TECHNICAL REPORT
UCED 94-10
ESTIMATION OF
FEASIBILITY PARAMETERS
TO ESTABLISH AND OPERATE
A HAY PROCESSING FACILITY
IN DIAMOND VALLEY
EUREKA COUNTY, NEVADA
UNIVERSITY OF NEVADA, RENO
i
Estimation of Feasibility Parameters
to Establish and Operate
a Hay Processing Facility
in Diamond Valley
Eureka County, Nevada
Report Prepared by
Thomas R. MacDiarmid, Karl A. McArthur
John F. Balliette, Vera L. Baumann
William L. Cooper, John G. Burch
and
Thomas R. Harris
Thomas R. MacDiarmid is a Research Associate in the Department of Agricultural Economics at the University of
Nevada, Reno.
Karl A. McArthur is a Research Associate in the Department of Agricultural Economics at the University of
Nevada, Reno.
John F. Balliette is the Extension Educator with the Eureka County Cooperative Extension in Eureka, Nevada.
Vera L. Baumann is the Executive Director of the Eureka County Chamber of Commerce and Economic
Development in Council in Eureka, Nevada.
William L. Cooper is a Report Reviewer assigned to the University Center for Economic Development at the
University of Nevada, Reno.
John G. Burch is a Professor in the Department of Accounting and Computer Information Systems at the
University of Nevada, Reno.
Thomas R. Harris is a Professor in the Department of Agricultural Economics and Director of the University
Center for Economic Development at the University of Nevada, Reno.
March 1995
UNIVERSITY
OF NEVADA
RENO
The University of Nevada, Reno is an Equal Opportunity/Affirmative Action employer and does not discriminate on the basis
of race, color, religion, sex, age, creed, national origin, veteran status, physical or mental disability, and in accordance with
university policy, sexual orientation, in any program or activity it operates. The University of Nevada employs only United
States citizens and aliens lawfully authorized to work in the United States.
ii
This publication, Feasibility Parameters to Establish and Operate
a Hay Processing Facility in Diamond Valley Eureka County,
Nevada, was published by the University of Nevada Economic
Development Center. Funds for the publication were provided by
the United States Department of Commerce Economic
Development Administration under University Centers Program
contract #07-06-03262-94. Also funds for research for this project
were provided by the Eureka County Commissioners. This
publication's statements, findings, conclusions, recommendations,
and/or data represent solely the findings and views of the authors
and do not necessarily represent the views of the United States
Department of Commerce, the Economic Development
Administration, Eureka County Commissioners, University of
Nevada, or any reference sources used or quoted by this study.
Reference to research projects, programs, books, magazines, or
newspaper articles does not imply an endorsement or
recommendation by the authors unless otherwise stated.
Correspondence regarding this document should be sent to:
Thomas R. Harris, Director
University Center for Economic Development
University of Nevada, Reno
Department of Agricultural Economics
Mail Stop 204
Reno, Nevada 89557-0105
UCED
University of Nevada, Reno
Nevada Cooperative Extension
Department of Agricultural Economics
iii
Summary
An estimation of feasibility parameters to establish and operate a hay processing facility in
Diamond Valley is provided in this report. These parameters are designed to be used in a
feasibility study of an actual hay processing facility. For further study, however, these parameters
must be adapted to conform with specific facility configurations and specific marketing and
business plans.
The feasibility parameters that were investigated include hay market price, facility
capacity, facility investment cost, facility operation cost, hay processing cost, transportation
margin, and hay transportation cost. Estimates of these parameters provide answers to general
questions concerning: the hay price per ton for cubes and double-compressed bales in comparison
to standard bales; the volume of hay that a facility would process; the investment cost of land,
buildings and other improvements required to set up a facility; the investment cost for a dual
cubing system; the investment cost for a dual compressing system; the investment cost for support
equipment; the operating cost of the facility; the operating cost of each individual piece of
equipment; the total facility processing cost per ton to cube and or compress hay; the alternative
transportation modes for shipping hay; the freight rates for alternative transportation modes; and,
the destination costs of shipping hay to several regional locations. These parameters taken
together help assess the overall feasibility of a hay processing facility but do not determine the
potential feasibility associated with an actual hay processing facility.
A feasibility study of an actual hay processing facility would be required to determine the
potential associated with the given facility.
Additional tasks for this study would include:
investigation of forward contracting and participation from local hay growers; identification of a
well defined market for processed hay in terms of volume and price; consideration of a
cooperative organization, an ownership structure, and the day-to-day operation; development of a
business plan; collection of forecasted market price, operating cost, and interest rate trends;
determination of long-term, intermediate-term, and short-term debt levels; and, evaluation of
iv
financial performance using pro forma financial statements for a future accounting period of up to
ten years. Each of these tasks must be performed to determine the potential feasibility of an
actual hay processing facility.
v
1.
Introduction
The Diamond Valley area of north central Nevada is well known for the production of
premium quality hay. Hay growers in the area are interested in alternative marketing possibilities
that include cubing and double compressing their hay. Identified in this report are the feasibility
parameters to establish and operate a hay processing facility.
Background
The hay situation in Diamond Valley provides a prime example of a mature industry.
Economic growth in this farming sector has historically been fueled by acreage expansion and
technological advances which allowed increased production levels. In the Diamond Valley area,
constraints on irrigation water have curtailed the economic possibilities of acreage expansion for
increased hay production and area growers already utilize modern hay growing practices and
technology.
One possible direction for economic growth in the local hay industry is vertical integration
into value-added further-processed hay products. Marketing potential of Diamond Valley hay
may be improved by further processing into a form which allows more economic transportation,
storage, convenience, or, other benefits greater than the cost of processing.
This study is part of an on-going effort to encourage economic growth in Eureka County.
Establishing a hay processing facility in the Diamond Valley area would broaden the economic
base of the local community supplying local employment and income, and an increased tax base.
The information contained in this report is useful for analyzing the feasibility of locating a hay
cubing and or double compressing facility in the Diamond Valley area. Estimates of investment
costs, operation costs, and transportation margins are included.
The estimated feasibility
parameters provided in this study will be helpful in efforts to establish and operate a hay
processing facility in Diamond Valley.
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Hay Marketing
The fundamental relationship between the cost of producing and transporting hay to a
given market and the price that the market will bear is more important than ever before. Diamond
Valley hay growers face a static or shrinking resource base and a global marketplace. Successful
hay marketing depends on these factors:
•
the cost to grow the hay,
•
the cost of processing the hay,
•
the cost of transporting the hay to market, and
•
the market price received for hay.
In this study, the cost of growing hay includes the cost of producing, harvesting and baling
the hay into standard three wire bales. Producing and marketing hay in this form, the Diamond
Valley hay industry exhibits classic symptoms of maturity. Production costs of alfalfa and other
hay in the Diamond Valley area are well known and documented in county extension service
literature as well as individual grower's on-farm records. The potential of hay growing lands to
produce hay is fully capitalized into its valuation. There are no foreseeable changes in the cost
factors associated with local hay production which would allow for economic growth.
Processing Diamond Valley hay might offer the potential of economic growth for the local
hay industry. Processing in this study refers to further processing of hay beyond or other than
baling in standard bales. To be considered feasible, the estimated extra costs associated with
processing hay must be less than the value of the projected benefits of the processing. A normal
profit margin must exist to justify the allocation of resources to establish and operate a hay
processing facility. Processing hay into forms other than standard bales offers several potential
benefits which could make it a feasible enterprise in the Diamond Valley area.
A major limiting factor in the geographic distribution of any product is the cost of
transporting the product to the point of consumption. The cost of transporting hay from the farm
or from the processor to its final consumer will be referred to as the transportation margin. This
margin is either absorbed by the buyer in the form of higher costs, or by the seller in the form of
2
smaller profit margins. Transportation costs for standard baled hay to current markets are well
known and established. In this report, costs for transporting processed hay are examined in
relation to the costs of transporting standard bales and to the cost of processing. Advantages in
transportation costs could allow the market for local hay to expand geographically.
Hay is sold by weight. Standard baled hay is bulky relative to its weight with an average
density of about twelve and a half pounds per cubic foot. Volume constraints are approached
long before weight limits are fully realized under many of the common modes of long distance hay
transportation. This represents a loss of potential transportation efficiency in terms of cost per
unit of weight. The full potential of the various transportation modes could be realized with an
economically feasible method of reducing the volume to weight ratio of the hay.
High volume to weight ratio of standard bales also translates to high storage volume per
ton. If costs per unit of storage space are constant, per ton storage costs would decrease
proportionately with a drop in volume to weight ratio. Storage costs may be greater or less per
unit of space for hay in another more compact form however. Storage cost savings per unit of
weight may not vary proportionately with the volume reduction per unit of weight as hay is
processed.
Any cost savings gained, however, would constitute a value added and would
contribute towards covering processing costs.
Cubing and double compressing hay are two alternatives to marketing hay in standard
three wire bales. Both alternatives yield lower volume to weight ratios in the finished product as
well as other marketing advantages for local hay growers to consider.
In the cubing process, the hay is ground and compressed under extreme pressure into
cubes which vary from an inch square by one and a half inches long, to several inches long or
wide. These cubes can be shipped in bulk or in bags. Cubed hay can be easily stored and machine
fed to livestock, offering further advantages to consumers. During the cubing process it is
possible to blend extra premium grade hay with lesser grades of hay to supply a uniform product
to the buyer. This offers a further advantage to hay growers by allowing them to capture the total
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value of extra premium hay and conversely, to add value to lesser grades of hay while offering a
consistent product to buyers.
Double compressing, involves further compressing standard baled hay into smaller, more
condensed bales. The double compressed bales handle easier than standard bales and as in the
case of cubes, the increased weight to volume ratio improves transportation and storage
efficiency.
Both of these processes result in differentiated, value added products. Each of these
products has its own set of benefits and drawbacks.
The monetary value placed on these
attributes by a given feed buyer depends on many factors. Relative costs of all inputs determine
the value placed on hay and hay products by the purchaser. Labor inputs can be reduced with
handling efficiencies, land inputs can be reduced with storage efficiencies.
Transportation
efficiencies along with other value added features can allow a wider economic distribution range.
Market prices farmers receive for their hay are externally determined. Economic theory
dictates that buyers will purchase their feed requirements at the lowest possible price given all
other things being equal (ceteris paribus) such as carbohydrates, protein, and roughage. The
prices that buyers are willing to pay are determined by prices of hay available from all sources as
well as other feed substitutes and extenders.
Per ton market prices for like-quality hay in different forms vary within the same
geographic area.
This variation can be accounted for by value added features other than
transportation efficiencies such as advantages in storage and handling of the end product.
