Kai Walker wrote:Step 7: Figure out how many years you have to eat beans and rice to pay for all that work.
Artie Scott wrote:Travis, if you had to account for the wear and tear on your dozer, any sense as to how much the cost per acre would be, roughly speaking? For example, the IRS standard per mile for cars is around .56 cents per mile - what would be the equivalent cost per hour to run your dozer, considering depreciation, maintenance, repairs, insurance, etc..., and how many hours does it take per acre to clear?
I ask, because I have thought about buying equipment, since if I hire out I am looking at up to $35,000 for each ten acres. Adds up way too fast.
Tj Jefferson wrote:Artie, hopefully Travis can give you a more professional answer, but I figured my cost was depreciation plus fuel plus repair. Depreciation is pretty standard for equipment. I found it was quoted as $10-15/hr for wheeled skid steer, $20/hr for tracked, $25/hr for excavator. Dozer probably more like $15 or lower. Fuel is based on rpms and engine size so variable. Track skid steer with 100hp running mulcher @ 3000 rpm vs 50 hp running grapple@ 1000 rpm is 6x more. Repairs are wild cards. Most diesel engines seem to get to 2k hrs then have some issues, then really need work@ 5k. I could only afford older machines so would have low hourly cost and already depreciated, but high per hour maintenance costs not covered under depreciation.
Travis can clear a couple acres a day I expect. So say 5 hours per acre. Mixed machines means about $20/hr plus fuel plus repair. Plus his time in opportunity costs. I think that's why he can do it cheap barring repairs. I have to pay someone to drive, someone to load unload and transport, and fix. My costs are based on that. Better analysis is what he would make with the same equipment and fuel in the same time. He's in a part of Maine which is not affluent, and it makes more sense to invest in his farm. He's also learned a huge amount which makes him able to do these calculations.