Repair costs occur because of routine mainte­nance, wear and tear, and accidents. Total fixed costs = $1,178 + $142 But even the finest and most dependable piece of Kubota Equipment will need service, repair, and regular maintenance. Depreciation for tax purposes is calculated quite differently from economic depreciation due to the actual decline in value of a machine. This product meets federal low lead standards. For example, if the 25-foot plow can be pulled at 4.5 miles per hour with a field efficiency of 81 percent, the estimated field capacity is: Field capacity = (25 x 4.5 x 81%) / 8.25 Costs for implements or attachments that depend on tractor power are estimated in the same way as the example tractor, except that there are no fuel, lubrication, or labor costs involved. Repair cost/hour= $50,000 / 6,000 hours This is almost 10 percent of the original cost of the tractor. AgDM Information File A3-24, Estimating Field Capacity of Farm Machines (PM 696), has typical accomplishment rates for different types and sizes of farm machines. The appropriate values in Table 1 should be mul­tiplied by the current list price of a replacement machine of equivalent size and type, even if the actual machine was or will be purchased for less than list price. 7.92 gallons/hour x $3.40/gallon = $26.93/hour. Capital recovery = (total depreciation x capital recovery factor) + (salvage value x interest rate) There is a tremendous variation in housing provid­ed for farm machinery. As an example of estimating costs for a used machine, assume you just bought a 25-foot chisel plow that was 6 years old for $16,000. 518 Farm House Lane Fuel An authentic Kubota Tractor service manual is a must-have item for both the professional and the do-it-yourself mechanic. Providing shelter, tools, and maintenance equipment for machinery will result in fewer repairs in the field and less deterioration of mechanical parts and appearance from weather­ing. $55.80 per hour. From Table 1, the expected salvage value at the end of 13 years is 31 percent of the current list price of an equivalent machine (estimated to be $40,000), or $12,400. Table 2 shows capital recovery factors for various combinations of real interest rates and economic lives. These three costs are usually much smaller than depreciation and interest, but they need to be con­sidered. Total ownership cost = $15,164 + $1,130 But age and accumulated hours of use are usually the most important factors in determining the remaining value of a machine. Property taxes on farm machinery have been phased out in Iowa, except for very large in­ventories. Before an estimate of annual depreciation can be calculated, an economic life for the machine and a salvage value at the end of the economic life need to be specified. Ownership costs (also called fixed costs) include depreciation, interest (opportunity cost), taxes, insurance, and housing and maintenance facilities. AgDM Information File A3-27, Fuel Required for Field Operations (PM 709) lists average fuel use in gallons per acre for many field operations. For the example we will assume an average interest rate of 7 percent. = $1,320 per year. = $180,000 - $46,000 The total accumulated repair costs are calculated as a percent of the current list price of the machine, since repair and maintenance costs usually change at about the same rate as new list prices. So, total accumulated repairs can be estimated to be: Accumulated repairs = 0.25 x $200,000 For the 180-hp tractor with 400 hours of annual use in the example, the salvage value after 15 years is estimated as 23 percent of the new list price: Salvage value = current list price x remaining value factor (Table 1) If a machine is purchased, all variable expenses except unpaid labor are deductible when determining income tax liability. Therefore, the secret to successful used machinery economics is to balance higher hourly repair costs against lower hourly fixed costs. If the plow is used an average of 100 hours per year: Tractor costs must be added to the implement costs to determine the combined total cost per hour of operating the machine. Labor cost is also an important consideration in comparing ownership to custom hiring. Different wage rates can be used for operations requiring different levels of operator skill. The values in Table 3 show the relationship be­tween the sum of all repair costs for a machine and the total hours of use during its lifetime, based on historical repair data. Machinery and equipment are major cost items in farm businesses. = $15.50 per hour. 0.044 x 180 horsepower = 7.92 gallons/hour To estimate average repair costs, use Table 3. All rights reserved. Surveys indicate that total lubrication costs on most farms average about 15 percent of fuel costs. Specific rules and regulations on deductible costs and depreciation are discussed in the Farmer’s Tax