The summation of the value added in further processing the hay must be larger than the
cost of processing to be economically feasible. This would include efficiencies in transportation,
storage, and handling.
It would also include the extra value captured through blending of
different quality hays in the cubing process.
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Objectives
The focus of this study is on the feasibility of establishing and operating a hay processing
facility in the Diamond Valley area. There are many methods of analyzing investments which
generally measure the investment in terms of profitability relative to other investment options.
Profitability is a major concern. Just as growers would not have any incentive to grow hay at
market prices which will not cover their cost of production including a normal profit margin, hay
processors, be they the growers themselves or independent concerns, will not be encouraged to
operate without a normal profit margin either. The cost of further processing must be justified by
the increased unit price received over and above the unit cost of processing. Feasibility however,
also requires that the business venture be possible as well as profitable. For example, capital
requirements may be too large for local growers to handle, or the amount of hay dedicated to
further processing may not allow an economic cost of production to be maintained. This analysis
seeks to identify parameters upon which profitability and possibility hinge. Internal rates of
return, payback time-frames and other analysis can be easily done by potential investors using the
information provided in this report with their own subjective interest rates and time-frame
requirements.
2.
Feasibility Parameters
The feasibility parameters are given in seven sections. The first section shows hay market
prices. The second section addresses processing capacity. The third section involves investment
costs. Estimates of gross capital required to establish a new hay processing facility are presented
in this section. The fourth section deals with operation costs of the facility. Hay processing costs
for cubing and double compressing are then provided in the fifth section. The sixth section
presents transportation margins corresponding to different modes of transportation and a
representative selection of destinations. Finally, hay transportation costs for shipping standard
bales, cubes, and compressed bales are compared in the seventh section.
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Hay Market Price
Hay market prices for alfalfa hay are presented in Table 1. These prices are seasonal
average prices. They are presented to show a comparison between prices for hay in standard
bales versus cubes and double compressing bales. Taking the Nevada standard bale price and
comparing it to the California standard bale, cube, and compressed bale prices shows the potential
for processing hay. The Nevada standard bale price is net to the grower whereas the California
prices are on a delivered basis. Hay processing potential exists if the hay price received for cubes
and or compressed bales covers the additional cost of processing and the cost of transportation.
Facility Capacity
The facility capacity refers to the plant size, in capacity per unit of time, for the potential
hay processing facility. Often, due to economies of size, average (and marginal) per unit costs of
production will be lower at the same level of production for a plant with larger capacity than for a
plant of smaller capacity. In this scenario the economies of size are greater than the cost of
unused capacity. This suggests that it would be economically more efficient to have a relatively
larger capacity plant with idle capacity than a smaller plant being utilized to full capacity. There
are two additional benefits of excess capacity in the case of hay processing. First, there is the
benefit of timeliness. In a modern electronically linked global market place, excess plant capacity
can allow managers to respond quickly to unforeseen or transient market conditions. The second
benefit is that the economies of size allow a larger range of profitable output levels. That is to say
that in years where, due to market forces, it is beneficial to sell more hay in standard bales, the per
unit cost of processing the remainder of the hay is not overly affected and in a year where it is
beneficial to sell more hay in processed form, the extra demand can be met at an economically
efficient cost.
There exists a suitable, ready market for the bulk of Diamond Valley hay. However,
market conditions are such that possibly about thirty thousand tons of Diamond Valley hay a year
are sold at less than satisfactory price levels. Thirty thousand tons of hay per year was the bench
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mark figure for deciding on the size of individual cubing and compressing units and on the number
of individual units which would be required. It was decided that two cubing units capable of
processing from eight to ten tons per hour each and two double compressing units capable of
further compressing seven and one half tons per hour each would provide the best processing
options for the situation at hand.
Table 2 provides estimated plant capacities at various levels of operation. When the facility
cubes alfalfa hay for five hundred hours it will cube about eight thousand tons of hay. The same
amount of time compressing will process seven thousand five hundred tons of double compressed
hay. If the facility runs five hundred hours on both processes it will process about fifteen
thousand five hundred tons of hay in total. At one thousand hours of processing per year on each
process, the plant has produced thirty one thousand tons of product. Running the processes
separately one thousand hours each for a total plant time of two thousand hours is approximately
one year's worth of processing time on a single shift basis. The plant size as studied then, can
easily process the estimated thirty thousand tons of alfalfa hay for which marketing alternatives
are being sought.
The construction of a facility to cube, and or double compress hay in the Diamond Valley
requires a substantial capital investment. A substantial commitment of hay is also necessary. The
cost of processing hay must be spread over many tons in order to reach some efficient point of
operation. Identifying an economic feasibility range in terms of tons of hay processed annually
was an integral part of estimating the investment requirements and the costs of operation for a hay
cubing and or double compressing facility in the Diamond Valley area.
Facility Investment Cost
The investment cost for a cubing and or double compressing facility can be grouped into
three categories, the purchase of land plus buildings and other site improvements, the purchase of
a processing system or systems, and the purchase of necessary support equipment.
7
Representative dollar amounts required for these three investment categories can be found in
Table 3.
Land and Improvements
The investment in land and improvements may involve development of a new site or the
expansion or conversion of an existing facility. In any case, a hay processing facility involves an
investment in land and improvements. Growers or other investors who own an existing site
suitable for such a facility would be in a better position than investors who do not. The estimated
required investment in land and improvements is $624,460. Details are shown in Table 3. It is
felt that a well coordinated and detailed site specific technical engineering analysis must be done
prior to actually establishing a hay processing facility.
Hay by its very nature is a stored product. The storage function is integral to the hay
marketing process. Hay is stored either by the grower, the middle man, or the buyer until it is fed
to livestock. Inventories depend on current market prices and the perceived future prices and
availability of hay and hay products, and feed substitutes and extenders such as grain and
commodity by-products of food and fiber production. Hay inventories are also sensitive to the
relative storage costs in different locals. For instance, urban race tracks pay a premium for real
estate square footage relative to the same square footage in rural northern Nevada. Storage in
rural northern Nevada is also relatively cheaper than that in countries such as Japan. Proper
storage planning can equip hay processors to capitalize on the comparative advantage they have in
this marketing function.
Two 100' by 100' storage buildings 24' at the eaves on 6" mesh reinforced concrete floors
over 2" sand fill have been incorporated into the estimated capital requirements of the facility.
One building would be a minimum for a hay cubing facility yet may be larger than absolutely
necessary for the compressing facility alone. Two buildings would be advisable for the cubing
process alone or with the double compressing process operating under the same roof. The
estimated figures allow $117,180 each for these buildings.
8
For analysis of both processes separately and together, the processing equipment is housed
on a common slab, partially in the open and partially under cover in part of one storage building.
Estimated figures involving a cubing process either alone or in combination with a compressing
process, include both buildings. Analysis of the compressing facility alone includes only one
building. There are trade-offs to consider between amount of exposure equipment and equipment
systems have to the weather and noise, dust, and accessibility considerations. These buildings are
felt to provide a good compromise.
Storage tends to play a larger role in the marketing and processing of cubed hay than it
does with marketing and processing double compressed hay. Buyers contract months ahead of
actually taking delivery and often have agents in the field to physically examine the product they
are buying. A certain amount of storage capacity also contributes to the economic efficiency of
processing cubed hay by allowing for more efficient utilization of equipment and personnel.
The double compressing process typically requires less storage than cubing. Much of this
process is done on a just-in-time basis. It is easier and more efficient to load double compressed
hay into transportation containers and box cars as it is processed. There is about a 5% expansion
factor if it is stored. This of course translates into an increase per unit of weight in the freight
costs to market. A typical double compressing facility alone would not require as much storage
space as estimated.
The trade-offs between costs of having storage and the costs of not having storage have
been considered in this analysis. Extra storage capacity can be utilized to ensure a steady supply
of standard baled hay for processing during inclement weather for both processes. Extra space
can also be utilized in both processes to make production runs more efficient in terms of labor and
machine usage. A cubing facility might benefit from greater and more elaborate storage than
included in the estimate, yet could do with less. A double compressing facility alone could do
with a smaller less elaborate storage building than estimated. These storage figures are mid-range
for the combined process and the cubing process alone and towards the higher range of possible
costs for the double compressing facility by itself.
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The $125,000 estimate allowed for an office is a midrange figure. It is conceivable that a
portable office or a portion of the storage area might be used. Also, an existing office could be
utilized. In the case of expanding an existing hay facility the office could either be on-site or a
large portion of the office function could be done on a remote basis utilizing an established office
off-site. Regardless, there will be an investment in office space required for any hay processing
facility.
A hay processing plant will require a shop facility where repairs and minor fabrication can
be done and tools and some equipment and maintenance supplies can be safely stored. In the
estimate, $100,000 is allowed for the construction of a shop and garage building.
The cubing and further compressing systems must be installed on a concrete slab. The
slab must strong, smooth and large enough to accommodate the operation, and maintenance of
the equipment systems including the necessary support equipment. The slab as estimated is
10,000 square feet in size and will provide enough strength and room for both processing systems
and their support equipment to operate on with some cushion for spill-over functions such as
receiving hay in inclement weather and temporary storage of standard and processed bales and
cubes. The purchase price is estimated as approximately $42,000. The slab as estimated is 6"
mesh reinforced concrete on a 4" sand base.
The estimate provides for the processing slab to be skirted by a receiving area. The
paving requirements of the receiving area are less than that of the direct processing area. The
estimates provide for asphalt paving which is less durable than concrete yet more durable than
improved earth while being somewhere intermediate in price. The estimate allows for 20,000
square feet of area covered with 3" asphalt on a 6" sand base with an estimated cost of $32,600.
Depending on the site chosen and decisions made by investors, the costs of the slab and
paved receiving areas could be lower or greater. For example, for the same degree of load
carrying capacity and efficiency there may be different costs due to local soil conditions. Also
there can be trade offs between degree of surface improvement and operational costs in the form
of efficiency, level of repairs to equipment, and product losses.
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A method of weighing incoming and outgoing trucks is a necessary part of hay processing.
Included in the estimate is a $40,000 investment in a truck scale. It is possible that a scale would
be already owned by hay growers or in place nearby as part of another operation.
Not provided for in the analysis are costs of a feed analyzer and costs associated with
engineering services for construction.
Feed analysis can be provided by outside sources.
Purchase of a feed analyzer might be warranted depending on volume processed and costs of
analytical services. Facility design and site development require specialized technical skills of
mechanical and civil engineers. A detailed analysis of plant layout and site requirements would be
required before any construction could begin.
