Turn your total annual machinery bill into a per-acre and per-hectare number. This is the benchmark to compare against custom-hire rates and to decide whether owning machinery pays off.
Enter annual ownership cost (depreciation, interest, insurance, taxes), annual operating cost (fuel, repairs, labor), and acres worked. The tool outputs cost per acre, per hectare, and the ownership/operating split.
✓ Expert Reviewed: This calculator and its content have been reviewed by agricultural experts. Formulas are based on standard extension service recommendations and the Farm Financial Standards Council. For site-specific advice, consult your local agronomist or extension agent.
Fill in annual ownership costs (depreciation, interest on investment, insurance, property taxes), annual operating costs (fuel, repairs, hired labor), and the acres covered each year. Click Calculate to see cost per acre and hectare.
About
Cost/acre = (Ownership + Operating) ÷ Acres. Cost/hectare = cost/acre × 2.471 (1 hectare = 2.471 acres). For a typical 800-acre grain farm with $45,000 ownership and $32,000 operating, total machinery cost is $77,000, or $96/acre ($238/ha). Common mistakes: forgetting depreciation in ownership cost, using only fuel as operating cost, and comparing across very different acreages without normalizing.
Ownership (fixed) cost = depreciation + interest on invested capital + insurance + property taxes + housing/shed costs. It is incurred regardless of use, which is why spreading it over more acres lowers cost per acre.
Often yes for low-use or specialized operations. If your calculated cost per acre is above the local custom rate, hiring is cheaper; if below, owning wins. The crossover usually happens at 300-600 hours/year per machine. Compare rates from your state's annual custom-rate survey.
Because ownership costs are fixed. Spreading depreciation, interest and insurance over 800 acres costs far less per acre than over 200 acres. This is the economics of machinery utilization — one reason larger farms are more efficient.
For grain farms, total machinery cost often lands $80-150 per acre ($200-370/ha), with ownership about 55-65% and operating 35-45%. These vary strongly by region, crop, machinery age and tillage system. No-till and strip-till lower operating costs.
For an economic (full) cost, include the opportunity cost of your own labor and capital. For a cash budget, exclude non-cash items. State clearly which basis you use — custom-rate comparisons should use economic cost, while cash-flow planning uses cash cost.