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Per Unit Costs to Own and Operate Farm Machinery

  • Aaron J. Beaton (a1), Kevin C. Dhuyvetter (a1), Terry L. Kastens (a1) and Jeffery R. Williams (a1)


With increasingly thin margins and new technologies, it is important that farm managers know their cost of field operations on a per unit basis (e.g., acre, ton, bale). Accurate per unit costs give confidence when constructing enterprise budgets and evaluating new technologies, such as no-till. Custom rates are often used as a proxy for per unit costs; however, this research, using entropy and jackknife estimation procedures, found that custom rates understate total ownership and operating costs by approximately 25% for an average Kansas farm. Estimates from these models are then used to benchmark actual costs against expected cost.



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Per Unit Costs to Own and Operate Farm Machinery

  • Aaron J. Beaton (a1), Kevin C. Dhuyvetter (a1), Terry L. Kastens (a1) and Jeffery R. Williams (a1)


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