Guide, published by the Internal Revenue Service. = $50,000, The average repair cost per hour can be calculated by dividing the total accumulated repair cost by the total accumulated hours: Fuel costs can be estimated in two ways. Dealer discounts are assumed to reduce the actual purchase price to $180,000. After all costs have been estimated, the total ownership cost per hour can be added to the operating cost per hour to calculate total cost per hour to own and operate the machine. Without such data, though, repair costs must be estimated from average experience. Good records indicate whether a machine has had above or below average repair costs and when major overhauls may be needed. Salvage value is an estimate of the sale value of the machine at the end of its economic life. Most Internet websites and Technical Service Publications refer to these exact service manuals when answering technical questions in forums and articles. TIH = 0.01 x (purchase price + salvage value) / 2, For our tractor example, these three costs would be: CLICK HERE  (right click, save as) to download the KH36 Tractor complete service manual. In that same year, Kubota was the first tractor company to develop a repair manual in digital format for the service and repair of the Kubota front end loader and backhoe implements. The degree of me­chanical wear may cause the value of a particular machine to be somewhat above or below the aver­age value for similar machines when it is traded or sold. Would you like to see the quality of an online Kubota Manual? = $16,294 per year, If the tractor is used 400 hours per year, the total ownership per hour is: Some PTO powered farm equipment is operated in a stationary position so the operator only needs to start and stop the equipment. Tax depreciation expense is useful for calculating the tax savings that result from a machinery purchase, but should not be used to estimate true economic costs. With every repair manual containing between 600 an 900  pages, it only makes sense that this authentic factory Service Manual will pay for itself several times over the very first time you even look at it. It appeared to be clean and in good mechanical condition. Field capacity (in acres per hour) is calculated by: (width x speed x field efficiency) / 8.25. Total Operating Cost Within a local area, repair costs vary from farm to farm because of different management policies and operator skill. The economic life of a machine is the number of years over which costs are to be es­timated. However, good machinery managers can control machinery and power costs per acre. = $15,164 per year. Figure 1 shows how repair costs accumulate for two-wheel drive tractors. Those free manuals fall short of the real information and detail you will find in the authentic Kubota Factory Service Manual, or FSM for short. Average diesel fuel consumption = Farm machinery costs can be divided into two categories: annual ownership costs, which occur regardless of machine use, and operating costs, which vary directly with the amount of machine use. Average fuel consumption (in gallons per hour) for farm tractors on a year-round basis without reference to any specific implement can also be estimated with these equations: 0.060 x maximum PTO horsepower for gasoline engines Depreciation is a cost resulting from wear, obsoles­cence, and age of a machine. Total cost= $13.20 + $15.50 = $28.70 per hour. And repair costs will usually be higher because of the greater hours of accumulated use. A good rule of thumb is to use an economic life of 10 to 12 years for most farm machines and a 15-year life for tractors, unless you know you will trade sooner. The best data for estimating repair costs are records of your own past repair expenses. For states that do have property taxes on farm machinery, a cost estimate equal to 1 percent of the average value of the machine is often used. If only part of the money is borrowed, an average of the two rates should be used. Costs for used machinery can be estimated by using the same procedure shown for new ma­chinery. This Technical Service Manual is an extremely clear and highly detailed manual, originally designed for the Shop Mechanics at the Kubota dealer. Questions? Consequently, labor costs can be estimated by mul­tiplying the labor wage rate times 1.1 or 1.2. The factors were developed from published reports of used equipment auction values, and are estimates of the average “as-is” value of a class of machines in average mechanical condition at the farm. Kubota Service Manuals are Technical Manuals that contain detailed instruction on the major repair components of your Kubota equipment. Actual market value will vary from these values depend­ing on the condition of the machine, the current market for new machines, and local preferences or dislikes for certain models. For the example, the capital