PR - THE IMPACT OF THE OPERATIONAL LIFE ON LIFE CYCLE COSTS OF A TRACTOR

Abstract:

This paper analyzes the impact of the operational life, which is associated with the annual utilization, on the life cycle costs for an 82 kW tractor in Switzerland. Assuming that the estimated service life of 10,000 hours is completely exhausted, six operating versions are compared with an operational life between 10 and 35 years. The machinery life cycle costs are organized in the four cost positions capital costs, buildings and fees, repair and maintenance, and fuel. Applying discounting factors between 1% and 4%, we find a tremendous impact of operational life on life cycle costs showing that an additional 5 years lead to additional costs of at least 20,000 Swiss Francs, which corresponds to 45% of the annual income of a fulltime family work force on-farm. Based on the results, we recommend highlighting the importance of operational life for life cycle costs in planning material for farm management.

Keywords: agricultural machine, machinery cost, life cycle, Switzerland