Economies of Size for Conventional Tillage and No-till Wheat Production



Table 5. Estimates of Machinery Labor, Machinery Investment, and Production Costs for

Conventional Tillage and No-till Wheat Production Systems._________________________

_______Units

Conventional

No-till

_______________________________All Farms_______________________________

Wheat Seed

$/ac

10.50

10.50

Fertilizer

$/ac

22.55

22.55

Herbicide

$/ac

0.00

11.25

Insecticide

$/ac

3.00

3.00

Custom Harvest and Hauling________

$/ac

___________20.80

20.80

____________________________320-Acre Farm____________________________

Machinery Labor

hrs/ac

1.21

0.29

Average Machinery Investment

$/ac

159.70

134.43

Interest on Operating Capital

$/ac

2.60

3.39

Fuel, Lube, and Repairs

$/ac

9.62

3.03

Custom Application Charge

$/ac

5.64

16.61

Total Operating Cost

$/ac

74.71

91.13

Machinery Fixed Cost

$/ac

34.58

27.88

Total Operating Plus Machinery Cost

$/ac

109.29

119.01

640-Acre Farm

Machinery Labor

hrs/ac

0.68

0.14

Average Machinery Investment

$/ac

127.75

106.19

Interest on Operating Capital

$/ac

2.61

3.37

Fuel, Lube, and Repairs

$/ac

9.90

2.67

Custom Application Charge

$/ac

5.64

16.61

Total Operating Cost

$/ac

75.00

90.75

Machinery Fixed Cost

$/ac

28.09

22.49

Total Operating Plus Machinery Cost

$/ac

103.09

113.24

1,280-Acre Farm

Machinery Labor

hrs/ac

0.72

0.43

Average Machinery Investment

$/ac

118.89

85.35

Interest on Operating Capital

$/ac

2.53

2.76

Fuel, Lube, and Repairs

$/ac

13.92

7.19

Custom Application Charge

$/ac

0.00

0.00

Total Operating Cost

$/ac

73.30

78.05

Machinery Fixed Cost

$/ac

25.37

17.92

Total Operating Plus Machinery Cost

$/ac

98.67

95.97

____________________________2,560-Acre Farm____________________________

Machinery Labor

hrs/ac

0.51

0.37

Average Machinery Investment

$/ac

130.90

74.93

Interest on Operating Capital

$/ac

2.61

2.89

Fuel, Lube, and Repairs

$/ac

15.47

9.73

Custom Application Charge

$/ac

0.00

0.00

Total Operating Cost

$/ac

74.93

80.72

Machinery Fixed Cost

$/ac

28.45

16.07

Total Operating Plus Machinery Cost

$/ac

__________103.38

99.79

17



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