Own machine vs hiring

minimum area where buying a machine beats hiring the operation

Parameters

Machine price, UAH

Service life, years

Insurance/storage, %/yr

Own variable, UAH/ha

Hire rate, UAH/ha

Your area, ha/yr

Own variable — fuel, oil, running repairs, operator labour per hectare (see the machine-hour calculator).

Result

Purchase break-even

240,00 ha/yr

Owning is cheaper

Annual fixed costs192 000,00 UAH

Saving per ha (hire − own)800,00 UAH/ha

Owning per year402 000,00 UAH

Hiring per year450 000,00 UAH

Yearly difference48 000,00 UAH

Cost of capital (loan/leasing) and downtime risks are not included. Rule of thumb: below break-even — hire or buy cooperatively; above — owning pays back, especially with side contracting work.

About Own machine vs hiring

Own machine vs hiring — minimum area where buying a machine beats hiring the operation. Agro: Calculators for farmers and agronomists. Use our tools without registration or installing software. All calculations happen in your browser — your data is never sent to a server.