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Machinery costs on tillage farms and the development of decision support systems for machinery investments/use on farms.
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1999-09-01
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Forristal, P.D., Machinery costs on tillage farms and the development of decision support systems for machinery investments/use on farms, End of Project Reports, Teagasc, 1999.
Abstract
Costs and benefits associated with the use of farm machinery are difficult to
calculate. A research programme was established to highlight the area of machinery
costs and to provide information on which to base mechanisation decisions.
A machinery cost survey was the central part of the programme which collected
detailed machinery cost information from 40 arable farms over a period of three
years. Costing methods were developed to provide an annual per-hectare cost for
each machine over its ownership period. An average annual machinery cost figure of
£194/ha, excluding labour, was recorded. Costs varied from £93/ha to £340/ha
between farms. Depreciation and interest accounted for almost 60% of the total costs
figure.
Larger farms (>160 ha) had lower costs and less cost variation than smaller- and
medium-sized farms. They were more machinery efficient, with lower levels of
machinery investment per hectare. Smaller- and medium-sized farms had much
greater cost variation with many farms being over-mechanised, resulting in excessive
machinery costs. The importance of selecting an appropriate mechanisation policy
for individual farm situations was evident.
Using information from the survey to select appropriate costing methodology from
other research, a simple cost-prediction computer program was developed. This
allows costs for an individual machine at any use level to be estimated. This program
was used to evaluate various mechanisation options on 40, 100 and 240 ha farms.
The program was then redeveloped for use by the advisory service. It is a decisionsupport
type program which requires input from a trained operator with experience of
mechanisation. It should prove useful in determining farm mechanisation policies
against a background of changing mechanisation technology, farm labour supply and
potential price-support reductions.