Cubing and Compressing Equipment
The cubing system itself includes two cubing units, a feeding and cube handling system, a
tub grinder to grind the standard hay bales, a cube cooler, a metal detector system to ensure that
the finished cubes are free of wire or other metal debris, two horizontal conveyors to take away
the cubes and a telescoping piler to stack the cubes into storage as well as a control panel to
operate the system. A dehydrator was not included in the estimate because the moisture content
of the hay should be low enough without further drying. The full price of this equipment system
installed is $472,756. The compressing system is comprised of two compressor units with spare
parts, a control panel, and the necessary hydraulic oil. It has a delivered and installed price of
$456,025.
Support and Miscellaneous Equipment
The two processing systems require support equipment to operate.
Some of this
equipment is common to both processes. At the heart of any hay operation using standard baled
hay is the squeeze. This piece of equipment is common to both processes and is used to unload
hay from trucks and to place it in temporary storage or to feed the processing operation. Other
facility support equipment which is used for both operations are the two pickup trucks, shop tools
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and equipment, office furnishings, a sample grinder and a computer with a printer. These again
are mid-range figures. Managers may opt to own only one pickup for instance and or some of the
equipment may already be owned. The compliment of equipment included in this study should be
viewed as a representative set up only. The possible combinations of equipment used in a hay
processing facility are varied.
Specific to the double compressing process is the forklift with a hay rack attachment. This
combination is used to remove the finished product from the processing area and load it into
containers or boxcars. In the estimated investment requirements $32,000 is allocated for a forklift
and hayrack attachment.
The cubing process has specific support equipment requirements as well. Loading and
moving bulk cubes around the facility requires a front loader with an estimated investment of
$80,000. The concrete pad on which the cubed hay is stored must be smooth and sturdy enough
to withstand the demands of this operation. In some instances, cubes can be loaded into trucks
with just the front loader. For controlled loading in tight containers a telescoping piler is more
efficient.
Since one telescoping piler is used to store cubes during processing, a second
telescoping piler costing an estimated $32,025, is included in the estimated requirements for the
hay cubing facility. One option not included in the study would be an auger action piler. For
either type of loading system the front loader is used to feed the piler which delivers the cubed hay
into containers, hopper trailers, and hopper rail cars.
Total Investment Cost
The total capital investment as estimated for both processing systems is $1,834,770. The
capital required for cubing alone is estimated at $1,346,641.
Finally the estimated capital
requirements for a compressing facility alone are $1,132,809. Table 4 provides a comparison of
the different plant options studied.
Estimated investment for both processes separately is
$2,479,450 which is $644,680 more than combining the two processes in the same plant.
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Facility Operation Cost
The estimated costs of operation for a hay processing facility include property taxes and
insurance, labor costs, and machine costs. Labor costs include compensation paid to management
and other salaried personnel as well as hourly wages paid. Machine costs are the estimated costs
associated directly with operating the cubing and compressing systems, and other individual
machines exclusive of labor and ownership costs.
Property Tax and Insurance
Table 5 shows first year taxes for real and personal property in Eureka County based on
the investment values estimated. Property taxes are considered a fixed cost of doing business.
Inflation rates, tax rates and assessed valuations of the property can all influence the actual annual
costs of taxes.
A typical annual insurance coverage has been included in the ownership costs section.
Rates vary between insurance companies and for different situations. There are options available
as to what is insured what is not and the amounts to insure for. Some insurance such as liability
insurance on motor vehicles is required by law. Insurance is an important part of business
financial planning and should not be overlooked. Specifics of the estimated insurance costs are
found in Table 6.
Labor Cost
The estimated labor costs of a hay processing facility are divided into two distinct
categories, fixed and variable. Details of estimated labor costs can be found in Table 7. Fixed
costs are associated with salaried personnel such as managers, mechanics and secretaries. In the
case of a plant manager, or mechanic, the nature of the job requires intimate knowledge of and
specialized training in the process, and machinery. It is more efficient to keep these personnel
employed all year than to lay-off during slow times and re-train new personnel A secretary is
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needed to answer the phones, and to perform other day to day office duties on a steady
continuous and business-like basis. Regardless of the amount processed these functions must be
performed.
The figures for fixed labor costs are representative within a relevant range of production.
There could be some cost variability associated with these job functions however. In the upper
end of production ranges studied, there would possibly be assistant managers, mechanic's helpers
and part-time office help.
Salaries can also vary depending on the availability of qualified
personnel.
Variable labor costs of hourly personnel are associated with jobs which require only
general rudimentary training. A larger rate of turnover in hourly personnel relative to that of
salaried employees can be economically tolerated. It should be kept in mind however, that
business continuity is no less dependent on good hourly personnel than it is on salaried personnel.
Machine Operation Cost
The direct costs associated with operating an individual machine or a system of machines
involve the cost of power to drive the machine, in either electricity or fuel costs, and repairs and
maintenance to keep the machines and components operational.
Formulas for power
requirements are well known and relatively accurate. Variability of use factors such as loading
factors and travel factors which vary with efficiency of plant layout, can cause variability in
estimating costs of these inputs.
Maintenance costs are also fairly easily estimated using
manufacturer's guidelines. The costs of repairs over time for given equipment and components
however are highly variable and difficult to accurately estimate.
Repair costs are generally estimated based on actual repair data. Estimates for the hay
processing systems found in the tables of this report relied heavily on information originating from
the equipment manufacturers themselves due to a lack of generally available data sources for
repair costs on such systems. Repair costs of other individual machines were estimated using cost
and use factors thought to reflect the actual demands of the two processes. While there is much
14
repair cost data available for equipment such as front loaders and forklifts, there is also a large
degree of variability in repair costs due to operator skill, specific job applications, degree of
loading, quality and frequency of maintenance, and environmental conditions such as weather,
pavement quality, and exposure to dust and corrosive chemicals.
The problem of estimating repair costs for processing systems and individual machines is
compounded by the fact that repair characteristics of different types of machinery behave
differently over time. Repair costs may be directly proportional to use levels or they may increase
with time and use. When proportional to use levels, repair and maintenance costs do not affect
the replacement decision for the machine or system. In such a case, the per unit costs of
ownership such as depreciation, taxes, housing, and insurance will continue to drop over time
while per unit costs of repairs and maintenance stay steady. The average cost per unit of
production then over the life of the machine will tend to decline over time with use. When costs
of repairs increase with use however, there will be some economically efficient point at which the
machine should be replaced due to rising repair costs. The optimal point at which the machine
should be replaced is where the annual per unit cost becomes larger than the total average per unit
cost, known as the accumulated costs. The costs of depreciation, and other ownership costs, and
repairs and maintenance comprise the accumulated costs of the machine. Initial annual costs are
high due to purchasing of the machine. A rising cost of repairs with use causes the annual per
unit cost to rise after reaching a minimum point. Starting at the point where annual per unit costs
exceed the average accumulated costs, the rising repair costs will begin to pull the average
accumulated costs per unit up.
Estimating machine costs is further complicated by the question of whether the repairs of a
machine or system comprise a capital investment which is depreciable or an expensible repair.
Since ownership costs are included in the analysis, this becomes more of an accounting problem.
It is imperative to financial planners to keep in mind, however, that there are trade-offs between
the costs of maintenance, cost of repairs, and investment requirements.
15
The rebuilding of a forklift for instance, is generally thought of as a capital investment not
a repair. In the case of a forklift, studies show that under typical applications, repair costs in the
seventh year run more than the sum of repair costs incurred in the first six years of use. The cost
of a "rebuilt" forklift can be up to ninety percent of its original purchase price. It doesn't matter if
a manager decides to piecemeal the repairs after the six year period or invest in rebuilding the
owned machine, a rebuilt machine, or even a new machine, costs will be incurred one way or
another. At some point the repairs will constructively replace the piece of equipment the question
of when and how to replace equipment involve efficiency. True economic efficiency will involve
factors such as relative costs and availability of machinery, parts, labor, and capital, and tax
consequences of the different alternatives. There are also questions of timeliness, employee
morale, and company image to be considered when making equipment repair, maintenance, and
replacement decisions.
For estimating repair costs the concept of a relevant range in terms of hours of life and
annual hours of use is useful. Using a forklift for an example again, the expected life of the
forklift would be about eight years using it for one eight hour shift for about two thousand annual
hours of machine use. Removing the forklift from service after six or seven years can reduce the
repair and maintenance costs anticipated in the eight year cycle by nearly fifty percent. However,
the removal would require investment in a replacement forklift. When annual hours of use are
increased by overtime or an additional shift, the service life of the forklift would be shortened and
either replacement would have to take place sooner or higher average per unit expenses would be
incurred.
The machine costs for the plant as studied include what was reasonably considered to be
the equipment necessary to operate the facility in an efficient manner. The plant includes a cubing
system, a double compressing system, and a complement of support equipment. The equipment
included is thought to be representative of a hay processing facility. Other combinations are
possible however. The costs of operating the two processing systems and the support equipment
are estimated and presented in the following tables. Costs are expressed in average annual per
16
unit costs. The cost for example of a repair anticipated in the last year of machine life will be
annualized or averaged back over the entire machine life so that the average cost for the first hour
or per ton is the same for the last.
The hourly electricity requirements for the cubing operation are listed in Table 8. Repairs
and maintenance were estimated using manufacturer's guidelines. For this system, repair costs are
assumed to be proportional to output levels within the relevant range of production. Estimated
per unit costs are based on an eight ton per hour cubing rate. The manufacturer rates the
capabilities of this system at eight to ten tons per hour. Costs per hour of plant time and per ton
of product for a range of production levels can be seen in Table 9.
The compressing system hourly electricity requirements are listed in Table 10. Estimated
costs per hour of use and per ton of processing are found in Table 11. Here, as in the case of the
cubing system, the costs are estimated to vary proportionally with the production levels. For any
relevant range this is thought to be representative.
The hay squeeze is an efficient machine for unloading trucks of baled hay from the fields
and for moving baled hay around the facility. Typically these machines are diesel powered.
Included in the estimate is a basic squeeze. Repair costs per hour of use are expected to increase
with higher use levels. Estimated costs of fuel use, and repairs and maintenance on a per hour of
processing time and per ton of hay processed are provided in Table 12. Variability in actual per
hour and per ton costs of operating a hay squeeze can be expected depending on factors such as
actual application and use, degree of loading, user skill, and working environment.
A forklift with a hayrack attachment is essential to the loading of double compressed hay
into the tight confines of boxcars and shipping containers. Table 13 provides estimates of the fuel
and oil costs as well as the costs of repairs and maintenance associated with this machine. The
forklift and hayrack are specific to the double compressing process in the analysis but this piece of
equipment can be used to feed hay into the staging area of the cubing process also. As in the case
of the hay squeeze, variability can be expected due to variability of operating circumstances.
