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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 

ItemCalculationAmount
Initial investmentPlease enter cost ⇒ $ 
Salvage valuePlease enter salvage value ⇒ $ 
Amount to be recoveredInitial investment - Salvage value = $ 
Interest ratePlease enter rate ⇒     %
Estimated life of the asset in yearsPlease enter years ⇒     yrs
1Capital recovery factor     
Annual recovery amountAmount to be recovered X Capital recovery factor =    $ 
Annual repair costsIf knownPlease enter if known ⇒ $ 
 If unknownEstimated at 10% of new over life of the asset = $ 
Annual interest on salvage valueSalvage value X Interest rate = $ 
Annual subscription fees (if applicable)Please enter fees ⇒ $ 
Total annual costsTotal of previous four costs = $ 

 

Input Costs by Crop:
Crop NameChemicals &
Fertilizers		Seed & Other
Inputs		Machinery &
Pre-harvest
Costs		Labor SavingsTotal Costs2Proportion 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 acreEstimated percent saved X Total costs per acre = $ 
Breakeven acreageTotal 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%.