fm6e-chapter22

fm6e-chapter22 - Farm Management Chapter 22 Machinery...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Farm Management Chapter 22 Machinery Management
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
farm management chapter 22 2 Chapter Outline Estimating Machinery Costs Examples of Machinery Cost Calculations Factors in Machinery Selection Alternatives for Acquiring Machinery Improving Machinery Efficiency
Background image of page 2
farm management chapter 22 3 Chapter Objectives 1. Illustrate the importance of good machinery management 2. Identify the costs associated with machinery 3. Demonstrate procedures for calculating machinery costs 4. Discuss important factors in machinery selection 5. Compare owning, renting, leasing, and custom hiring 6. Present methods for increasing efficiency 7. Introduce factors that influence when machinery should be replaced
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
farm management chapter 22 4 Estimating Machinery Costs Depreciation Interest Taxes Insurance Housing Leasing Repairs Fuel and lubrication Labor Custom hire or rental Other operating costs Ownership Costs Operating Costs
Background image of page 4
farm management chapter 22 5 Capital Recovery Capital recovery = [amortization factor x (beginning value – salvage value)] (interest rate x salvage value) +
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
farm management chapter 22 6 Table 22-1 Estimated Salvage Value as Percentage of New List Price Source: ASAE Standards, 2001 Age of machine Tractor Tractor in years 80-149 HP 150 + HP Combine Baler Tillage Planter 1 68% 67% 70% 56% 61% 65% 2 62 59 59 50 54 60 3 57 54 51 46 49 56 4 53 49 45 42 45 53 5 49 45 40 39 42 50 6 46 42 36 37 39 48 7 44 39 32 34 36 46 8 41 36 29 32 34 44 9 39 34 26 30 31 42 10 37 32 22 28 30 40 11 35 30 21 27 28 39 12 34 28 18 25 26 38 Assumed hours of annual use 400 400 275 _ _ _
Background image of page 6
farm management chapter 22 7 Table 22-2 Average Repair Costs per 100 Hours of Use, Percent of New List Price Source: Hunt, Donnell; see Machine Percent of list price % Two-wheel-drive tractor 0.83 Four-wheel-drive tractor 0.50 Moldboard plow 5.00 Tandem disk 3.00 Chisel plow 3.75
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 27

fm6e-chapter22 - Farm Management Chapter 22 Machinery...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online