Sprayer%20Economics

1
Sprayer Economics

• Gary Schnitkey
• schnitke_at_uiuc.edu
• University of Illinois

2
Outline

• Estimate costs of per acre sprayer operations for
  inclusion on farmdoc
• Evaluate for four situations

3
(No Transcript)
4
(No Transcript)
5
(No Transcript)
6
Custom Rate Surveys

• Type Avg. Range
• Iowa, 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)

7
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

8
Tendering Costs

• 50 per hour for truck and labor
• Acre/hr Cost/acre
• Pull-type, well equip 50 1.00
• Pull-type, economical 23 2.17
• Self-prop, high crop 50 1.00
• Self-Prop, coupe 41 1.21

9
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

10
Acres per Hour

• Speed 8 miles per hr.
• x feet per mile 5,280 feet
• x boom width 90 feet
• area per acre 43,560 square feet
• The. capacity 87 acres
• x field efficiency 60
• Acres covered 52

11
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

12
Per Hour Tractor Cost by HP
13
Pull Type Sprayer (4,000 acres)Costs per Acre

• Sprayer Tractor Total
• Depreciation .50 .31 .81
• Interest .21 .24 .45
• Repairs .21 .04 .25
• Ins House .04 .03 .07
• Fuel .21 .21
• Labor .28 .28
• Total .96 1.11
  2.07

14
Per Acre Costs for Different Acres

• Acres Cost
• 1,000 4.23
• 2,000 2.77
• 3,000 2.30
• 4,000 2.07
• 5,000 1.94
• Holds tractor hour costs constant
• No tendering costs (1.00 per acre)

15
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)

16
Per Acre Costs for Different Acres

• Acre s Cost
• 1,000 4.19
• 2,000 3.22
• 3,000 2.90
• 4,000 2.76
• 5,000 2.69
• Holds tractor hour costs constant
• Do not include tendering costs (2.17)

17
Pull Type Sprayers, Per Acre Costs

• Acre s 90 ft. 40 ft.
• 1,000 4.23 4.19
• 2,000 2.77 3.22
• 3,000 2.30 2.90
• 4,000 2.07 2.76
• 5,000 1.94 2.69

18
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

19
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)

20
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

21
Self Propelled, High Boy (10,000 acres)Costs per
Acre

• Total Per Acre
• Depreciation 15,213 1.52
• Interest 6,511 .65
• Repairs 4,000 .40
• Ins House 1,160 .12
• Fuel 2,484 .23
• Labor 2,224 .24
• Total 31,920 3.16

22
Per Acre Costs for Different AcresHigh Boy

• Acres Cost
• 5,000 5.45
• 7,500 3.92
• 10,000 3.16
• 12,500 2.70
• 15,000 2.39
• No tendering costs (1.00)

23
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)

24
Self Propelled (10,000 acres)Costs per Acre

• Total Per Acre
• Depreciation 7,207 .72
• Interest 3,084 .31
• Repairs 4,000 .40
• Ins House 550 .06
• Fuel 1,743 .17
• Labor 3,582 .36
• Total 20,166 2.02

25
Per Acre Costs for Different AcresSpray Coupe

• Acres Cost
• 5,000 3.10
• 7,500 2.37
• 10,000 2.02
• 12,500 1.80
• 15,000 1.66
• No tendering costs (1.21)

26
Self Propelled Sprayers, Per Acre Costs

• Acre s High crop Coupe
• 5,000 5.42 3.10
• 7,500 3.92 2.37
• 10,000 3.16 2.02
• 12,500 2.70 1.80
• 15,000 2.39 1.66

27
Why difference?

• Difference due to initial costs of machine

28
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