Thursday, January 04, 2007

Machinery Costs Rise

The University of Illinois's FBFM released it's latest machinery costs last month.

Per Acre Machinery Costs and Values on Illinois FBFM Farms,
2005 summaries of Illinois Farm Business Farm Management (FBFM) records
indicate that power costs on Illinois farms averaged $68 per acre in 2005. Power
costs contain charges for utilities ($6), repairs ($17), machine hire ($8), fuel
and oil ($16), light vehicle ($2) and machinery depreciation
($19).
Variability in Power Costs
Power costs varied considerably across
FBFM grain farms, as illustrated in Figure 1. Each dot shows an individual
farm's power cost on the vertical axis and tillable acres on the horizontal
axis. One-third of the farms had per acre power costs less than $57 per acre
while another one-third had costs higher than $74 per acre.

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