Grains Research and Development

Date: 01.09.2002

Resources Own machinery or contract?

NSW Agriculture answers the $64,000 question of whether it is cheaper for farmers to own and operate their own machinery or use a contractor. You' ll find it in Agfact Calculating machinery costs and contract rates, available from departmental officers or over the Internet on www.agric.nsw.gov.au/reader/2274.

Agfact M2.6 aims to alert farmers to the real costs of owning and operating machinery, to explain how contract rates are calculated and to assist farmers who want to contract by showing them how to calculate their costs properly. It helps farmers calculate the 'break-even' point at which owning and operating their own machines equals the contract rate. Complex issues like timeliness and quality of operations, risk of breakdown, equity, cash flow and capital tied up in machinery are also covered.