17
Service life for the forklift was based on a seven year life at two thousand annual hours of
use adjusted to a ten year period. The effect of increased annual use on forklift replacement is
shown in Table 13. When the forklift and hayrack attachment are used more than 1,400 hours per
year, the service life is shortened accordingly from ten years or fourteen thousand total hours of
service life to nine and two thirds years of service life at fourteen thousand hours of use. The
service life of the forklift becomes seven years at two thousand hours of annual use.
Specific to the cubing process is the front loader. Expected repairs on this piece of
equipment, beyond regular maintenance are few.
However scheduled overhauls are quite
expensive and there are other parts which will need attention with increased use. The estimates in
Table 14 reflect an increasing average annual per hour cost of repairs with increased use. Fuel
and oil costs are proportional to production levels. Variability can be expected due to variable
operating circumstances.
A second telescoping piler is included in the estimate for loading cubed hay into containers
for export. This piler is separate from the telescoping piler included in the cubing system. The
use factor for this piler is low and costs are figured accordingly. Cost estimates are shown in
Table 15 and reflect increasing costs of repairs per hour of use.
The actual costs of operating the two pickup trucks will be heavily influenced by
replacement decisions. Pickups have increasing costs of repairs with increasing levels of use.
The estimated costs for the two trucks are shown in Tables 16 and 17. Repair costs will decline
as replacement and thus investment goes up. In this area management has much latitude in which
to operate.
Depreciation
Depreciation is a very real cost of ownership. Depreciation is the decrease in asset value
caused by age, obsolescence, and wear and tear on non-replaceable components of the asset.
The major component of depreciation is age therefore it is treated as a fixed cost. The actual
dollar value of depreciation is dependent on interest rates and inflation. Often the depreciation
18
allowed for tax purposes is quite different from the actual depreciation of the asset in question. In
Table 18 the depreciation shown is estimated as the average annual decline in asset value over its
assigned economic life. This is a typical straight-line depreciation schedule. Actual depreciation
can only be determined at resale time. A point to ponder is that typically, the salvage value of
fixed equipment systems covers its removal costs for a net salvage value of zero. Many complex
factors other than age are involved in determining the actual economic life of an asset. For
estimation purposes a typical economic life in years was assigned to each asset.
Hay Processing Cost
Estimated processing costs are presented in Tables 19 through 36. Costs are presented
for a cubing only facility, a compressing only facility, and for a mixed process facility capable of
doing both. For each type of facility there is a table which shows the costs per ton spread over a
range of total annual processing hours and tonnage's of production for all of the variable cost
categories, and all of the fixed cost categories except depreciation and interest. The estimated
costs per ton for all cost categories except the annual payment category are the same for all debt
level scenarios.
For each type of facility, costs for five debt load scenarios are presented. The costs
include annual loan payments based on a 9% interest rate at various down payment or original
equity percentages, and no depreciation costs. There are two loans. A land and improvement
loan is amortized for twenty years. An equipment loan is amortized for ten years. The debt loads
are 100% down payment (100% equity and zero debt) on the estimated investment requirements
for each type of facility, 70% down payment, 50% down payment, 30% down payment, and
finally no down payment (100% debt no equity) on the required investments. To reflect true
costs, depreciation and interest paid would be substituted in the place of the loan payment.
Actual depreciation can only be determined at the time of sale or trade-in, however. It is felt that
using payments as a "cost" is a more realistic way of assessing the viability of a processing facility.
The gross estimated costs for each cost category are presented for a range of various annual
19
hours of operation. Total costs of production are also presented on a per ton basis for each of the
various levels of operation.
Cubing Cost
Tables 19 through 24 provide estimates of costs associated with cubing hay in a cubing
only facility. Projected costs are subject to variability due to a variety of circumstances. Figures
in these tables are thought to be representative of this process within the context of the study as a
whole. Costs per ton vary from $67.79 per ton cubed at three hundred hours of processing time
annually and four thousand, eight hundred tons cubed with 100% financing on required facility
investment, to an estimated $13.14 per ton to process thirty two thousand tons a year at two
thousand hours of processing time with no annual payment.
Compressing Cost
Tables 25 through 30 provide estimates of double compressing costs. These costs range
from a high of $67.88 per ton at three hundred hours and four thousand five hundred tons with
100% financing to a low of $15.20 per ton at two thousand hours processing time and thirty
thousand tons of production with no annual payment.
Mixed Cubing and Compressing Cost
Cost estimates for running both processes in the same facility are presented in Tables 31
through 36. Estimated per ton costs of production for a mixed process facility vary from a high
of $87.57 at three hundred hours of total processing time, with 100% financing to a low of
$14.14 per ton at two thousand hours of total processing time with no annual payment included.
Fifty percent of the time is spent on each process (separately) for two thousand hours total
processing time, results in sixteen thousand tons of cubed hay and fifteen thousand tons of
compressed hay produced.
20
Transportation Margin
The delivered price paid by hay buyers includes transportation and other transactions and
marketing costs as well as the net price received by the grower or other seller. It does not matter
who directly pays the transportation and other transactions costs, they are still part of the final
cost of hay delivered to a buyer. Who in effect pays the larger or smaller share of these costs is
determined through buyer-seller negotiation. Transportation costs vary on a per unit basis with
the distance transported. As hay is transported further from the grower, transportation costs are
expected to grow larger. On account of this either the buyer, the seller, or both, must absorb
more of the transportation costs and conversely give up more in the way of profit margins. At
some point transportation costs will be to high and trade will not occur.
Prohibitively high transportation costs either due to high per unit per mile costs or simply
due to large distances between two areas can cancel out any absolute or comparative advantage in
hay growing that one of the regions may have over the other which would otherwise exist in the
absence of transportation costs. Conversely economic advantages may be enhanced or become
apparent with improved transportation efficiency.
Road mileage's from the Diamond Valley area to destinations representative of an
expanded hay marketing area are listed in Table 37. The distances provide a context in which to
examine the potential of transporting and selling hay across the United States, and the potential of
transporting hay to West Coast sea ports.
Hay is relatively a high bulk commodity. A primary objective of processing hay is to
lower the per ton per mile cost of transportation. For any given hay price required by growers or
other sellers of hay and hay products to make a normal profit and remain in business, a lower per
mile per ton cost of transportation geographically expands the economic marketing range for their
hay. For each transportation dollar spent per ton on standard baled hay either more processed hay
can be transported the same distance or the same amount of hay can be transported further for
that dollar.
21
Feed price differentials often exist between different geographic areas for a variety of
reasons. Increased transportation efficiencies can allow sellers to take advantage of favorable
feed price differentials which exist between locales which may not have been possible at a higher
per ton per mile cost of transportation. Simply stated, lower per ton transportation costs allow
hay sellers to seek higher prices for their hay by competing in an expanded geographic market.
When selling processed hay within the same geographic market where it was previously
sold in standard baled form, reduced costs of transportation can be expected. The transportation
savings can either be captured by the seller or passed on to the buyer. Most likely, it will be
shared in some way between the two and in reality the trucking company might also share in the
savings. In this study it was found that transportation advantages of further processed hay are not
realized over short distances. This does not rule out economically marketing the processed hay
within the current market area based on other value added features.
Transportation efficiency is not the only factor affecting the economic marketing range of
hay and hay products. Hay is a low value commodity relative to volume and weight. The
marketing range for Diamond Valley hay can be geographically expanded through value added
features other than transportation efficiencies.
For example, cubes can be machine fed to
livestock. In locales where labor is expensive relative to other inputs, livestock operations might
be willing to pay more per ton for feed to save on labor up to the point that labor savings equal
the extra (delivered) costs of the cubed hay. Relative costs of all inputs including transportation
costs, determine the economic viability and range of transporting a commodity or value added
product.
Value added other than transportation efficiency will contribute towards the
transportation margin.
In this study transportation from the field to the processing plant was not studied. This
transportation would be considered part of the cost of hay as an input into the productive process
of cubing or double compressing.
It is, however, a consideration to keep in mind when
considering the establishment of a processing facility for Diamond Valley hay.
22
Modes of Transportation
There are several modes of transportation commonly used to move hay from grower to
buyer. In this study an effort was made to quantify and qualify the benefits and drawbacks
associated with the most common modes of transporting hay and hay products for the purpose of
identifying potential market opportunities.
Included are over the road truck transport, rail
transport, sea going ship transport, and intermodal transport. Comparisons are made between the
applicable modes of transportation for standard baled alfalfa, cubed alfalfa, and double
compressed bales of alfalfa hay. Freight rates on grass hays such as timothy hay are not as well
defined in the study. All economic discussion would hold true with grass hays and with a small
amount adaptation economic parameters can be also estimated for such commodities.
The financial costs and other efficiencies vary between the different modes of
transportation and combinations of two or more modes. Dollar per ton per mile costs are
important but other factors must also be considered. Having to guarantee a given volume of
shipping over a period of time, typically a year, in order to get a favorable freight rate can increase
exposure to unfavorable market shifts and thus increases risk.
The degree of risk will be
determined by the volatility of hay and transportation prices in a given market. Timeliness is an
important factor to consider. Having to either order ahead of time or wait for rail cars or
containers can be costly in terms of efficiency. Conversely, having to load the rail cars or
containers within a certain time frame or pay demurrage costs can also have an impact on the total
efficiency of the transportation mode. The actual in transit time, the time it takes to move a load
of hay from point to point, is also an important factor to consider. Prices can change from the
time hay is shipped to when it arrives at its destination. Buyers are keenly aware of potential
market price changes. Reliability is important also. Good planning depends on reliability. These
factors vary between modes of transportation commonly used to move hay and hay products from
sellers to buyers.
Some costs of transportation are presented in Tables 38, 39, and 40. Each mode has
advantages and drawbacks. There are many variables associated with per ton transportation costs
23
of hay in various forms. Not all transportation options are applicable for all forms of hay. The
different forms of hay and hay products have different transportation requirements and objectives.
For example cubed hay does not stack on a flat bed trailer and hay is generally containerized only
for export shipment by ocean going vessel not for over the road transport. Costs and other
factors of the various modes of transport studied are discussed below. The tables are arranged so
that rates for transporting hay in standard bales, cubes, and compressed bales via different
transportation modes to a given location can be compared.
Truck Transport
Over-the-road truck freight movement is probably the most common mode of transport
for standard baled hay.
For relatively short distances this is the most efficient method of
transporting hay. In all forms of hay transport studied there is at least some over-the-road truck
movement of hay and hay products. Volume and weight limits, fuel prices, and operator costs,
combine to constrain the economic range of marketing hay utilizing this transportation mode.
Flexibility, timeliness, availability, and reliability are advantages of this transportation mode.
