Equipment Operating Costs. Repair costs are based on purchase price, annual hours of use, total hours of life,
and repair coefficients formulated by American Society of Agricultural Engineers (ASAE). Fuel and
lubrication costs are also determined by ASAE equations based on maximum Power Take Off (PTO)
horsepower, and fuel type. Prices for on-farm delivery of diesel and gasoline are $2.04 and $2.67 per gallon,
respectively. The cost includes a 2.5% local sales tax on diesel fuel and 7.5% sales tax on gasoline. Gasoline
also includes federal and state excise tax, which are refundable for on-farm use when filing your income tax.
The fuel, lube, and repair cost per acre for each operation in Table 3 is determined by multiplying the total
hourly operating cost in Table 8 for each piece of equipment used for the selected operation by the hours per
acre. Tractor time is 10% higher than implement time for a given operation to account for setup, travel and
down time. Fuel prices have fluctuated considerably and may be higher or lower on any given day.