recovery fac­tor for 15 years and 5 percent is .096. Fully BOOKMARKED chapters for easy navigation allowing you to identify the exact service repair procedures in the quickest time possible. A worksheet for estimating machinery costs is provided, or Decision Tools (spreadsheet calculators) are also available from the Ag Decision Maker website, including the Machinery Cost Calculator and Grain Truck or Wagon Transportation Cost Calculator. Capital recovery costs are: Capital recovery= (.155 x ($16,000 - $12,400)) + ($12,400 x .05) For over 50 years, it’s been our personal mission to offer unbeatable deals on everything you need for work or play—whether you’re out in the field or relaxing at home. The annual capital recovery cost is found by first multiplying the appropriate capital recovery factor by the dif­ference between the total depreciation, then adding the product of the interest rate and the salvage value to it. This indicates that repair costs are low early in the life of a machine, but increase rapidly as the machine accumulates more hours of operation. You already know this if you are the person responsible for repairing Kubota equipment for a shop, farm, or construction company. Figure 1 shows how repair costs accumulate for two-wheel drive tractors. Now Kubota’s innovation and design team brings you an instant download PDF file. This Water Source YHRK1NL Yard Hydrant Repair Kit is a universal repair kit for yard hydrants. Depreciation Iowa State University 260 Heady Hall The capital recovery factor for 8 years and a 5 percent real interest rate is .155 (Table 2). TIH = 0.01 x ($180,000 + $46,000) / 2 Kubota Tractors – BX Series – B Series – L Series – M Series – TLB Series, Kubota Mowers – T Series – GR Series – F Series – Z Series – ZG Series, Kubota Construction Equipment – KX Series – U Series – R Series – SVL Series – TLB Series, In recent years, Kubota has received several awards for its products, designs, and innovative features. A Factory Kubota Service Manual is the only real choice. Due to an increased demand for its B Series, M Series, and L Series Tractors, and its compact industrial engines and diesel generators, Kubota Engine America was formed in 1999 in Lincolnshire, IL (Chicago) as a subsidiary company of Kubota Corporation. This Kubota Service Manual is a “must have” for every machine, including…. The Kubota Service Manuals we have available online here are the finest standard reference for all Kubota tractor repairs. To simplify calculating TIH costs, they can be lumped together as 1 percent of the average value where property taxes are not significant. Notice the shape of the graph. Repair costs for a particular type of machine vary widely from one geographic region to another because of soil type, rocks, terrain, climate, and other conditions. Total Ownership Cost It was a well liked tractor, and there are many second-hand models still available, although given its age, care should be taken to verify mileage and condition of engine when buying. Sometimes referred to as Kubota Workshop Manual, or WSM. Known for their efficient engines and sturdy parts, KUBOTA Tractors have earned a reputation for reliability and longevity. = $40.74 per hour. Larger ma­chines, new technology, higher prices for parts and new machinery, and higher energy prices have all caused machinery and power costs to rise in recent years. The example is a 180-PTO horsepower diesel tractor with a list price of $200,000. Costs for operations involving self-propelled machines can be calculated by treating the self-propelled unit as a power unit, and the harvesting head or other attachment as an implement. It is the finest and most up-to-date Kubota workshop manual reference available. Thus, the accumulated costs from 600 to 1,400 hours can be estimated at 45 percent minus 14 percent, or 31 percent of the new list price. Lubrication It is often less than the machine’s service life because most farmers trade a machine for a dif­ferent one before it is completely worn out. The tax treatment of different methods of acquiring machine services is a major factor in evaluating machine costs. Now, using Table 3, note that the accumulated repair cost for a chisel plow after 600 hours is 14 percent of the new list price. = $558 + $620 If you misjudge the condition of the machine such that your repair costs are higher than you anticipated, or if you pay too high a price for the machine so that your fixed costs are not as low as you anticipated, the total hourly costs of a used machine may be as high or higher than those of a new machine. If insurance is not carried, the risk is assumed by the rest of the farm business. Two-wheel tractor or walking tractor (French: motoculteur, Russian: мотоблок (motoblok), German: Einachsschlepper) are generic terms understood in the US and in parts of Europe to represent a single-axle