Loads are most often picked up directly from the stackyard and delivered to the final destination
without further transferring or handling. The trucking industry comes under regulation of the
Interstate Commerce Commission (ICC) and is a relatively free-market industry with few barriers
to entry or exit and as such is very responsive to changing transportation demands. The major
economic stumbling block to this mode of transport is a relatively high per ton per mile cost.
Over-the-road truck transport is currently the most common method of hay movement
from the Diamond Valley area to market. A large share of the hay is marketed in California via
truck transport. Specific destination areas for Diamond Valley hay are the Central Valley area
which includes Sacramento, the South Valley area which includes Hanford, Visalia, and Tulare,
and the Southern California area which includes Chino.
The hay market in these areas is
composed primarily of dairy farms requiring high quality feed for lactating cows. Feed demands
of lactating cows known as "wet cows" provide a relatively steady and reliable market for top
24
grade Diamond Valley hay. Hay of lesser grades is also produced in the Diamond Valley which is
only suitable for "dry" or non-lactating cows and horses. Relative feed prices and demands are
such that market prices for the lesser grades of hay do not make it as economical to transport it to
these areas as feed for dry cows and horses. Table 39 shows a transportation cost per ton to
these areas for standard baled hay from the Diamond Valley ranging from $44 to $50 which
includes unloading.
Standard baled hay is defined in this report as standard three wire bales. The costs of
truck transportation of all baled hay, however, is similar. Modern field baling machines are
designed with maximum truck loads in mind. Weight limits are met at legal load clearances.
Double compressed hay would offer a less bulky load, however, reducing wind resistance, which
might cause a freight rate reduction in truck transport to California markets due to fuel savings.
The main transportation advantages of double compressed hay would be in export shipments. A
representative cost for moving a container of double compressed hay from the Diamond Valley
area to the port of Oakland for export is included in Table 38.
Truck transport of cubed hay requires specialized hopper trailers. There are some savings
in that the hopper trailers are unloaded via bottom dumps. These trailers are machine loaded
either with a conveyer or with a front loader which is figured into the cost of processing. Cubed
hay can be trucked directly to consumers or to port facilities for transfer into sea going containers
for export. An investment in specialized cube handling equipment would be required of livestock
farmers wanting to buy and feed cubed hay in their operations. The use of transfer facilities near a
sea port also adds to the cost of exporting the cubed hay. For the over-the-road portion of
transport, cubed hay offers only the advantage of less loading and unloading costs in comparison
to standard baled hay. Higher per ton prices due to other value added features of cubed hay such
as potential labor savings mentioned above, or blending of different quality hays could however
cover the extra cost of processing which are not covered by increased transportation efficiencies.
Representative per ton transportation costs of cubed hay in hopper trailers to potential markets
and export facilities are listed in Table 39.
25
Rail Transport
Rail freight rates are also regulated by the Interstate Commerce Commission (ICC) and
are found in the form of published tariffs. A tariff is a fixed rate for moving a given commodity
from point to point. In the event that a tariff is not published for a given freight movement, a
tariff is created from governing rates for that specific movement. Rates for movements for which
no pre-existing tariff exists will first be given a quoted rate which later becomes the tariff. The
type of cargo, mileage, weight, bulk, and equipment required for transport, are all considered
together in the creation of a tariff. Hay and hay products are "exempt" commodities and as such
are treated favorably under ICC tariff regulations. Railroads enjoy a limited natural monopoly
market position due to the high capital requirements and other conditions which prevent easy
entry and exit of new and existing firms into and out of the industry. However, both the Union
Pacific Railroad and the Southern Pacific Railroad serve the Elko, Nevada area and prices vary
somewhat between the two.
Rail rates found in the tables are almost exclusively Union Pacific Tariffs. Rates vary
between the Union Pacific and Southern Pacific railroads. Union Pacific rates on a 50' box car are
$1,150, to "All Stations" in California. There are estimates of rates to the same general areas
furnished by the Southern Pacific. These rates vary between a high of $1,261 to Los Angeles and
a low of $956 for transport to Oakland. Shipping a 50' box car to Long Beach by Southern
Pacific is estimated to cost $1,214.
Rail transport has the advantage of low cost per ton per mile traveled. Economies of scale
are created by moving large amounts of freight over a common route at the same time.
Overcoming inertia to get a train moving or to stop, requires large amounts of energy while
maintaining a constant speed requires minimal energy in relation to the load carried.
For
efficiency, stops must be kept to a minimum. In order to create the economies necessary, freight
must be consolidated along the common routes at centralized points of loading and unloading.
Hay must be loaded onto trucks, then transported, then unloaded and then loaded into rail cars at
26
these centralized points. Access to rail transport is geographically limited to areas in close
proximity to existing rail lines. The closest rail access to Diamond Valley is in Elko, Nevada.
There are other access barriers involve with rail shipment. Access to existing sites where
cars can be "spotted"; that is, left to be loaded or unloaded, and picked up for transport, is limited.
A siding or spur for loading freight cars is quite expensive to construct and must be approved by
many parties including the railroad it will access. The cost of laying railroad track is about $70
per foot. Construction of the track portion of a loading facility would cost between $30,000 and
$80,000.
Volume constraints limit the flexibility of hay shipment by rail. Contractual agreements
involving minimum numbers of cars shipped at a time or moved per time period can be a
disadvantage of rail freight as a means of transporting hay. For economic efficiency, rail freight is
dependent on having a certain volume per stop. At centralized locations such as Elko, there may
be enough volume agglomerated from a larger geographic area to justify regular pickups and
deliveries. Car volume considerations are often written into contracts.
Unlike the situation with over-the-road trucks, the volumes required to fill individual rail
cars thus making the most of the per car rate, can be prohibitive at either end of a move to smaller
firms. For hay shippers, there first must be enough hay volume to fill a car or cars, then there
must be enough car volume to justify a stop to drop or pick up rail cars, and to also justify any
specialized loading facilities and equipment costs. For hay buyers at the receiving end of a move,
there must be enough hay demanded to justify the shipment volumes that efficient rail freight
requires as well.
Added costs for shipping and transloading hay and hay products from the Diamond Valley
area to rail cars in Elko, Nevada of ten dollars per ton have been used in the analysis. This
allowance is thought to be reasonable however it is dependent on many other factors. It takes
about two to two and a half truck loads of processed hay per rail car load. Volumes are given in
Table 41.
27
Water Transport
For export purposes, water transport on ocean going vessels is the only practical way of
transporting bulky heavy commodities such as hay. Shipping via water routes has the advantage
of low cost per mile per ton transported. The drawbacks are similar to those of rail transport.
There is limited access to ports where freight can be transferred to and from ocean going ships.
These ports are regulated but in effect there is a partial monopoly market situation in existence for
port space and services due to limited natural port locations and high capital investment
requirements to purchase and develop a port. In the arid west, water transport is not available to
sea ports or other destinations. Ocean going transport of hay requires that the hay be moved
over-the-road or via rail to the port to be loaded onto a ship.
The most common mode of water transport for hay involves utilization of sea going
containers. Hay freight rates are based on 40-foot equivalent units (FEU's) and vary dramatically.
Rates on a FEU were about $1,400 in December of 1992 for example and about $1,200 in
February 1993. These rates fell to $652 per FEU from California in August of the same year.
Quotes from American President's Line in November of 1994 were $1,183 per 40' container of
hay from California to Japan. The Agricultural Export Program of the California Department of
Agriculture stated that it cost $936 in October of 1994 to transport a 40' container from
California to Japan.
Hay, along with waste paper, and cotton, is generally considered a high volume, low rate
cargo. During weak west bound traffic conditions shipping companies compete for hay and other
high volume, low rate cargoes to fill their west bound ships.
Weak west bound shipping
conditions are attributed to seasonal imbalances between east bound trade from the Pacific rim
countries to the western U.S. and west bound trade from the U.S. West Coast to the Pacific rim
countries. This shipping situation creates a volatile rate environment for hay and hay products
destined for Japan and other Pacific rim countries.
28
The volatility of the export hay market and shipping situation can be a plus and a minus
for hay growers contemplating exporting. When shipping rates are down and prices in the pacific
rim countries for hay and hay products remain high, export of hay products can offer farmers and
or processors returns much larger than can be realized in domestic markets. It would be expected
that more U.S. hay destined for the Pacific rim will tend to bid up the domestic price while having
the opposite effect on the prices bid by Pacific rim buyers. The transience of these conditions
however, would not allow market forces to fully equalize foreign and domestic prices in
relationship to processing and transportation costs. A favorable foreign market and shipping
situation is good for all domestic producers. Those capable of reacting to a favorable foreign
market situation as it arises will benefit more than those who cannot. The same elements which
can make the foreign export marketing of hay attractive contribute to making it a risky market on
which to depend exclusively. When foreign market prices are down and shipping costs up, the
situation is reversed.
According to the American Hay Growing Association, average tons of standard baled hay
are half of the average tons of double compressed hay shipped per twenty foot or forty foot ocean
going container. Freight rates are on a container basis so this means that the ocean going portion
of freight costs would be half as much for a container of compressed baled hay as opposed to a
container of standard baled hay. Table 41 shows the capacities of various freight containers in
cubic feet and average tons per load. Actual weights per cubic foot of hay and hay products vary.
There are also weight limits on over-the-road freight which constrain weights of containerized
freight which is hauled to port by truck. When taking the cubic foot capacity information from
Table 41 with the ranges of weight per cubic foot of hay shown in Table 42 some of the possible
variation in load tonnage's can be seen. Combining this variation with the variations in shipping
costs compounds the total potential per ton variation of per ton transportation costs of exported
hay and hay products.
29
Intermodal Transport
Intermodal shipping is technically defined as shipping freight utilizing two or more modes
of transportation, as in rail, water, or over-the-road truck. When discussing intermodal transport,
"intermodal" has become known more specifically as a coordinated method of shipping
commodities from one point to another utilizing a common freight container, and two or more
modes of transportation. The common container is usually either a truck trailer or a shipping
container with no integral truck.
Under this definition of intermodal shipping, the loaded
container is transferred from one transportation mode to another and efficiency in handling is
enhanced.
When using truck trailers in conjunction with rail freight the loads are often called
"piggyback" shipments. Piggyback shipments are hauled by truck to rail "pigyards" and loaded on
special flat cars, hauled by rail to another pigyard and off-loaded to be hauled to the final
destination by truck, or possibly onto a sea going ship for export. When a non-trailer shipping
container is used, shipments are either hauled over-the-road by truck on flatbed trailers directly to
sea ports or to rail facilities to be placed on rail flat cars for further shipment to sea ports where
they are loaded onto ships for export. Transportation costs from the Diamond Valley area to the
port of Oakland for containerized cubes and double compressed hay are included in Tables 38, 39,
and 40. Due to the extra weight of a shipping container, and legal over-the-road weight limits
both in Nevada and California, these shipments can involve smaller tonnage's of hay per load than
flatbed shipments of standard baled hay.
