Owned Equipment vs Contractor
Is it better to own your own farm machinery or hire a contractor? This calculator helps you decide.
Make Your Agri Flow With Our AgriFlow Web App
Field, machinery, livestock & farm compliance tools all within one app.
Discover AgriFlowKeep Your Machinery Maintained!
Record machinery servicing and manage part lists with our app.
Discover AgriFlow
Should You Own or Hire an Agricultural Contractor?
Make Informed Decisions with the Owned vs Contractor Calculator
Deciding whether to own farm machinery or hire a contractor is a critical choice for farmers aiming to optimize costs and efficiency. The Owned vs Contractor Calculator from AgriOps helps you compare the financial impact of owning equipment versus outsourcing tasks, providing clarity on ownership costs, variable costs, and contractor rates.
Why Compare Ownership vs Contractor Costs?
Understanding the full cost of owning machinery versus hiring a contractor can save you thousands annually. Ownership involves depreciation, maintenance, and fuel costs, while contractors offer flexibility but come with per-acre or per-hectare rates.
Benefits of Using the AgriOps Calculator
The owned vs contractor calculator offers key advantages for farmers and agricultural contractors:
- Detailed Cost Breakdown: Calculate ownership costs (depreciation, maintenance) and variable costs (labor, fuel) for accurate budgeting.
- Flexible Inputs: Add multiple machines and account for shared use across tasks.
- Unit Customization: Choose between acres or hectares to match your farm’s needs.
- Instant Comparison: See which option—owning or hiring—is cheaper per unit and overall.
- PDF Summaries: Download a detailed cost report to share with your financial team.
How the Calculator Works
Enter details about your machinery (purchase price, salvage value, working life, maintenance), task specifics (annual area, hours, wages, diesel usage), and contractor rates. The calculator instantly computes:
- Cost per acre or hectare for owning vs. hiring.
- Total annual costs for both options.
- Ownership costs (depreciation, maintenance) and variable costs (labor, fuel).
- A verdict on the cheaper option with potential savings.
Use the results to plan your budget or download a PDF summary for records. Pair this tool with our Machinery Finance Calculator to explore financing options or the Machinery Diesel Usage Calculator for fuel efficiency insights.
Tips for Cost-Effective Farm Management
Optimize your equipment strategy with these tips:
- Evaluate Usage: If machinery is used for multiple tasks, factor in proportional costs to reduce ownership expenses.
- Compare Contractor Rates: Shop around for competitive rates to ensure hiring is cost-effective.
- Maintain Equipment: Regular servicing (tracked via AgriFlow) extends machinery life and lowers maintenance costs.
- Plan for Scale: Larger farms may benefit from owning, while smaller operations might save by hiring contractors.
Make Your Agri Flow With Our AgriFlow Web App
Field, machinery, livestock & farm compliance tools all within one app.
Discover AgriFlow