Context
In average, in the Walloon Region, mechanization costs represent about 30% of the total overheads in a farm (DGA, 2006). Following the analysis of agricultural accountings (DGA, 2007), the average amount per farm is 352 € per area used for agriculture (AUA). For agricultural contractors, mechanization costs are even bigger. The improvement of the competitiveness of the Walloon agriculture requires a rationalization of the mechanization costs and thus imposes an extreme rigour in case of new investment. If the choice rests on technical criteria, an analysis of the profitability of the new investment must be carried out. For this reason, the Unit “Machines and facilities”, works for several years on the calculation of running costs for agricultural equipment.Objectives
The utilization cost of agricultural equipment aims at advising professionals of an average cost price of each working hour with the different machines. It does not have anything to do with the exploitation costs. In accounting, the machines are generally paid off in 5, 6 or 7 years even though they are used for 8, 10 or even 15 years. The first objective was to develop a way to calculate the running cost. The calculation suggested takes this total utilization length into account. In the same way, the calculation of the interest cost is independent from the length of a potential loan. The developed method takes into account the followings components:- investment;
- interest of the capital ;
- taxes and insurance ;
- maintenance and fixing costs ;
- consumption.
To which we must add :
- the cost of the tractor for pulled machines ;
- the labour costs.
The different calculation parameters come from utilization norms, based on the results of observations made on the field and on surveys carried out amongst users. The precision of the cost calculation always depends on the similarity degree existing between the specific case studied and the database. The machine can work more or less regarding the previsions, break up or not, be better or less well adjusted, etc. This calculation, even though being arbitrary, allows having a quite precise idea about the opportunity of an essential purchase, the kind of equipment to choose and the price to pay for contract works, etc. Before, running costs of the main agricultural machines were published in a hand book. The latest edition (1999) was spread over 3000 people (farmers, agricultural contractors, banks …).
However, the improvement of the technology and the evolution of prices (iron, fuel…) lead to update the database more and more frequently. Considering the cost of printing a new handbook and the increase of the use of Internet among farmers, it was decided to develop an online service. The second objective is then to develop an online tool in order to calculate the running cost of agricultural machines:
- Development of the online tool with a friendly interface interactive for users.
- Update of the database (prices, technical data, fixing and maintenance costs) and addition of new machines and a list of options.
Results obtained
The calculation method was developed and the parameters taken into account in these equations are regularly updated according to the evolution of the device. More than 380 different machines form the database. The software of running costs calculation MECACOST is now available online http://mecacost.cra.wallonie.be in 4 languages and allows to calculate the running cost of one single machine but also the association of one tractor with one or two machines (with labour). This tool, easy to use, proposes first to choose the machines (number, characteristics and options).Then, the parameters useful for the calculation are showed.
However, the parameters can be changed by the user, for example the price of the machine, the annual utilization or the performance….which makes sure that the calculation is adapted to each situation.
At last, results are clearly presented with separation of the total cost between its different items: depreciation, interests, insurance, consumption, maintenance, repairs and labour). The results can also be printed.
Contribution
NonePartners
Agro-service, Fedagrim, farmersCRAW off coordinator
CRA-WFunding
- CRA-W - Walloon Agricultural Research Centre
- DGARNE
Team
