Fuel Prices and Farm Machinery Costs

William F. Lazarus, University of Minnesota Extension Economist, is known for his work in calculating farm machinery costs. In late August he updated his Farm Machinery Cost Estimate publication with $2.20 farm-level diesel fuel prices, up from $1.65 just last December. That 33% fuel price increase since the beginning of the year alone increases the tractor total cost per hour by 12% on average over all the sizes, or 9% when the combine base units are included. It increases the overall operation (implement plus power unit) total cost per acre by around 4% on average over 119 operations included within his publication. A MS Excel spread sheet is also found on his web site to estimate the impact of higher fuel coasts on specific equipment. The web site is at: http://www.apec.umn.edu/faculty/wlazarus/machinery.html.

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