An example of financial benefits of composting manure for the horse industry

1. How YOUR Ranch, LLC can profit by Composting, Recycling
Bedding, Saving Disposal Costs, and Selling Compost
Yellow is for input
18 horses in Composter Reduces Volume and Produces
stalls Bedding and Saleable Compost
cu yd
0.5 new/stall 0.4 composter reduces waste volume
screened composter output is
0.6 bedding
Cost of Shavings screened composter output is
0.4 compost
yards per
40 month 722.7 cu yd waste/year
$744 per month 433.62 cu yds./yr. post-composter
deliveries
12 per year 260.17 cu yds. superior bedding/year
$8,928 per year 173.45 cu yds saleable compost/year
Waste Annual Savings
cu yd per
0.11 stall/day 0.5 reduction in new shavings
cu yd
723 waste/year $4,464 saved per year on shavings
cu yd per
2 day ios $1,200 saved per year on disposal
same as
Disposal Costs purchase $0 saved per year (or more) in fines
$100 month * $5,664 Total Annual Savings
waste
$1,200 cost/year
*based on
fuel only Increased Income
Fines $20 per cu yd compost
$0 per infraction $5,781.60 compost income per year
Annual
Costs, to Annual Savings + Income
$10,128 Reduce $11,446
Income
Return On is figured from
Investment here as Operations divided by Invested Assets
cost
reductions
plus new
income

2. Investment
Costs These costs are estimated at the time of the conference. NO CONTRACT IS OFFERED OR IMPLIED.
Earth Flow
11 5 cu yards/day
$49,975 estimated Purchase price
$9,500 other equipment for recycling shavings
$1,484.25 Maintenance annually 2% of capital
$1,000 Shipping
per day Electricity
Sales Tax
Installation
$1,895 Option 1 extended warranty
$2,250 Option 2 extended maintenance
$ 61,026 first-year cost of 1 Earth Flow 11
$65,171 first year cost of Earth Flow 11 with options
1.00 Earth Flow 11 needed
$61,026 first year cost of Earth Flow 11
15 years lifespan
$72,739 15-year cost of Earth Flow 11
ROI on
System 0
$11,446 Yearly Income from Operations, Saved + Sold
$171,684 15-year Income
236% Return on Investment
Break
Even
6.36 years
horses/cu
9 yard/day
amount made to
spend on new
cu yd one in 8.8 years
5 max/day/CT40 $100,721.28 left of life span
horses
45 max/CT40

3. Collective Site Cost Model
Assumptions:
25% Haul in Horse Waste 75% Container Occupancy
75% Contract Horse Waste 3$ Tipping Fee Haul In per Yard
15% Growth Market Share/ Market Growth $50 Monthly Rental Fee Container
33% Reduction through Composting $5 Finished Compost Sale Price per Yard
Income Contract based on 30 yard container, Assumes no increase of fees or sale price
$200 per pick up compost over 10 years
Years 1 2 3 4 5
Number of Horses Haul ins 1,000 1,150 1,323 1,521 1,749
Volume Waste Haul ins 74 85 98 113 129
Volume after Reduction Composting 44 51 59 68 78
Yearly Volume 16,206 18,637 21,432 24,647 28,344
Number of Contract Horses 3,000 3,450 3,968 4,563 5,247
Volume Waste Contract Horses 222 255 294 338 388
Volume after Reduction Composting 133 153 176 203 233
Yearly Volume 48,618 55,911 64,297 73,942 85,033
Total Number of Horses 4,000 4,600 5,290 6,084 6,996
Total Yearly Volume In 296 340 391 450 518
Total Yearly Volume Out 222 255 294 338 388
Income
Income Container Rental $33,750 $42,750 $51,750 $60,750 $69,750
Income Haul ins $48,618 $55,911 $64,297 $73,942 $85,033
Income Contract Horses $540,200 $621,230 $714,415 $821,577 $944,813
Income Sale of Compost $324,120 $372,738 $428,649 $492,946 $566,888
Gross Income $946,688 $1,092,629 $1,259,111 $1,449,215 $1,666,484
Capital Costs
Site Capital + Financing Cost $78,257 $78,257 $78,257 $78,257 $78,257
Site Capital + Financing Cost $78,257 $78,257 $78,257 $78,257 $78,257

4. Support Equipment and Financing Phase One Phase Two
Truck $110,000 $10,598 $110,000 $110,000
Mixer $75,000 $7,226
Trommel Screen $85,000 $8,189
Front End Loader $120,000 $11,561 $120,000 $120,000
Containers $225,000 $21,677 $60,000 $60,000 $60,000 $60,000
ASP Pad & Aeration System $450,000 $29,273 $450,000
Equipment Cost $1,065,000
Yearly Payment Principle, Interest+Cash
expenditure $59,251 $119,251 $129,848 $141,409 $192,841
Operating Cost
Labor $129,416 $142,358 $156,593 $172,253 $189,478
Insurance and overhead $69,500 $76,450 $84,095 $92,505 $101,755
Electrical and Utilities $71,743 $78,917 $86,809 $95,490 $105,039
Fuel $171,600 $188,760 $207,636 $228,400 $251,240
Maintenance $23,750 $26,125 $28,738 $31,611 $34,772
Total Operating Cost $466,009 $512,610 $563,871 $620,258 $682,284
Total Cost $603,517 $710,117 $771,976 $839,924 $953,382
Net Income $343,171 $382,511 $487,134 $609,290 $713,102