Farm Power & Machinery Management 3(2+1)

Lesson 14. Solved examples

Given: 

            Price of tractor                                               = Rs. 2,50,000.00

            Price of thresher                                             = Rs. 25,000.00

            Life of tractor                                                 = 15 years

            Life of thresher                                               = 10 years

            Salvage value                                                  = 10%

            Interest rate                                                     = 15%

            Shelter & Insurance                                          = 2% of purchase price

            Price of diesel                                                  = Rs. 11/litre

            Number of labour employed with thresher          = 4

            Labour charge                                                  = Rs. 8.00/h

            Driver’s charge                                                 = Rs. 20.00/h

            Annual use of tractor                                         = 1000 h

            Annual use of thresher                                       = 200 h

Output of thresher                                             = 800 kg/h

Depreciation                                                      = Straight line method

Solution:   a)  Tractor

Total fixed cost  =  15.00 + 20.63 + 5.00    =   Rs. 40.62/h

Repair & maintenance cost

For Tractor                TAR = 0.12 (X)^1.5

Fuel Consumption  =  LCF x RHP x SFC/1000  =  0.6 x 25 x 210/1000  = 3.15 l/h

Fuel cost  =  3.15 x 11  =  Rs. 34.65/h

Oil cost    =  0.20 x 34.65  =  Rs. 6.93/h

Driver’s charge  =  Rs. 20.00/h

Total variable cost  =  2.83 + 34.65 + 6.93 + 20.00  =  Rs. 64.41/h

Total cost of operating the tractor = 40.62 + 64.41  =  Rs. 105.03/h

(b) Thresher 

Repair & maintenance cost

For thresher                             TAR  =  0.159 (X)^1.4

                                                                  200 x 100

                                                X       =     -------------  =  10%

                                                                   10 x 200

TAR   =  0.159 (10)1.4 = 25.12% of average purchase price

          =  Rs. 17.27/h

Labour charge     =  4 x 8  =  Rs. 32.00/h

Total cost of operating the thresher = 105.03 + 11.25 + 10.31 + 2.50 + 17.27 + 32.00

   =  Rs. 178.36/h

                                                   178.36 x 1000

Cost of operation/tonne   =        ---------------------  =  Rs. 222.95

                                                                      800     

 

Example: A farmer purchased a 45 hp tractor at a price of Rs. 350,000.00 and a 3-bottom mould board plough with 30 cm bottom width at Rs. 15000.00. The draught requirement is 18000 kgf at 3.0 km/h in a clay-loam soil. Calculate:

i) Area covered per day of 8 hours

ii) Cost of ploughing per hectare and per hour

Make necessary assumptions.

Given:

            Price of tractor (P)      = Rs. 350000.00

            Price of plough           = Rs. 15000.00

            Width of plough (w)   = 3 x 0.3          = 0.9 m

            Speed of tractor (S)    = 3.0 km/h

Assumptions:

            Life of tractor (L)                   = 15 years

            Life of plough                         = 15 years

            Annual use of tractor              = 1000 h

            Annual use of plough              = 200 h

            Field efficiency of plough        = 60%

            Interest rate (i)                       = 12%

            Salvage value (S)                   = 10% of purchase price

Cost calculations:

Tractor

Tax, Shelter & Insurance = (2% of purchase price)/1000       = 0.02 x 350000/1000

                                                                                                    = Rs. 7.00/h

Total fixed cost = 21.00 + 23.10 + 7.00 = Rs. 51.10/h

Variable Cost

Repair & maintenance TAR = 0.12 (X)^1.5

                                                        Yearly use x 100        1000 x 100          

                                                X   = ----------------------- = ---------------- = 6.67%

                                                            Total life                  15 x 1000

            TAR = 0.12 (X)^1.5 

                    = 0.12 (6.67)^1.5     = 2.067% of average purchase price

                    = (2.067)/100 x (350000 + 35000)/2      = Rs. 3979/year

                    = 3979/1000 = Rs. 3.98/h            

Fuel consumption        = LCF x RHP x SFC/1000

                                       = 0.6 x 45 x  210/1000            = 5.67 l/h

Prevailing diesel rate   = Rs. 16.50/l

Fuel cost                   = 5.67 x 16.50 = Rs. 93.56/h

Oil cost                     = 0.20 x 93.56 = Rs. 18.71/h

Labour cost               = Prevailing operator’s charge            = Rs. 20.00/h

Total variable cost      = 3.98 + 93.56 + 18.71 + 20.00          = Rs. 136.25/h

Total cost of operation of tractor        = 51.10 + 136.25         = Rs. 187.35

Mouldboard plough

Fixed Cost

Depreciation    = (15000 – 1500)/(15 x 200)   = Rs. 4.50/h

Interest            = (15000 + 1500)/2 x 0.12/200     = Rs. 4.95/h

Tax, shelter etc.    = 2% of purchase price = 0.02 x 15000/200 = Rs. 1.50/h

Total fixed cost = 4.50 + 4.95 + 1.50 = Rs. 10.95/h

Variable cost

Repair & maintenance cost TAR = 0.301 (X)^1.3        

            X   = (200 x 100)/(15 x 200) =            6.67%

            TAR = 0.301 (6.67)^1.3    = 0.301 x 11.78

  = 3.55% of average purchase price

  = 0.0355 x (15000 + 1500)/2        

  = Rs. 292.88/year 

  = Rs. 1.46/h

Fuel cost          = 0 (Taken with tractor)

Oil cost            = 0 (Taken with tractor)

Labour cost     = 0 (Labour cost is considered here only if extra labour other than tractor operator is employed)

Total cost        = 10.95 + 1.46 = Rs. 12.41/h

Cost of ploughing       = 187.35 + 12.41         = Rs. 199.76/h

Field capacity of plough         = 0.162 ha/h

Cost of ploughing/ha  = 199.76/0.162            = Rs. 1233.08  = Rs. 1233/- per ha