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Example 01- Tractor, New

Machinery Calculation View

Machinery Calculations

Introduction
This tool calculates totals for input machinery uris. The discounted totals include operating, allocated overhead, and capital costs. Operating costs include fuel, repair and maintenance, and labor costs. Allocated overhead costs include capital recovery, and taxes, housing and insurance costs. When added to an operation or component, power inputs set maximum PTO horsepower properties while nonpower inputs set equivalent PTO horsepower and field capacity properties.

Calculation View Description
These calculations can be verified using the Hallam et al reference as follows: Fuel : page 5-31, Oil : page 5-32, Repair : pages 5-14 to 5-16, Capital Recovery : page 7-7. V214f

Version: 1.6.3

Feedback About crops/input/Example 01- Tractor, New/2147375216/agmachinery

Step 1 of 4. Make Selections


Examples:
Field Efficiency: 99.000  Speed: 20.00  Width: 10.00

Step 2 of 4. Make Selections


Prices

Optional Machinery Selection and Scheduling Size Range

Step 3 of 4. Calculate

Relations

Use In Childs?
Overwrite Childs?

Operating Costs

Area hours/acre : 0.0417
Fuel (gal/hr): 6.9135
Fuel Cost: 13.8270
Lube Oil Cost: 0.1054
Repair Cost: 4.9536
Labor Cost: 13.2000
Total Operating Cost ($/hour):
32.086

Allocated Overhead Costs

Capital Recovery Cost: 10.2055
Taxes, Housing, Insurance: 0.5924
Total Allocated Overhead Cost ($/hour):
10.798
Capital Cost:53610.000
Capital Unit: each

A. Select options

Capacity Options:
Vary Time Options
Inflation Options
Fuel Options

B. Fill in machinery variables

53,610.0000

Step 4 of 4. Save

Method 1. Do you wish to save step 2's calculations? These calculations are viewed by opening this particular calculator addin.

Instructions (beta)

Step 1

  • Step 1. Machinery Constants: The constants derive from ASABE publication ASAE D497.7 listed below.
  • Step 1. Real and Nominal Rates: The nominal rate includes inflation while the real rate does not. In the USA, DevTreks recommends using Office of Management and Budget rates for the same year as the date of the input.

Step 2

  • Step 2. Fuel Prices: The prices should be as of the date of the input. Prices that won't be used, such as natural gas prices, do not need to be filled out.
  • Step 2. Labor Prices: These prices should reflect actual gross hourly wages for each category of labor.
  • Step 2. Tax Percent: A percent that is multiplied by the market value to derive a tax cost. Similar to mill rates (percent tax per $1000 of assessed value).
  • Step 2. Housing Percent: A percent that is multiplied by the market value to derive a housing cost.
  • Step 2. Insure Percent: A percent that is multiplied by the market value to derive an insurance cost.
  • Step 2. Size Ranges: This information is optional. Machinery selection and scheduling analyzers use these ranges to determine feasible combinations of machinery (i.e. least cost) in operations and components. The numbers entered should be reasonably related, but not equal, to the associated numbers entered in step 3. The size column is width. The HP column should be maximum PTO horsepower, or horsepower, for power inputs. For nonpower inputs, the number should reflect an associated, typical, power input. The speed and efficiency columns are used with the width column to determine field, or service, capacity. The Equivalent PTO HP is used to determine fuel amounts and costs. If the last three columns are left blank or zero, ratios derived from step 3 will be used in calculations. The references below explain how these parameters are used in machinery selection and scheduling.

