Edwards, William M.

ISU Extension, No. PM 710 (November 2001)

Machinery and equipment are major cost items in farm businesses. Larger machines, new technology, higher prices for parts and new machinery, and higher energy prices have caused machinery and power costs to rise in recent years. However, good managers can control machinery and power costs per acre. Making smart decisions about how to acquire machinery, when to trade, and how much capacity to invest in can reduce machinery costs by as much as $25 per acre. All of these decisions require accurate estimates of the costs of owning and operating farm machinery.