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Frequent information updates for agricultural audiences

Costs of Operation with higher diesel fuel

Posted by John Fulton -

We are still operating off of cost of operation sheets from 2006, but what are the ramifications of $3.50 diesel fuel? The 2006 set of rates used a fuel cost of $2.50 per gallon, and now we are in that $3.50 ballpark.

Tillage rates such as a chisel plow we would add $1.33 per acre for the extra fuel cost. Other increases would include $2.36 per acre for moldboard plow, $1.64 per acre for a disk/chisel, and $.73 for a tandem disk. Annhydrous ammonia application would have a $.61 per acre increase. This works out to about a 35% increase in the breakout category for fuel and lube for all the rates.

The original rates at $2.50 diesel fuel are copied here http://web.extension.uiuc.edu/logan/agnews/i2966_601.html#4

The 2008 custom rate survey from Iowa is located here http://www.extension.iastate.edu/publications/FM1698.pdf

Remember that Iowa used an actual charged rate survey, while Illinois has traditionally calculated the cost of the operation for the machinery owner.



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