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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

The 2008 custom rate survey from Iowa is located here

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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