Shared machinery

Machinery co-op: buy-in vs hire vs own

Parameters

Shared machinery ownership — classic agro-cooperation: a $200k combine is out of reach for a small farm, at 10 farms it's $20k each. Model: buy-in proportional to area + shared annual costs. Risks: seasonal queues (everyone wants it at once), co-op breakup — who keeps the machine, who pays for breakdowns. Alternative — hiring from a large farm: more per ha but no ownership risks.

Economics

Buy-in per farm
750 000 грн
Annual cost/farm
100 000 грн
Cost/ha (own)
667 грн
Hire/yr
525 000 грн
Buy-in payback
1.8 yrs