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Development of a Method for Selecting Two Wheel Drive Tractor

ABM Zahid Hossain
Scientific Officer
IWM Division, BRRI, Gazipur-1701

MGK Bhuiyan
Senior Scientific Officer
IWM Division, BRRI, Gazipur-1701

MA Hossen
Scientific Officer
FMPHT Division, BRRI, Gazipur-1701

MD Huda
Senior Scientific Officer
IWM Division, BRRI, Gazipur-1701

Abstract/ Executive Summary:

A field survey was carried out during the period of January to March, 2008 with structured questionnaires. Only cost as factor for selection of two-wheel drive (2WD) tractor has been presented in the report. The annual use, total life of machines, interest, repair and maintenance as a function of life of machines; fuel consumption, labor/operator, wage, fuel and lubricant were taken as variables for costing of 2WD tractor. Break even analysis used for establishing the choice between ownership and hiring which is calculated by the formula, cost ratio = [Fixed cost/(TCHR - Variable cost)]. When this ratio is greater than unity i.e. difference between custom hire rate and variable cost is minimum as a result increased total cost then the machine can be used as a hiring system. On the other hand if this ratio is less than unity and the difference between custom hire rate and variable cost is maximum consequently decreased total cost then it can be used as an owning system. An exponential relationship was found between remaining farm value and cumulative annual use of the 2WD tractors with a coefficient of -0.0004.

Keywords: Fixed Cost, Variable Cost, Totat Cost, Break even ratio, Tractor custom hire rate (TCHR)

Location: Sutiakhali and Kapasia of Mymensingh and Gazipur districts

Start Date: 00-01-2008

End Date: 00-03-2008

Program Area: Farm Mechanization

Commodity: Performance evaluation

Objectives:

1. To evaluate the different cost involvement in power tiller operation and

2. To calculate break even ratio for various custom hire rates existing in the locality.

Methodology:

A field study was conducted at Sutiakhali and Kapasia of Mymensingh and Gazipur districts, respectively. Data were collected from two types of farmers. First type includes the farmers who have a 2WD tractor (Power tiller) for agricultural use and another type who hired a 2WD tractor for the same activities. An investigation was also conducted in the agricultural machinery market at Mymensingh and Gazipur to collect some relevant data on power tiller. This study summarizes the data collected during field survey. Ownership costs, Depreciation, Interest, Taxes, insurance and housing (TIH), Operating costs, Repairs and maintenance, Fuel, Labor/Operator, Break Even ratio were discussed in this study.

Source of Information: Eco-friendly Agril. J. 3 (3): 154-158, 2010 (March)

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The method presented in this report is best used as a guide for taking decision when a 2WD tractor will be purchased or hired on the basis of total cost. When the ratio of fixed cost and differences of custom hire rate and variable cost is greater than unity then it is advisable to hire a machine and when the ratio is less than unity then it is suitable to own a machine. A general empirical model for calculating the remaining farm value of 2WD tractor is proposed. This is an exponential model (decreasing type) with a coefficient of -0.0004 for the 2WD tractor.

Knowledge Management: Journal