Estimating Breakeven Acreages for GPS Guidance Systems

Posted November, 2008

To ensure that the results are updated after you make entries, please click the 'Calculate' button below the tables.

Equipment Name

Item		Calculation	Amount
Initial investment		Please enter cost ⇒	$
Salvage value		Please enter salvage value ⇒	$
Amount to be recovered		Initial investment - Salvage value =	$
Interest rate		Please enter rate ⇒	%
Estimated life of the asset in years		Please enter years ⇒	yrs
¹Capital recovery factor
Annual recovery amount		Amount to be recovered X Capital recovery factor =	$
Annual repair costs	If known	Please enter if known ⇒	$
	If unknown	Estimated at 10% of new over life of the asset =	$
Annual interest on salvage value		Salvage value X Interest rate =	$
Annual subscription fees (if applicable)		Please enter fees ⇒	$
Total annual costs		Total of previous four costs =	$

Input Costs by Crop:

Crop Name	Chemicals & Fertilizers	Seed & Other Inputs	Machinery & Pre-harvest Costs	Labor Savings	Total Costs	²Proportion of Farm Acreage	Average Farm Costs Per Acre
	$	$	$	$	$	%	$
	$	$	$	$	$	%	$
	$	$	$	$	$	%	$
	$	$	$	$	$	%	$
	$	$	$	$	$	%	$
	$	$	$	$	$	%	$
	$	$	$	$	$	%	$
Total						%	$
Estimated percentage of Total (line above) saved. Range = 2-7%				Please enter rate ⇒			%
Cost savings per acre				Estimated percent saved X Total costs per acre =			$
Breakeven acreage				Total annual costs (above) / Cost savings per acre =			ac
¹Capital recovery factor = i/(1-(1+i)^-n) i=interest rate n=estimated life in years
²For example, if you raise 500 acres each of corn and soybeans then the proportion would be 50% for each crop. The sum of the column must be 100%.

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