Per Unit Costs to Own and Operate Farm Machinery
AbstractWith increasingly thin margins and new technologies, it is important that farm managers know their cost of field operations on a per unit basis (e.g., acre, ton, bale). Accurate per unit costs give confidence when constructing enterprise budgets and evaluating new technologies, such as no-till. Custom rates are often used as a proxy for per unit costs; however, this research, using entropy and jackknife estimation procedures, found that custom rates understate total ownership and operating costs by approximately 25% for an average Kansas farm. Estimates from these models are then used to benchmark actual costs against expected cost.
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Bibliographic InfoArticle provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.
Volume (Year): 37 (2005)
Issue (Month): 01 (April)
benchmark; custom rates; custom work; entropy; jackknife; machinery costs; Production Economics; Productivity Analysis; Q10; Q12; C51; C60;
Other versions of this item:
- Beaton, Aaron J. & Dhuyvetter, Kevin C. & Kastens, Terry L., 2003. "Per Unit Costs To Own And Operate Farm Machinery," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35229, Southern Agricultural Economics Association.
- Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
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