Sprayer EconomicsGary Schnitkeyschnitke@uiuc.eduUniversity of Illinois

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Outline

Estimate costs of per acre sprayer operations for inclusion on farmdoc

Evaluate for four situations

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Custom Rate SurveysType Avg. RangeIowa, 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)

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Situations EvaluatedPull-type, well-equipped, 90 ft boom

Pull-type, economical, 40 ft boom

Self-propelled, High boy, 90 ft boom

Self-propelled, Coupe, 60 ft boom

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Tendering Costs$50 per hour for truck and labor

Acre/hr Cost/acrePull-type, well equip 50$1.00 Pull-type, economical 23 2.17Self-prop, high crop 50 1.00Self-Prop, coupe 41 1.21

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Pull-Type SprayerWell Equipped

$25,000 purchase price90 ft boomHold 10 years (sell for $5,200)$1.50 fuel price, 7% interest rate, $13.50 labor priceCovers about 50 acres per hour

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Acres per Hour

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

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Tractors Charges (155 HP)Based on Per Hour Costs Per YearPer 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 $58.51From Machinery Cost Estimates on farmdoc

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Per Hour Tractor Cost by HP

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Pull Type Sprayer (4,000 acres)Costs per Acre Sprayer Tractor TotalDepreciation .50 .31 .81Interest .21 .24 .45Repairs .21 .04 .25Ins + House .04 .03 .07Fuel .21 .21Labor .28 .28Total .96 1.11 2.07

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Per Acre Costs for Different AcresAcresCost1,000$4.232,000 2.773,000 2.304,000 2.075,000 1.94Holds tractor hour costs constant **No tendering costs ($1.00 per acre)

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Pull Type SprayerEconomical

$14,000 purchase price40 foot boomHold 10 years ($0 salvage value)105 HP tractor23 acres per hour (60% field efficiency)

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Per Acre Costs for Different AcresAcresCost1,000$4.192,000 3.223,000 2.904,000 2.765,000 2.69Holds tractor hour costs constant Do not include tendering costs ($2.17)

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Pull Type Sprayers, Per Acre CostsAcres90 ft. 40 ft.1,000$4.23 4.192,000 2.77 3.223,000 2.30 2.904,000 2.07 2.765,000 1.94 2.69

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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

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Self Propelled SprayerHigh Crop

$192,000 purchase price90 foot boomHigh boyHold for 10 years ($40,000 value)50 acres per hour (60% field efficiency)

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Salvage ValueWork from Kansas Statehttp://www.agmanager.info/Kastens and DhuyvetterDeveloped OwnSpray.xls to estimate costs of self-propelled machinesSalvage values:Drop 15% for each yearDrop 1% for each 100 hours

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Self Propelled, High Boy (10,000 acres)Costs per Acre Total Per AcreDepreciation 15,213 1.52Interest 6,511 .65Repairs 4,000 .40 Ins + House 1,160 .12Fuel 2,484 .23Labor 2,224 .24Total 31,920 3.16

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Per Acre Costs for Different AcresHigh Boy **AcresCost5,000$5.457,500 3.92 10,000 3.16 12,500 2.70 15,000 2.39

** No tendering costs ($1.00)

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Self Propelled SprayerSpray Coupe$91,000 purchase price60 foot boomNo tall crop abilityHold for 10 years ($19,000 value)41 acres per hour (60% field efficiency)

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Self Propelled (10,000 acres)Costs per Acre Total Per AcreDepreciation 7,207 .72Interest 3,084 .31Repairs 4,000 .40 Ins + House 550 .06Fuel 1,743 .17Labor 3,582 .36Total 20,166 2.02

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Per Acre Costs for Different AcresSpray CoupeAcresCost5,000$3.107,500 2.37 10,000 2.02 12,500 1.80 15,000 1.66 ** No tendering costs ($1.21)

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Self Propelled Sprayers, Per Acre CostsAcres High crop Coupe5,000$5.42 $3.107,500 3.92 2.37 10,000 3.16 2.02 12,500 2.70 1.80 15,000 2.39 1.66

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Why difference?

Difference due to initial costs of machine

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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