In the analysis, piggyback freight loads are not considered.
Lifting piggyback truck
trailers onto the specially designed rail flat cars requires extremely expensive and specialized
equipment. The closest pig yards to the Diamond Valley area are in Salt Lake City, Utah and
Reno, Nevada. Loading charges at the Reno facility were around $10 per trailer via Bender
Warehousing, a private contractor. Local hauling costs, within the Reno/Sparks/Stead area are
$45 per load while longer hauls are $1.35 per mile 'round trip. At two hundred and fifty miles
each way, or five hundred miles round trip this would be a prohibitive figure of $675. The unit
30
cost of transferring a piggyback trailer to a rail car in Reno is certainly not prohibitive. However
there would not be enough volume in the Elko area to justify the investment and operation of
equipment required to run a pigyard. The machine used to load trailers onto rail flat cars at the
Reno facility was purchased used for over $1,000,000.
For intermodal transport to be
economically efficient, the savings realized from low rate per ton per mile transport and the
market price received must be great enough to offset the extra costs of handling and the costs of
specialized equipment required. In the case of piggyback freight loads the extra costs of handling
and transfer are prohibitive.
Hay Transportation Cost
If a map of concentric circles a given distance apart was drawn with the Diamond Valley
as the geographic center, the cost of over-the-road truck transportation of standard baled hay
would increase with distance from Diamond Valley. This is true for processed hay either cubed or
double compressed being shipped by truck also. When more than one mode of transport is
utilized, costs of moving the hay by truck to centralized rail or port locations must be overcome
by the per mile per ton efficiencies of the rail or ocean transportation portion of the movement.
Intermodal costs are larger than truck only costs of transportation up until this happens.
A consideration not quantified in the study would be the transfer costs incurred by the hay
buyer at the final rail or port destinations to which the hay is shipped. Such costs, assumed to be
absorbed by the buyer would be part of the total transportation margin. Differences in costs of
unloading freight shipped by the different modes could distort the relationship between shipping
costs and distance shipped. For instance for two destination points equal distances from Diamond
Valley, and having equal freight costs, high costs of unloading freight at one point and low costs
at the other would directly impact the feasibility of transportation and marketing of hay to the two
locations.
31
Standard Bales
Table 39 shows the costs per ton to ship standard baled hay. It costs $50 per ton to ship
standard baled hay to Southern California by truck, for example, and $33 per ton by rail freight.
This rail freight is exclusive of any handling and transfer costs at either end of the move while the
truck freight includes loading and unloading. Table 40 shows the cost to ship standard baled hay
to Southern California with a $10 per ton transfer and handling charge to get the hay from
Diamond Valley to Elko and to unload it from a truck and load it into a boxcar. This brings the
cost up to an estimated $43 per ton for the move. A handling and transfer cost must be absorbed
at the destination as well.
More efficiency with rail transport is evident when moving standard bales east. Table 39
shows the per ton cost of transporting hay to Memphis as $125 per ton by truck and shows only
about $54 per ton by rail exclusive of transfer and handling costs.
These figures are based on a thirty five ton load in fifty foot boxcars and forty one ton
loads in sixty foot boxcars. These are felt to be average loads. Per load rates can be found in
Table 38. Weights and volumes vary and with them the per ton costs of transportation.
Cubes
Some representative per ton costs for transporting cubed hay are also found in Table 39.
Trucking cubed hay requires specialized trailers, usually bottom dump grain hopper trailers.
Cubed hay is also shipped in ocean going cargo containers. The rates for both of these methods is
$38 per ton to the port of Oakland from Diamond Valley. Moving of cubed hay by rail to
Oakland costs $26 per ton exclusive of transfer and handling costs. Transporting cubed hay to
Memphis, Tennessee costs $67 per ton exclusive of any transfer and handling costs. Other overthe-road and rail rates per ton are also listed in Table 39. The rates found in Table 38 to Table 40
can be used to estimate overland transportation costs. Water transport rates are highly variable
and were not listed. Rates for rail hopper car shipment were based on a sixty eight ton load.
32
Compressed Bales
The cost of transporting double compressed hay to Southern California listed in Table 39
are, $21 to $23 per ton by rail exclusive of handling and transfer costs, and $50 per ton by truck
on a flatbed trailer. The truck rates are based on twenty five and a half ton loads. The cost of
transporting double compressed hay to Memphis Tennessee by truck is $125 per ton.
To
transport the double compressed hay by rail to Memphis is $35 per ton exclusive of transfer and
handling costs. The rail rates are based on fifty five ton loads for 50' boxcars and sixty-four ton
loads in 60' boxcars and the per load rates found in Table 38. Other representative costs of
transportation are also listed.
3.
Conclusion
Parameters estimated in this study provide valuable guidelines for establishing a hay
processing facility in the Diamond Valley area. Many factors influence the potential economic
viability of a hay processing facility however. The cost per ton of processing at a given volume,
while subject to variability, is much more certain than are market prices and quantities demanded,
upon which the actual volume of production will depend.
Marketing Potential
The processing of hay offers growers and or processors potential market power. A
differentiated product or products can shift the marketing position of hay sellers towards a price
seeking situation as opposed to the almost pure price taking situation currently faced in the
marketing of standard baled hay. Options are an important part of this analysis. The existence of
an option to cube or compress hay allows marketing flexibility. Straw and hay other than alfalfa
also can be cubed or compressed.
There are also some remote possibilities of processing
materials into fuel.
33
Not all information found indicated a positive outlook for processing hay in the Diamond
Valley area. Canadian growers and processors have all but taken away the U.S. export market for
pelletized alfalfa due to transportation subsidies offered by their government. Cubed and further
compressed hay products could share this same fate.
Volumes
of
hay
identified
for
processing efficiency are large relative to the amounts available. A hay processing facility in the
Diamond Valley would require cooperation between hay growers for sufficient volumes to be
maintained. This could possibly require diversion of hay from established and reliable markets to
new and as yet unknown and untested markets. New risk and possible instability could be
introduced into the Diamond Valley hay situation.
Marketing options were discussed with equipment manufacturers and hay sellers.
It
appears to be a general consensus that the marketing of compressed bales of hay to eastern dairy
concerns via rail shipment covers the cost of processing and little or no more. It does offer an
option, however. People were more vague when discussing the potential for profitably when
marketing hay in the south and southeast. At least one large concern operates a regional hay
distribution center in the southeastern United States. Such a center for temporary storage and
breaking bulk might be the key to profitably tapping into markets distant from Diamond Valley.
Researching the costs and benefits of such a venture are beyond the scope of this study.
Economic inertia can be a powerful force. Increased availability of cubed hay can create
increased demand as buyers begin to use the new product. Larger operators may invest in
equipment capable of handling and feeding cubed hay thus becoming more dependent on it.
Cubed hay provides a convenient, premixed feed for small operations. Vertical integration of the
Diamond Valley hay industry by the establishment of a hay processing facility could generate
enough inertia to justify additional equipment to bag the cubed alfalfa at the facility for sale to
smaller firms and individuals thus offering yet another marketing option for Diamond Valley hay
and integrating another production process into the local industry. There is a largely unquantified
market comprised of pleasure horse owners who could potentially benefit from the handling ease
of further compressed baled hay in their travel to competitions, rides, and in their everyday
34
feeding patterns. Success can breed more success. Tapping into these niche markets depends on
first covering the initial facility costs of ownership and operation via larger scale bulk production
and shipment.
The concept of value added in the way of form, place, time, and possession utility through
the productive process is central to the potential economic success of a facility to further process
hay. The establishment and ownership of a facility to further process and store hay yields
possession utility. The denser weight to volume ratio of the further processed hay products offers
utility of form. The increased ease of handling and the potential of machine feeding in the case of
cubed hay are also utilities of form. In a more concentrated form, there are potential storage
benefits which contribute time utility to the hay. The efficiencies of transportation gained by the
increased weight to volume ratio offer potential geographic market expansion yielding place utility
as well. The advantages of these value added features must be considered in the day to day
operation of a processing plant as well as in the initial facility development.
The further processing of hay can offer many new marketing opportunities to growers and
processors. Hay is increasingly marketed on a global basis. Relative costs of land and labor
within the expanded geographic market range can offer new comparative advantages to a hay
processor in the Diamond Valley area. Globalization of markets, urbanization of areas previously
agricultural, and other economic forces combine to create an environment in which relative feed
prices are constantly in flux. Good, active management and marketing is essential. To take
advantage of the added marketing potential of processed hay products, the opportunities to
benefit from comparative advantages, to penetrate new markets, or to expand existing markets
must continually be sought out.
Facility and Facility Operation
The possibilities of economic efficiencies not included in the analysis should be briefly
mentioned. The different needs for storage and the different time requirements of processing
relative to shipment suggest that the two enterprises of double compressing and cubing alfalfa
35
might be complementary. A given crew of workers could be busy cubing hay during periods
when double compressed hay was not needed. Within a relevant range there would be no need
for more salaried personnel. In the combined analysis the compressing system is located on the
same equipment slab as the cubing system. Some of the possible efficiencies of operating both
processes under the same roof are seen in the analysis while other efficiencies may not be fully
captured.
The cost structure of a processing facility is largely determined by the initial investment
decisions. There are high-end hay processing plants and then there are austere, bare-bones plants
processing hay with only a minimal investment. There are corresponding trade-offs between the
economic efficiency and the investment requirements of a given plant. The combinations of
equipment ownership strategies and marketing strategies are seemingly endless.
Economic
efficiency however, appears to be best for facilities towards the higher end of the investment
requirements scale. Current and future investment structure and operational criteria must also be
periodically evaluated taking into account the relative costs of storage space, transportation
modes, labor, and other factors affecting the economic efficiency and viability of the plant.
The hypothetical plant of this analysis is thought to be representative of a facility suitable
to the situation in the Diamond Valley area of north central Nevada. In no way is either the
cubing system alone, the double compressing system alone, or the two systems together, intended
to represent the only possible configurations for hay processing facilities.
Investment
requirements and operational costs are felt to be representative of an actual facility. Variation in
actual costs could be large due to a variety of factors. The options presented in this study along
with estimated costs of ownership and operation, provide valuable guidelines for potential
investors.
Transportation
Within the current geographic marketing region the cost of transportation of processed
hay is about the same as that for standard baled hay. For export movement or movement to
potential dairy and horse markets in the east and southeast there appears to be some potential
36
transportation cost advantage for further processed hay. Also identified in the study are possible
savings on movements of standard bales to eastern and southeastern destinations via rail
transport. Markets for hay in eastern areas remain largely undefined in terms of price and
volumes which would determine the viability of transporting hay to destinations east.
