Agricultural engineering formulas in the budget generator 

 use such information in estimating fuel, repairs, machinery 

 operation, labor, and ownership costs. 



ERS computes machinery costs on a per-hour basis, and 

 budget costs reflect hours of use of each machine, which in 

 turn depend on the size of the machine and the number of 

 times it passes over the acre. Engineering performance 

 equations are used to determine the hours of machine 

 time. The theoretically estimated machinery time must be 

 adjusted for time lost in turning corners, refueling, and 

 other interruptions. Per-acre time requirements for each 

 machine are then multiplied by the number of times the 

 machine moves over the the field to estimate total hours of 

 use. 



Fuel costs for tractors are related to power takeoff (PTO) 

 horsepower, size, and fuel consumption at an assumed 55- 

 to 60-percent load rate. For other machines, ERS gauges 

 fuel consumption at the hourly rate specified for each 

 machine. The total amount of fuel used to produce a 

 commodity is the sum of all fuel used for each machine 

 based on the estimated hours of use. Prices for fuels in 

 each State, adjusted for refundable Federal and State 

 excise taxes, come iiom Agricultural Prices (11). 



ERS updates machine prices annually. The June annual 

 summary of Agricultural Prices {11) shows average prices 

 paid for some farm machinery. Prices of specialized 

 machines and prices of optional equipment, which are not 

 included in the NASS machinery price survey, are 

 supplemented by current prices obtained from major farm 

 machinery manufacturers. Hours of use and ASAE- 

 provided engineering equations determine tractor and 

 machinery repairs. 



Motor vehicle (truck and pickup) costs are included in 

 the machinery costs for fuel, lubrication, and repairs. 

 Farm operators in the COP surveys provide vehicle sizes, 

 annual mileage, and estimated hours of use, and these 

 estimates are used to determine average hours of use per 

 cropland acre. ERS estimates hourly vehicle costs and 

 multiplies them by the estimated hours of use per acre. 

 Automobile expenses are included in general overhead 

 expenses. 



Estimates of drying expenses for a few crops mirror the 

 percentage of the crop dried and the initial moisture 

 content. Estimates of the percentages of crops dried in the 

 Corn Belt, for example, come from special reports 

 published by States. Great Plains estimates require 

 consulting with university and Extension Service staff and 

 analyzing results of special drying and storage studies. 

 Annual updates include changes in fuel prices, yields, and 

 initial moisture content. Cotton ginning and wrapping 



costs are based on annual ERS studies of ginning practices 

 and costs in major producing States. 



COP survey data provide irrigation costs. In regions where 

 wells are used for irrigation, procedures for estimating 

 costs are similar to those used for machinery. Analysts 

 obtain data on average well depth, pumping rates, and type 

 of distribution system from the COP survey. Irrigation 

 equipment, power units, and distribution systems, 

 including the well, appear as part of a special irrigation 

 complement. ERS also gathers power unit, distribution 

 system, and well-drilling prices from State Extension 

 Service budgets. State irrigation data, equipment dealers, 

 and private companies. Machinery operation cost esti- 

 mates include irrigation fuel, repair, and labor costs. Costs 

 of purchased irrigation water appear as a separate item. 



Estimated livestock expenditures include labor, feed 

 (purchased and home-grown), hauling, breeding, 

 veterinary fees and medicines, fuel and lubrication, 

 machinery repairs, general farm overhead, and 

 miscellaneous items. 



Livestock operators mainly use farm-raised grains and 

 forages as the primary source of feed in most livestock- 

 producing areas. COP surveys provide data on use of 

 farm-grown and purchased feed. ERS prices farm-grown 

 forages at their variable costs of production, and it values 

 purchased forages at their market price. NASS collects 

 data on prices of baled hay to update purchased forage 

 prices. ERS updates prices for each type of farm-grown 

 feed using regionally weighted annual indexes. Purchased 

 feed usually includes commercial feed mixes, supplements, 

 and other minor feed items, but may also include forages 

 in many regions. Commodity-weighted indexes and NASS 

 price data are used to price purchased grains fed. Grain 

 grown for feed reflects market price rather than 

 production cost. Updated commercial (mixed) feeds use 

 the prices from 14-percent protein feed. 



COP surveys provide data on livestock hauling and 

 regional livestock transportation costs, and ERS analysts 

 update them between surveys using a weighted average of 

 the farm and motor supplies index (70 percent) and the 

 fuels and energy index (30 percent) as reported in 

 Agricultural Prices (II). COP surveys also collect data on 

 veterinary and medical expenses. The updating procedure 

 reflects a weighted average of the nonagricultural hourly 

 wage rate index (70 percent) and the agricultural 

 chemicals index (30 percent). 



Data on breeding fees and miscellaneous expenses also 

 come from the COP surveys. ERS updates these items 

 annually, using the "all production items" index in 

 Agricultural Prices (II). Fuel and electricity consumption 



10 