tractor, which is a tractor with one axle, self-powered and self-propelled, which can pull and power various farm … = $12,400 / 800 hours Capital recovery is the number of dollars that would have to be set aside each year to just repay the value lost due to depreciation, and pay interest costs. Those figures can be multiplied by the fuel cost per gallon to calculate the average fuel cost per acre. Repair, fuel, lubrication and labor costs are added to calculate total operating cost. The introduction of new technology or a major design change may make an older machine suddenly obsolete, causing a sharp decline in its remaining value. When purchasing a new Kubota Tractor, you are provided with a free manual to describe just the operation and service schedule for your Kubota. That should produce greater reliability in the field and a higher trade-in value. Current rates for farm machinery insurance in Iowa range from $4 to $6 per $1,000 of valuation, or about 0.5 percent of the average value. $96.54 per hour. The paper will probably get ruined anyway, so just throw it away when your work is complete! The hourly work rate or field capacity of an implement or self-propelled machine can be estimated from the effective width of the machine (in feet), its speed across the field (in miles per hour), and its field efficiency (in percent). Welcome to Orscheln Farm & Home! Your Kubota Service Manual Download contains…. Note that for tractors, combines and forage harvesters the number of hours of annual use is also considered when estimating the remaining value. A Factory Kubota Service Manual is the only real choice. What is the estimated total cost of the plow over the next 8 years? Then see how easily it can be viewed on any computer, as well as zoomed and printed. = $8.33/hour. For taxes, insurance and housing: Total depreciation = purchase price - salvage value But even the finest and most dependable piece of Kubota Equipment will need service, repair, and regular maintenance. Class 9 • Applicant must be at least 14 years of age. Making smart decisions about how to acquire machinery, when to trade, and how much capacity to invest in can reduce machinery costs as much as $50 per acre. = $12,864 + $2,300 of Science and Technology • Applicant under 18 years of age must have parental consent form. The joint costs of depreciation and interest can be calculated by using a capital recovery factor. Other publications that will help you make good machinery management decisions are: William Edwards, retired economist. If the 25-foot plow in the example can cover 11 acres per hour, the total cost per acre for disking is: Total cost per acre = $125.24 / 11 acres = $134,000. But the costs can be estimated by making a few assump­tions about machine life, annual use, and fuel and labor prices. = 11 acres per hour. The Kubota B7100 was a compact utility tractor made by Kubota in the mid-70s, and was available for sale as new until the mid-1980s. Because different size machines require different quantities of labor to accomplish such tasks as planting or harvesting, it is important to consider labor costs in machinery analysis. The Class 8 licence permits the holder to operate a farm tractor on a street or highway as well as on farmland. Labor An economic life of 15 years is selected. This Kubota Service Manual is compatible with all PC and Mac systems and is also easy to use on any smartphone, such as Android or iPhone. Total costs in the example are: Total cost = $96.54 + 28.70 = $125.24 per hour. Since you do not know for sure how many hours of accumulated use it has, you can estimate by multiplying its age (6 years) by your own expected annual use (100 hours per year), or 600 hours. Ownership cost/hour = $1,320 / 100 hours Estimating Field Capacity of Farm Machines, Grain Truck or Wagon Transportation Cost Calculator, Estimating Field Capacity of Farm Machines, Replacement Strategies for Farm Machinery. An estimated charge of 0.5 percent of the average value is sug­gested for housing costs. Works with Water Source brand yard hydrants only If you intend to keep this plow for 8 more years, the accumulated hours of use after that time will be: Accumulated hours = 600 + (100 hours/yrx 8 years) = 1,400 hours. Operating costs (also called variable costs) in­clude repairs and maintenance, fuel, lubrication, and operator labor. = ($134,000 x .096) + ($46,000 x .05) It is the amount you could expect to receive as a trade-in allowance, an estimate of the used market value if you expect to sell the machine outright, or zero if you plan to keep the machine until it is worn out. Total Cost Detailed illustrations, exploded diagrams, drawings and photos guide you through every service repair procedure. It’s really that easy. Contact Us Commissioner's Office 2 Governor Aiken Avenue Montpelier, VT 05633-5801 (802) 828-3519 24/7 Statewide