Currently, at least some Diamond Valley hay is purchased for further processing and resale
in foreign markets. The decision of where it would be most economical to process Diamond
Valley hay is an important concern for viability of a processing facility in the Diamond Valley
area. Depending on volumes processed and relative costs and prices, it could be more efficient to
process the hay elsewhere even if economic margins are positive for the Diamond Valley area.
For example an area grower who realizes $10 more per ton over the standard baled hay
price through local processing, all other things being equal, would not logically process locally if
another $1 could be realized by having the hay processed close to a seaport. While such a
situation could erode the volumes required for efficient processing, all other things are not equal.
The margin between local and non-local processing would have to overcome financial and other
non-monetary costs such as an aversion to dealing with a distant firm as opposed to a local firm
possibly owned cooperatively by the growers. Also the situation could be that if volume was
maintained, the $1 cost difference of processing in Diamond Valley as opposed to a seaport could
be covered by larger returns possible in eastern markets due to having a facility in the Diamond
Valley area.
The transportation margin is a relatively large part of the delivered price of exported hay
and hay products. This is even more true of lesser-value hays. The transportation margin is an
important factor in the economic decision of where hay should be processed. Transportation
efficiencies gained through processing would sway the efficiency towards processing close to the
source. If there is basically no difference between transporting standard baled and processed hay
directly to centralized ports or rail facilities, then the decision of where to process is based on
factors such as relative costs between locales, and potential volumes and efficiencies of scale
possible at each location.
37
The marketing function of consolidation for export takes place at seaports. There are
services available close to ports where hay can be further compressed and containerized for
export. There are also facilities for containerizing cubed hay for export in proximity to some
ports. Large volumes due to proximity to a port can allow these facilities to benefit from
economies of size. However, the scarcity relative to demand for real estate near a port and the
high labor costs associated with urban areas can make it potentially beneficial for exporters to
perform the value added functions of compressing, or cubing, and containerizing hay closer to
where it is grown.
Farming areas such as the Diamond Valley generally have land and labor cost structures
much lower than those found near major seaports. Volume processing and relative prices of land
and labor between the locales will contribute to determining which is most economical. Positive
synergistic effects of processing for both export and domestic shipment would influence the
decision towards locating a processing facility in the Diamond Valley area.
38
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42
Table 1. Hay Market Price
Year
Nevada
California
California
California
California
California
California
California
California
California
Statewide /1
Alfalfa Hay
Standard
Bale
Price
Northern /2
Alfalfa Hay
Standard
Bale
Price
Northern /2
Alfalfa Hay
Standard
Cube
Price
Central /2
Valley
Alfalfa Hay
Cube
Price
South /2
Valley
Alfalfa Hay
Cube
Price
Southern /2
Alfalfa Hay
Cube
Price
Port /2
Alfalfa Hay
Compressed
Bale
Price
$ / ton
South /2
Valley
Alfalfa Hay
Standard
Bale
Price
$ / ton
Southern /2
Alfalfa Hay
Standard
Bale
Price
$ / ton
Central /2
Valley
Alfalfa Hay
Standard
Bale
Price
$ / ton
$ / ton
$ / ton
$ / ton
$ / ton
$ / ton
$ / ton
1987
1988
1989
1990
1991
81.25
94.16
103.58
107.08
91.00
113.36
117.21
131.70
142.10
125.07
109.28
120.10
134.09
142.64
123.42
113.42
116.94
133.27
139.19
117.79
109.45
120.02
135.17
137.73
115.94
112.51
122.05
135.13
149.89
122.52
101.18
114.85
125.51
132.60
111.15
98.42
112.17
126.25
133.30
117.93
119.19
127.85
135.77
143.16
126.40
138.65
160.68
173.14
176.84
163.47
Average
95.41
125.89
125.91
124.12
123.66
128.42
117.06
117.61
130.47
162.56
1. Price is a seasonal average price net to grower
2. Price is a seasonal average price net to grower
43
Table 2. Facility Processing Capacity
Cubing Rate
Compressing Rate
8 work hours a day
22 work day/month
Facility
Processing
Time
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
16 ton/hour
15 tons/hour
Facility
Processing
Time
days / yr
Facility
Processing
Time
mths / yr
37.5
43.8
50.0
56.3
62.5
68.8
75.0
81.3
87.5
93.8
100.0
106.3
112.5
118.8
125.0
131.3
137.5
143.8
150.0
156.3
162.5
168.8
175.0
181.3
187.5
193.8
200.0
206.3
212.5
218.8
225.0
231.3
237.5
243.8
250.0
1.7
2.0
2.3
2.6
2.8
3.1
3.4
3.7
4.0
4.3
4.5
4.8
5.1
5.4
5.7
6.0
6.3
6.5
6.8
7.1
7.4
7.7
8.0
8.2
8.5
8.8
9.1
9.4
9.7
9.9
10.2
10.5
10.8
11.1
11.4
Cubing
Capacity
Compressing
Capacity
tons / yr
tons / yr
4,800
5,600
6,400
7,200
8,000
8,800
9,600
10,400
11,200
12,000
12,800
13,600
14,400
15,200
16,000
16,800
17,600
18,400
19,200
20,000
20,800
21,600
22,400
23,200
24,000
24,800
25,600
26,400
27,200
28,000
28,800
29,600
30,400
31,200
32,000
4,500
5,250
6,000
6,750
7,500
8,250
9,000
9,750
10,500
11,250
12,000
12,750
13,500
14,250
15,000
15,750
16,500
17,250
18,000
18,750
19,500
20,250
21,000
21,750
22,500
23,250
24,000
24,750
25,500
26,250
27,000
27,750
28,500
29,250
30,000
Table 3. Facility Investment Cost
44
Item
Cost
$
Land and Improvements
Land
Office
Storage Building (Bales and or Cubes)
Storage Building (Cubes)
Garage and Shop Building
Slab for Processing Equipment
Asphalt Recieving and Shipping Area
Truck Scale
50,000
125,000
117,180
117,180
100,000
42,500
32,600
40,000
Sub-total
624,460
Cubing Equipment
Two Cubing Units
Feeding and Cube Handling System
Tub Grinder
Cube Cooler
Telescoping Piler #1
Two Horizontal Conveyors
Metal Detector System
Electrical Equipment
156,630
95,729
41,992
77,760
32,025
14,150
16,470
38,000
Sub-total
472,756
Compressing Equipment
Compresser Unit #1
Compresser Unit #2
Spare Parts
Starter Panel
Hydraulic Oil
Freight
210,000
210,000
20,000
10,000
2,129
4,000
Sub-total
456,129
Support Equipment
Squeeze
Forklift with Hayrack Attachment
Front Loader
Telescoping Piler #2
Pickup Truck #1
Pickup Truck #2
Shop Tools & Equipment
Sub-total
Miscellaneous Equipment
Office Furnishings
Sample Grinder
Computer and Printer
Sub-total
Total
80,000
32,000
80,000
32,025
20,000
20,000
5,000
269,025
5,000
1,400
6,000
12,400
1,834,770
Table 4. Facility Total Investment Cost.
45
Facility
Cubing Facility
Land and Improvements
Equipment
Total
Compressing Facility
Land and Improvements
Equipment
Cost
$
624,460
722,181
1,346,641
507,280
625,529
Total
1,132,809
Cubing and Compressing Facility
Land and Improvements
Equipment
624,460
1,210,310
Total
1,834,770
46
Table 5. Facility Property Tax
Cost
$
Tax
Rate
%
Land and Improvements
Land
Office
Storage Building (Bales and or Cubes)
Storage Building (Cubes)
Garage and Shop Building
Slab for Processing Equipment
Asphalt Recieving Area
Truck Scale
50,000
125,000
117,180
117,180
100,000
42,500
32,600
40,000
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
Sub-total
624,460
Cubing Equipment
Two Cubing Units
Feeding and Cube Handling System
Tub Grinder
Cube Cooler
Telescoping Piler #1
Two Horizontal Conveyors
Metal Detector System
Electrical Equipment
156,630
95,729
41,992
77,760
32,025
14,150
16,470
38,000
Sub-total
472,756
Compressing Equipment
Compresser Unit #1
Compresser Unit #2
Spare Parts
Starter Panel
Hydraulic Oil
Freight
210,000
210,000
20,000
10,000
2,129
4,000
Sub-total
456,129
Support Equipment
Squeeze
Forklift
Hayrack Attachment
Front Loader
Telescoping Piler #2
Pickup Truck #1
Pickup Truck #2
Shop tools & Equipment
Sub-total
Miscellaneous
Office Furnishings
Sample Grinder
Computer and Printer
Sub-total
80,000
25,000
7,000
80,000
32,025
20,000
20,000
5,000
12,400
297
743
696
696
594
253
194
238
3,711
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
931
569
250
462
190
84
98
226
2,809
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
1,248
1,248
119
59
13
24
2,711
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
0.00594
269,025
5,000
1,400
6,000
First Year
Tax
$ / yr
475
149
42
475
190
119
119
30
1,599
0.00594
0.00594
0.00594
30
8
36
74
47
Total
1,834,770
10,903
Table 6. Facility Insurance Cost
Cost
$ / yr
General Liability
Fire and Theft (all risk)
Automobile (full coverage)
Total
8,600
2,675
1,700
12,975
48
Table 7. Labor Cost
Salary Labor Cost
