
Self-prop, high crop
Self-Prop, coupe
50
23
50
41
www.farmdoc.uiuc.edu
$1.00
2.17
1.00
1.21
Pull-Type Sprayer
Well 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
www.farmdoc.uiuc.edu
Acres per Hour
Speed
x feet per mile
x boom width
÷ area per acre
The. capacity
x field efficiency
Acres covered
8 miles per hr.
5,280 feet
90 feet
43,560 square feet
87 acres
60%
52
www.farmdoc.uiuc.edu
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
www.farmdoc.uiuc.edu
Per Hour Tractor Cost by HP
80
$ per hour
70
68.15
60
58.55
55.25
50
46.85
44.15
41.55
40
33.55
30
20
0
50
100
Horsepower
www.farmdoc.uiuc.edu
150
200
Pull Type Sprayer (4,000 acres)
Costs per Acre
Depreciation
Interest
Repairs
Ins + House
Fuel
Labor
Total
Sprayer
.50
.21
.21
.04
.96
Tractor
.31
.24
.04
.03
.21
.28
1.11
www.farmdoc.uiuc.edu
Total
.81
.45
.25
.07
.21
.28
2.07
Per Acre Costs for Different Acres
Acres
1,000
2,000
3,000
4,000
5,000
Cost
$4.23
2.77
2.30
2.07
1.94
Holds tractor hour costs constant
**No tendering costs ($1.00 per acre)
www.farmdoc.uiuc.edu
Pull Type Sprayer
Economical
•
•
•
•
•
$14,000 purchase price
40 foot boom
Hold 10 years ($0 salvage value)
105 HP tractor
23 acres per hour (60% field
efficiency)
www.farmdoc.uiuc.edu
Per Acre Costs for Different Acres
Acres
1,000
2,000
3,000
4,000
5,000
Cost
$4.19
3.22
2.90
2.76
2.69
Holds tractor hour costs constant
Do not include tendering costs ($2.17)
www.farmdoc.uiuc.edu
Pull Type Sprayers, Per Acre Costs
Acres
1,000
2,000
3,000
4,000
5,000
90 ft.
$4.23
2.77
2.30
2.07
1.94
www.farmdoc.uiuc.edu
40 ft.
4.19
3.22
2.90
2.76
2.69
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
www.farmdoc.uiuc.edu
Self Propelled Sprayer
High Crop
•
•
•
•
•
$192,000 purchase price
90 foot boom
High boy
Hold for 10 years ($40,000 value)
50 acres per hour (60% field
efficiency)
www.farmdoc.uiuc.edu
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
www.farmdoc.uiuc.edu
Self Propelled, High Boy (10,000 acres)
Costs per Acre
Depreciation
Interest
Repairs
Ins + House
Fuel
Labor
Total
Total
15,213
6,511
4,000
1,160
2,484
2,224
31,920
www.farmdoc.uiuc.edu
Per Acre
1.52
.65
.40
.12
.23
.24
3.16
Per Acre Costs for Different Acres
High Boy **
Acres
5,000
7,500
10,000
12,500
15,000
Cost
$5.45
3.92
3.16
2.70
2.39
** No tendering costs ($1.00)
www.farmdoc.uiuc.edu
Self Propelled Sprayer
Spray 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)
www.farmdoc.uiuc.edu
Self Propelled (10,000 acres)
Costs per Acre
Depreciation
Interest
Repairs
Ins + House
Fuel
Labor
Total
Total
7,207
3,084
4,000
550
1,743
3,582
20,166
www.farmdoc.uiuc.edu
Per Acre
.72
.31
.40
.06
.17
.36
2.02
Per Acre Costs for Different Acres
Spray Coupe
Acres
5,000
7,500
10,000
12,500
15,000
Cost
$3.10
2.37
2.02
1.80
1.66
** No tendering costs ($1.21)
www.farmdoc.uiuc.edu
Self Propelled Sprayers, Per Acre Costs
Acres
5,000
7,500
10,000
12,500
15,000
High crop
$5.42
3.92
3.16
2.70
2.39
www.farmdoc.uiuc.edu
Coupe
$3.10
2.37
2.02
1.80
1.66
Why difference?
• Difference due to initial costs of
machine
www.farmdoc.uiuc.edu
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
www.farmdoc.uiuc.edu