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Selection and economics of farm machines and equipments

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Er. Uttam Raj Timilsina(MSc.Engineering,IIT Roorkee)
Professor of Agricultural Engineering,Agriculture and Forestry University (AFU), Rampur, Chitwan, Nepal
uttamrajtimilsina@gmail.com
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Selection and economics of farm machines and equipments

  1. 1. Selection and Economics of Farm Machines and Equipments Er.Uttam Raj Timilsina(MSc.Engineering,IIT Roorkee) Professor of Agricultural Engineering,AFU uttamrajtimilsina@gmail.com, 9841684994 For Batch 2069/2070,BSc.Ag,4th semester(071/7/16- 071/10/15) Course Code:AEN-301,Farm Power and Machinery(1+1
  2. 2. Selection and Economics of Farm Machines and Equipments • Field capacity and Efficiency of farm machineries • Cost of Operation of Farm Machines-Fixed and variable costs • Feasibility of custom hiring of farm machines and equipments in Nepal
  3. 3. • Field capacity of farm machine:-  Theoretical field capacity:-It is the rate at which the machine or equipment can cover a field while performing its intended function or useful work without considering the non productive time loss such as lost time in turning at the end of field,stopping to add fuel,to add seed,fertilizer etc and quick checking and servicing the machine. It is usually measured and expressed in term of coverage Ha/hr.The factors involved in determining the field capacity are the width of useful work of machine and speed of travel .
  4. 4. • Field capacity of farm machine:-  Theoretical field capacity:-It is the rate at which the machine or equipment can cover a field while performing its intended function or useful work without considering the non productive time loss such as lost time in turning travel at the end of field ,overlapping travel, stopping to add fuel, to add seed,fertilizer etc and quick checking and servicing time the machine. It is usually measured and expressed in term of coverage area/hr.The factors involved in determining the field capacity are the width of useful work of machine and speed of travel(km/hr) .
  5. 5. Theoretical Field capacity(TFC) can be calculated as:- TFC=S*W/10 Where :- TFC=Theoretical Field Capacity(Ha/hr) S= Speed of machine(m/hr) W=Width of machine width(m) 10=factor calculated as 1Ha/1 km = 10000/1000=10
  6. 6. • Effective Field Capacity(EFC):-The EFC of a machine is an expression of the actual rate of doing work or coverage of work per unit time. The unit time taken into consideration is the actual time by reducing the time loss of nonproductive operations such as as lost time in turning travel at the end of field ,overlapping travel, stopping machine to add fuel, to add seed,fertilizer etc and quick checking and servicing time the machine etc. It is usually measured and expressed in term of coverage area per unit time(Ha/Hr).
  7. 7.  Field Efficiency or working efficiency of farm machines :- It is the ratio of EFC over TFC and multiplied by 100 .It gives the effectiveness of work of a machine .It is expressed as: FE(%)=EFC/TFC*100 EFC can also be calculated as EFC= FE/100*TFC FE is always less than 100% The field efficiency of different tractive works like plow ranges from 74-80% ,disc harrow-77-90 %,seed drill-60-78 %,mower-77-80 %,Combine harvester-63-70 %
  8. 8.  Cost of operation of Farm machines:-The operation cost of farm machine include the fixed cost and variable cost.Calculating all fixed and variable costs the operation cost of farm machines can be estimated and on the basis of that operation cost the hourly,dially,monthly rental cost as well as leasing cost can be fixed • Fixed cost generally includes- Original purchage cost,Depreciation,Interest on Investment,Taxes,Insurance,Shelter/Housing/rental • Except depreciation other fixed cost can be taken as
  9. 9. • The variable costs includes those costs which are a function of the amount of the use resulting in the production process.These are Fuel,lubricants,labor,repair and maintenance,oils etc.
  10. 10. • Depreciation:- It is of course the largest single item in the fixed cost.it is referred to as the loss in value with the passing of time.The annual rate of actual depreciation depends on the length of useful life of the machine.It is calculated by different methods as straight- line method,compound interest method,constant percentage method and estimated method.For calculating depreciation the appropriate junk or selvage value of machine is taken as 10-15 % of first cost or purchase cost of the machine.
  11. 11.  Depreciation/year=(First cost-salvage value)/years of useful life  Interest:-It is taken as bank loan interest if loan is taken(12-16%) otherwise it is taken as saving interest(3-5%) as the same money can be deposited in bank at saving interest instead of investment on buying farm machine.  Taxes:-it is taken as government tax paid in purchasing the machine-2% of first cost  Insurance:-Taken as 0.25-0.5% of the first cost  Housing:-it can be taken as 1-2 % of the first cost
  12. 12. • Variable cost:- • Labor wages or labor charges:-it is a major part of operating cost.Monthly labor wages to operate farm machines are considered as higher value of Rs.8000-10000/month • Fuel and lubricants cost:-fuel consumption- 8lit/hr and market value is taken as Rs/lit • Repairand maintenance cost:-8% of the first cost • After calculating or estimating all the cost the operation cost can be determined properly.
  13. 13. • Feasibility of custom hiring of farm machines and equipments in Nepal:-Custom hiring is defined as the hiring of men with machines to accomplish the jobs of plowing the land, seeding the crop using seed drills, harvesting and threshing the crops. Many farmers in Nepal are marginal farmers with small land holding. Due to low income ,small land holding, less and scattered volume of work in crop season, lack of technical knowledge and skills and low availability of machines in the market many farmers prefer to use machine on custom hiring for farming activities rather than investing large amount of money on farm machines.
  14. 14. • In terai belt of Nepal there are few farmers who have more land to justify economically the investment in equipment.They however may be able to own,and operate farm machines to their own land as well as to handle the hiring business or rental business to cover the farming of large community locally as rental basis.The hiring business also support to reduce the bad effect of weather and other hazards by providing time forquick harvesting of matured standing crops in farms.The use of machines for quick harvesting, threshing in time also provides the opportunity for planting another crops timely in season.Therefore there is better scope of custom hiring and leasing of farm machines rather than investing on farm machines by group of marginal farmers in Nepal.

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