Knowing what each field operation costs per acre is the foundation of crop budgeting. A corn farmer who pays a custom operator $22 per acre for no-till planting needs to know whether owning a planter saves money. The answer depends on how many acres you spread the fixed costs across and what your time is worth.
Field operation costs break into ownership costs (depreciation, interest, insurance, storage) and operating costs (fuel, repairs, labor). This guide covers both categories, how field efficiency affects your actual cost per acre, and when custom hiring beats ownership.
Ownership Costs: Depreciation, Interest, Insurance, Storage
Depreciation is the largest ownership cost. Farm equipment typically loses 60% to 70% of its value over 10 years. A $350,000 combine averages $21,000 to $24,500 per year in depreciation. On 1,500 acres, that is $14 to $16 per acre just for combine depreciation.
Interest cost is the opportunity cost of capital tied up. Calculate on average investment: (Purchase Price + Salvage Value) / 2 × Interest Rate. Insurance runs about 0.7% of average value, and storage about 0.7% of purchase price per year.
Total ownership costs for a combine are roughly $40,000 per year. On 1,500 acres that is $26.67 per acre. On 3,000 acres it drops to $13.33. This is why larger operations have a fundamental cost advantage.
Depreciation = (Purchase Price − Salvage Value) ÷ Economic Life
Interest = (Purchase Price + Salvage Value) ÷ 2 × Rate
Insurance = Average Value × 0.007
Storage = Purchase Price × 0.007
Total per Acre = Sum ÷ Annual Acres
Field Operation Cost-Per-Acre Calculator
Calculate the true cost per acre for any field operation. Compare owning equipment vs. custom hiring with breakeven analysis. Includes fuel, labor, wear parts, and depreciation.
Operating Costs: Fuel, Repairs, and Labor
Fuel cost depends on power requirement and field speed. A 300 HP tractor pulling a chisel plow uses 12 to 15 gallons per hour. At 18 acres per hour, fuel cost is about $2.53 per acre.
Repair costs accumulate over the machine life. ASABE Standard EP496 provides factors. A $350,000 combine needs $140,000 to $210,000 in repairs over its life, averaging $4.50 to $7.00 per acre on 1,500 acres per year.
Labor cost is often overlooked. At $25 per hour and 18 acres per hour, labor adds $1.39 per acre. For comparing ownership to custom hire, include labor at a realistic rate.
Field Efficiency and Its Impact on Cost
Field efficiency is the ratio of productive time to total time in the field. A planter at 75% efficiency has actual throughput of 13.5 acres per hour instead of 18. All per-hour costs increase by the inverse of field efficiency.
Typical efficiencies: plowing 80–85%, planting 55–70%, spraying 60–70%, combining 65–75%. Small irregular fields have lower efficiency than large rectangular fields.
Improving efficiency is one of the cheapest ways to reduce costs. Auto-steer, larger tanks, and long field runs all help. A 10% improvement on a $22/acre operation saves $2.20 per acre.
Moldboard/chisel plowing: 80–85%
Disking/cultivating: 80–85%
Planting: 55–70%
Spraying: 60–70%
Combining: 65–75%
Mowing/baling: 75–85%