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How to Estimate Custom Machinery Rates

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  • Ibendahl, Gregory A.
  • Halich, Greg
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    Abstract

    Specialization in agriculture, along with larger farm sizes and bigger equipment, has resulted in more custom machinery work being conducted on farms. Often, there is limited data about the current custom rate. The Mississippi State Budget Generator (MSBG) is a tool that uses a cost approach to allocating machinery cost on a per acre basis and can be used in situations where custom rates are not well known. When compared to actual custom work surveys, the MSBG provides rates that are lower than the survey results. One explanation is that the MSBG does not include any built-in profit.

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    File URL: http://purl.umn.edu/96427
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    Bibliographic Info

    Article provided by American Society of Farm Managers and Rural Appraisers in its journal Journal of the ASFMRA.

    Volume (Year): (2010)
    Issue (Month): ()
    Pages:

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    Handle: RePEc:ags:jasfmr:96427

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    Web page: http://portal.asfmra.org/
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    Related research

    Keywords: Agribusiness; Production Economics;

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