Increasingly larger machines, new technology, higher prices for parts, and higher energy prices have caused farm machinery and power costs to rise in recent years. This publication illustrates the calculations needed to accurately estimate the costs of owning and operating farm machinery with a specific tractor example.

Includes a worksheet for estimating total operating cost (repair, fuel, and labor) and total ownership cost (depreciation, taxes, interest, insurance, and housing) associated with a machine during its lifetime.