Step 3

  • Step 3. Use Same Calculator Pack In Descendants?: True to insert or update this same calculator in children.
  • Step 3. Overwrite Descendants?: True to insert or update all of the attributes of this same calculator in all children. False only updates children attributes that are controlled by the developer of this calculator (i.e. version, stylehsheet name, relatedcalculatorstype ...)
  • Step 3. What If Tag Name: Instructional videos explaining the use of what-if scenario calculations should be viewed before changing or using this parameter.
  • Step 3. Related Calculators Type: When the Use Same Calculator Pack in Descendant is true, uses this value to determine which descendant calculator to update. Inserts a new descendant when no descendant has this same name. Updates the descendant that has this same name.
  • Step 3. Capacity Options: The materials option is only used when machinery, such as balers, do not cover each square foot of a field.
  • Step 3. Vary Time and Output Options: These options change the the operating costs (fuel, repair, labor, lube). The 'Costs Vary Over Time' option calculates an amortized average annual repair cost adjusted for inflation (see Hallam et al equation 5.18). The 'Costs Do Not Vary Over Time' option calculates repair costs, with no inflation adjustments, using ASABE repair cost equations.
  • Step 3. Inflation Options: These options change the operating and capital recovery costs.
  • Step 3. Fuel Options: Machinery that is being used for specific operations, such as planting, should use the 'Operation' option. Machinery that may be used in several operations should use the 'Enterprise' option.
  • Step 3. Market Value: Before a calculation is run for the first time, this number will be zero. When the calculation is run the parent input's CAPPrice is used as the market value.
  • Step 3. List Price Adjustment: A multiplier that is used to increase the market value to the list price. For example, if the list price of an item of machinery is ten percent more that the market value, enter 10. This number is divided by 100 in the calculations.
  • Step 3. Scheduling Efficiency and Labor Adjustment: A multiplier that is used to adjust the amount of labor needed to use the machinery for the specified area (i.e. acre or hectare). For example, if the time spent setting up the machinery or transporting the machinery adds ten percent to the total amount of time it takes to complete the specified area, enter 10. If the scheduling of the machinery's use often causes the equipment operator to be idle, add an additional adjustment. This number is divided by 100 in the calculations.
  • Step 3. Field Efficiency Typical: "The ratio between the productivity of a machine under field conditions and the theoretical maximum productivity" (see ASABE). In general, we recommend using the default ASABE value that comes from selecting a machinery constant. This number is divided by 100 in the calculations. Note that all fields requiring a percent in DevTreks' calculators should be entered as a whole number (unless the percent is less than 1%).
  • Step 3. Area: Also known as service capacity or effective field capacity, is the number of hours used by the machine per acre (hectare). This number is used to set operating and allocated overhead cost amounts.
  • Step 3. Per Hour Costs: With the exception of the capital cost, all costs are per hour of machinery use. Total cost per acre is calculated at cost (per hour) x area covered (hours per acre). For example, if an implement is used for .10 hours per acre and the repair cost is $10 per hour, the total repair cost per acre is $1 per acre.
  • Step 3. Fuel Cost: The quantity of fuel consumed per hour (by the power input) multiplied by the fuel price.
  • Step 3. Repair Cost: 'Includes replacement parts, materials, shop expenses, and labor for maintaining a machine in good working order.'(ASABE)
  • Step 3. Labor Cost: The quantity of labor used per hour multiplied by the labor price.
  • Step 3. Lube Cost: 'Oil consumption is defined as the volume per hour of engine crankcase oil replaced at the manufacturers recommended change interval' (ASABE).
  • Step 3. Operating Cost: Costs associated with the resources expended (expendables) during the production cycle.
  • Step 3. Capital Recovery Cost: Annual ownership cost, adjusted for inflation (unless the the no inflation option is chosen). 'This cost reflects the reduction in value of an asset with use and time.' (ASABE)
  • Step 3. Taxes, Housing and Insurance Cost: These are calculated as a percent of the market value of the machinery.
  • Step 3. Allocated Overhead Cost: All costs that are not operating costs (that are not expendables), such as capital costs.
  • Step 3. Capital Cost: Initial market value (purchase price) of the machinery.

References

  • American Society of Agricultural and Biological Engineers, ASAE D497.7 MAR2011 Agricultural Machinery Management Data
  • American Society of Agricultural and Biological Engineers, ASAE EP496.3 FEB2006 (R2011) Agricultural Machinery Management
  • Hallam, Eidman, Morehart and Klonsky (editors) Commodity Cost and Returns Estimation Handbook, Staff General Research Papers, Iowa State University, Department of Economics, 1999

Current view of document
Example 01- Tractor, New
Input Group
Calculator Examples
Input: Example 01- Tractor, New
Market Value Salvage Value Cap Recov Cost THI Cost Starting Hrs Planned Use Hrs Useful Life Hrs Horsepower Speed Width
Fuel Amount Fuel Price Fuel Cost Labor Amount Labor Price Labor Cost Lube Oil Amounts Lube Oil Price Lube Oil Cost Repair Cost
Equiv PTO HP Field Efficiency Operating Cost Alloc OH Cost
53610.00 7566.00 10.2055 0.5924 0 300 12000 140 20.0000 10.0000
6.9135 2.0000 13.8270 1.1000 12.00 13.2000 0.0351 3.0000 0.1054 4.9536
70 99.0000 32.086 10.798
Input Series: Example 1- Tractor, Updgraded from parent running descendent
53610.00 7566.00 13.5766 0.6117 0 300 6000 140 5.0000 10.0000
6.9135 2.0000 13.8270 1.1000 12.00 13.2000 0.0351 3.0000 0.1054 2.4768
70 80.0000 29.609 14.188
Input Series: Example 1- Tractor, New Calculators
53610.00 7566.00 13.5766 0.6117 0 300 6000 140 5.0000 10.0000
6.9135 2.0000 13.8270 1.1000 12.00 13.2000 0.0351 3.0000 0.1054 2.4768
70 80.0000 29.609 14.188
Group Totals
Dataset: Example 01- Tractor, New IRI This example demonstrates machinery cost calculations for new equipment using fuel costs based on operations, repair costs that don't change over time, and no inflation. The calculations can be verified using the ASABE and Hallam et al references.









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