Security Phone (802) 828-0777 24/7 Statewide Security Pager This publication contains a worksheet that can be used to calculate costs for a particular machine or operation. For the tractor example, total operating cost was $55.80 per hour: Total operating cost = But if you use your own capital, the rate to charge will depend on the opportunity cost for that capital elsewhere in your farm business. Examples of this type of equipment include elevators, grain augers, and silage blowers. = $142 per year = $13.20 per hour. Diagnostic, test, adjustment, theory of operation, and repair information are all explored in detailed illustrations. Compliance with Maintenance Standards Compliance with maintenance standards 5(1) In this section and in section 6 and Schedule 2, “commercial vehicle” means (a) a commercial vehicle or a combination of commercial vehicles that is registered for a gross weight of more than 4500 kilograms and that is not a bus, or (b) a bus. Using a labor value of $15.00 per hour for our tractor example: Labor cost per hour = $15.00 x 1.1= $16.50 Interest Notice the shape of the graph. For our example tractor this adds up to $16,964 per year. From the very first L200 Compact Tractor in 1969, KUBOTA Tractors have been constructing some of the finest equipment and machinery in the world. It was in 1988 that Kubota open its first manufacturing facility in The United States, Kubota Manufacturing of America, in Gainesville, GA (USA). Actual hours of labor usually exceed field machine time by 10 to 20 percent, because of travel and the time required to lubricate and service machines. Completely SEARCHABLE – so you can easily find what you are looking for. It is the world's largest construction-equipment manufacturer. Finally, total cost per hour can be divided by the hourly work rate in acres per hour or tons per hour to calculate the total cost per acre or per ton. Because the tractor in the example will be used about 400 hours per year, it will have accumulated about 6,000 hours of operation by the end of its 15-year economic life (400 hours x 15 years = 6,000 hours). The interest rate should be adjusted by subtracting the expected rate of inflation. Every conceivable technical “how to” question is answered and explained. Ames, IA 50011-1054, agdm@iastate.edu For our example we will assume a 2 percent inflation rate, so the adjusted or “real” interest rate is 5 percent. Lubrication = 0.15 x $26.93 = $4.04/hour. You will see how easy it is to download. Copyright © 1995-document.write(new Date().getFullYear()) Inflation reduces the real cost of investing capi­tal in farm machinery, however, since loans can be repaid with cheaper dollars. Illustrated diagrams are used throughout these Kubota service manuals. If you borrow money to buy a machine, the lender will determine the interest rate to charge. 50116000 Maintenance and repair services related to specific parts of vehicles 50100000 Repair, maintenance and associated services of vehicles and related equipment II.2.3) Place of performance According to Table 3, after 6,000 hours of use, total accumulated repair costs will be equal to about 25 percent of its new list price. Caterpillar Inc. (often shortened to CAT) is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network. When estimating future costs for a machine that you have already owned for several years, start with your best estimate of the current market value of the machine instead of its original pur­chase price, or use the salvage value factors in Table 1 to estimate its current value. The field efficiency is a factor that adjusts for time lost due to turning at the end of the field, overlapping, making adjustments to the machine, and filling or emptying tanks and hoppers. • Must pass vision screening (20/40 best eye). The tractor is expected to be used 400 hours per year. = $ 46,000 We have a free sample available online for download! For example, if the average amount of diesel fuel required to harvest an acre of corn silage is 3.25 gallons, at a cost of $3.40 per gallon, then the average fuel cost per acre is $11.05. = $200,000 x 23% The total accumulated repair costs are calculated as a percent of the current list price of the machine, since repair and maintenance costs usually change at about the same rate as new list prices. = $1,130 per year. All these decisions require accurate estimates of the costs of owning and operating farm machinery. Average fuel cost per hour = 641-732-5574 phone. When purchasing a new Kubota Tractor, you are provided with a free manual to describe just the operation and service schedule for your Kubota. Search for your specific Kubota Tractor Service Manual now by typing in the model in the search box at the top of the page. Therefore, once the fuel cost per hour has been estimated, you can multiply it by 0.15 to estimate total lubrication costs.