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Why does a lightly used machine need a higher custom rate?

Two operators with the same combine, doing the same 160-acre job at the same speed, width, fuel price, and repair cost, can need very different per-acre rates to hit the same margin. The difference is not the job — it is how many hours the machine runs across the whole year. Ownership cost is fixed for the year; hours used per year decides how thin or thick it gets spread.

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What stays the same, what changes

The job itself doesn't change. 160 acres, 4.5 mph, a 30-foot header, 75% field efficiency, $3.85/gal fuel at 12 gal/hr, $18/hr in repairs, $24/hr labor, and a 15% target margin — identical on both machines. What differs is hours used per year: one machine runs 250 hours across the season and every customer's ground, the other only 100.

Ownership cost per hour is the fixed annual cost divided by those hours. A $28,000-a-year machine costs $112.00 an hour to own when it runs 250 hours, and $280.00 an hour — two and a half times as much — when it only runs 100. Every job that machine does then carries that higher per-hour figure for however long the job takes.

Worked example

Figure250 hrs/year100 hrs/year
Ownership cost per hour$112.00$280.00
Hours for this 160-acre job13.0 hrs13.0 hrs
Fuel cost$602.31$602.31
Repairs & maintenance$234.67$234.67
Ownership cost (this job's share)$1,460.15$3,650.37
Labor cost$312.89$312.89
Total cost$2,610.01$4,800.24
Break-even rate$16.31/ac$30.00/ac
Rate at 15% target margin$19.19/ac$35.30/ac

Fuel, repairs, and labor are identical in both columns — the field capacity, speed, and job size never changed. Only the ownership-cost line moved, and it alone is enough to push the per-acre rate up 84%. A published custom rate survey cannot see this: it reports one number per job type, not what a specific machine's annual utilization does to that number.

Common questions

Why does a lightly used machine need a higher per-acre rate for the same job?

Because annual ownership cost — depreciation, interest, insurance, and housing — is a fixed dollar figure for the year regardless of how many hours the machine actually runs. Dividing that fixed cost by fewer hours produces a higher ownership cost per hour, and that higher per-hour figure gets charged against every job in proportion to how long it takes, whether the job itself is any different or not.

How much does hours used per year actually change the rate?

On a 160-acre job with identical field speed, width, fuel, and repair costs, a machine used 250 hours a year needs about $19.19 per acre to hit a 15% margin. The same machine, same job, used only 100 hours a year needs about $35.30 per acre — 84% more — because its $28,000 annual ownership cost is spread over 150 fewer hours.

What counts toward hours used per year?

Every hour the machine runs across the whole year — your own ground and every paying customer's field work combined, not just the hours on the job you are pricing right now. A machine that also covers 400 acres of your own ground before it ever does custom work for hire has a much lower ownership cost per hour than one that only leaves the shed for a handful of custom jobs.

Is my data uploaded anywhere?

No. Every field on the calculator runs in your browser only. Nothing is sent to a server, there is no account, and nothing you type is saved anywhere — it exists only in the page while it is open. Usage counting only tallies anonymous feature events, and you can turn it off from the calculator's own page.