Number of Employees
paid a Salary
Manager
Secretary
Mechanic
1
1
1
Number of Employees
paid a Wage
Cubing
Labor
Compressing
Labor
5
6
Cost
$ / hr
Cost
$ / hr
7.50
0.60
0.90
1.42
10.42
Cost
$ / yr
Cost
$ / yr
Cost
$ / yr
Salary
Wage
Social Security
Workman's Compensation
Health Insurance
30,000
17,000
30,000
2,400
3,600
250
1,360
2,040
250
2,400
3,600
250
7.50
0.60
0.90
1.42
Total
36,250
20,650
36,250
10.42
49
Table 8. Cubing System Electricity Cost
Machine
Horse
Power
hp
Direct Support Equipment
Air Compresser
Machine
Load
Factor
%
Machine
Electricity
Requirement
kwh / hr
Electricity
Rate
$ / kwh
Machine
Electricity
Cost
$ / hr
5
0.75
2.80
0.09
0.25
200
5
0.75
0.75
111.86
2.80
0.09
0.09
10.07
0.25
5
5
1
5
5
1
0.75
0.75
0.75
0.75
0.75
0.75
2.80
2.80
0.56
2.80
2.80
0.56
0.09
0.09
0.09
0.09
0.09
0.09
0.25
0.25
0.05
0.25
0.25
0.05
Cubing
Infeed Conveyor
Dust & Fines Return System
Mixer #1
Mixer #2
Cuber #1
Cuber #2
Takeaway Conveyor
5
10
5
5
200
200
5
0.75
0.75
0.75
0.75
0.75
0.75
0.75
2.80
5.59
2.80
2.80
111.86
111.86
2.80
0.09
0.09
0.09
0.09
0.09
0.09
0.09
0.25
0.50
0.25
0.25
10.07
10.07
0.25
Cube Cooler
Mechanical Cube Spreader
Fines Return Augers
Fines Eliminating Conveyor
Floor Drive
Blower #1
Blower #2
Blower #3
3
3
3
2
15
15
15
0.75
0.75
0.75
0.75
0.75
0.75
0.75
1.68
1.68
1.68
1.12
8.39
8.39
8.39
0.09
0.09
0.09
0.09
0.09
0.09
0.09
0.15
0.15
0.15
0.10
0.76
0.76
0.76
3
0.75
1.68
0.09
0.15
2
2
10
0.75
0.75
0.75
1.12
1.12
5.59
0.09
0.09
0.09
0.10
0.10
0.50
Grinding
Tub Grinder
Sealed Drag Chain Conveyor
Metering Bin
Doffer #1
Doffer #2
Foor Drive Drag Link Belt
Leveling Auger #1
Leveling Auger #2
Auger Under Metering Bin
Metal Detector
Conveyor 6'
Pneumatic Rejection gate
Finished Cube Takeaway System
Horizontal Coveyor #1
Horizontal Coveyor #2
Telescoping Piler #1
Total
735
411.07
37.00
50
Table 9. Cubing System Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
hrs / yr
yrs
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Machine
Repairs and
Maintenance
Cost
$ / yr
16,080
18,760
21,440
24,120
26,800
29,480
32,160
34,840
37,520
40,200
42,880
45,560
48,240
50,920
53,600
56,280
58,960
61,640
64,320
67,000
69,680
72,360
75,040
77,720
80,400
83,080
85,760
88,440
91,120
93,800
96,480
99,160
101,840
104,520
Machine
Electricity
Cost
Machine
Operation
Cost
Machine
Operation
Cost
Machine
Operation
Cost
$ / yr
$ / yr
$ / hr
$ / ton
27,179
31,709
36,238
40,768
45,298
49,828
54,358
58,887
63,417
67,947
72,477
77,007
81,536
86,066
90,596
95,126
99,656
104,185
108,715
113,245
117,775
122,305
126,834
131,364
135,894
140,424
144,954
149,483
154,013
158,543
163,073
167,603
172,132
176,662
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
90.60
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
11,099
12,949
14,798
16,648
18,498
20,348
22,198
24,047
25,897
27,747
29,597
31,447
33,296
35,146
36,996
38,846
40,696
42,545
44,395
46,245
48,095
49,945
51,794
53,644
55,494
57,344
59,194
61,043
62,893
64,743
66,593
68,443
70,292
72,142
51
2,000
2,000
10
107,200
73,992
181,192
90.60
5.66
52
Table 10. Compressing System Electricity Cost
Machine
Horse
Power
hp
Machine
Load
Factor
%
Compressor
Unit #1
Motor
Motor
Motor
Motor
Motor
Motor
5
5
30
75
75
75
0.75
0.75
0.75
0.75
0.75
0.75
Compressor
Unit #2
Motor
Motor
Motor
Motor
Motor
Motor
5
5
30
75
75
75
0.75
0.75
0.75
0.75
0.75
0.75
Total
530
Machine
Electricity
Requirement
kwh / hr
$ / kwh
Machine
Electricity
Cost
$ / hr
2.80
2.80
16.78
41.95
41.95
41.95
0.09
0.09
0.09
0.09
0.09
0.09
0.25
0.25
1.51
3.78
3.78
3.78
2.80
2.80
16.78
41.95
41.95
41.95
0.09
0.09
0.09
0.09
0.09
0.09
0.25
0.25
1.51
3.78
3.78
3.78
296.42
Electricity
Rate
26.68
53
Table 11. Compressing System Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
hrs / yr
yrs
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Machine
Repairs and
Maintenance
Cost
$ / yr
9,000
10,500
12,000
13,500
15,000
16,500
18,000
19,500
21,000
22,500
24,000
25,500
27,000
28,500
30,000
31,500
33,000
34,500
36,000
37,500
39,000
40,500
42,000
43,500
45,000
46,500
48,000
49,500
51,000
52,500
54,000
55,500
57,000
58,500
Machine
Electricity
Cost
Machine
Twine
Cost
Machine
Operation
Cost
Machine
Operation
Cost
Machine
Operation
Cost
$ / yr
$ / yr
$ / yr
$ / hr
$ / ton
8,003
9,337
10,671
12,005
13,339
14,673
16,006
17,340
18,674
20,008
21,342
22,676
24,010
25,344
26,677
28,011
29,345
30,679
32,013
33,347
34,681
36,015
37,348
38,682
40,016
41,350
42,684
44,018
45,352
46,685
48,019
49,353
50,687
52,021
13,500
15,750
18,000
20,250
22,500
24,750
27,000
29,250
31,500
33,750
36,000
38,250
40,500
42,750
45,000
47,250
49,500
51,750
54,000
56,250
58,500
60,750
63,000
65,250
67,500
69,750
72,000
74,250
76,500
78,750
81,000
83,250
85,500
87,750
30,503
35,587
40,671
45,755
50,839
55,923
61,006
66,090
71,174
76,258
81,342
86,426
91,510
96,594
101,677
106,761
111,845
116,929
122,013
127,097
132,181
137,265
142,348
147,432
152,516
157,600
162,684
167,768
172,852
177,935
183,019
188,103
193,187
198,271
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
101.68
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
54
2,000
2,000
10
60,000
53,355
90,000
203,355
Machine
Fuel
and Oil
Cost
$ / yr
1,174
1,369
1,565
1,760
1,956
2,152
2,347
2,543
2,738
2,934
3,130
3,325
3,521
3,716
3,912
4,108
4,303
4,499
4,694
4,890
5,086
5,281
5,477
5,672
5,868
6,064
6,259
6,455
6,650
6,846
7,042
7,237
7,433
7,629
Machine
Operation
Cost
Machine
Operation
Cost
$ / yr
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
13,394
13,872
14,354
14,840
15,330
$ / hr
10.92
11.17
11.40
11.62
11.82
12.02
12.21
12.38
12.56
12.72
12.88
13.04
13.19
13.34
13.48
13.62
13.76
13.89
14.02
14.15
14.27
14.40
14.52
14.64
14.75
14.87
14.98
15.09
15.20
15.31
15.41
15.52
15.62
15.72
101.68
6.78
Table 12. Hay Squeeze Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
hrs / yr
150
175
200
225
250
275
300
325
350
375
400
425
450
475
500
525
550
575
600
625
650
675
700
725
750
775
800
825
850
875
900
925
950
975
yrs
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Machine
Repairs and
Maintenance
Cost
$ / yr
465
586
716
854
1,000
1,154
1,315
1,482
1,657
1,837
2,024
2,217
2,415
2,619
2,828
3,043
3,263
3,488
3,718
3,953
4,192
4,437
4,685
4,939
5,196
5,458
5,724
5,995
6,269
6,548
6,831
7,117
7,408
7,702
Machine /1
Operation
Cost
Machine /2
Operation
Cost
$ / hr
5.46
5.59
5.70
5.81
5.91
6.01
6.10
6.19
6.28
6.36
6.44
6.52
6.60
6.67
6.74
6.81
6.88
6.95
7.01
7.07
7.14
7.20
7.26
7.32
7.38
7.43
7.49
7.55
7.60
7.65
7.71
7.76
7.81
7.86
$ / ton
0.34
0.35
0.36
0.36
0.37
0.38
0.38
0.39
0.39
0.40
0.40
0.41
0.41
0.42
0.42
0.43
0.43
0.43
0.44
0.44
0.45
0.45
0.45
0.46
0.46
0.46
0.47
0.47
0.47
0.48
0.48
0.48
0.49
0.49
55
2,000
1,000
10
8,000
7,824
15,824
15.82
7.91
0.49
1. Machine operation cost is relative to facility processing time 2. Machine operation cost is relative to facility processing time and the cubing capacity
Table 13. Forklift Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
yrs
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
9.66
9.33
9.03
8.75
8.48
8.24
8.00
7.78
7.57
7.37
7.18
Machine
Repairs and
Maintenance
Cost
$ / yr
317
400
489
583
683
788
898
1,012
1,131
1,255
1,382
1,514
1,649
1,789
1,932
2,078
2,229
2,382
2,539
2,700
2,863
3,030
3,200
3,314
3,429
3,543
3,657
3,771
3,886
4,000
4,114
4,229
4,343
4,457
Machine
Fuel
and Oil
Cost
$ / yr
388
453
518
582
647
712
776
841
906
970
1,035
1,100
1,164
1,229
1,294
1,358
1,423
1,488
1,553
1,617
1,682
1,747
1,811
1,876
1,941
2,005
2,070
2,135
2,199
2,264
2,329
2,393
2,458
2,523
Machine
Operation
Cost
Machine
Operation
Cost
Machine /1
Operation
Cost
Machine /2
Operation
Cost
$ / yr
706
853
1,006
1,165
1,330
1,500
1,674
1,853
2,037
2,225
2,417
2,614
2,814
3,018
3,226
3,437
3,652
3,870
4,092
4,317
4,545
4,777
5,011
5,190
5,369
5,548
5,727
5,906
6,085
6,264
6,443
6,622
6,801
6,980
$ / hr
2.35
2.44
2.52
2.59
2.66
2.73
2.79
2.85
2.91
2.97
3.02
3.07
3.13
3.18
3.23
3.27
3.32
3.37
3.41
3.45
3.50
3.54
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
$ / hr
2.35
2.44
2.52
2.59
2.66
2.73
2.79
2.85
2.91
2.97
3.02
3.07
3.13
3.18
3.23
3.27
3.32
3.37
3.41
3.45
3.50
3.54
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
3.58
$ / ton
0.16
0.16
0.17
0.17
0.18
0.18
0.19
0.19
0.19
0.20
0.20
0.20
0.21
0.21
0.22
0.22
0.22
0.22
0.23
0.23
0.23
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
56
2,000
2,000
7.00
4,571
2,588
7,159
3.58
3.58
0.24
1. Machine operation cost is relative to facility processing time 2. Machine operation cost is relative to facility processing time and the compressing capacity.
Table 14. Front Loader Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
yrs
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Machine
Repairs and
Maintenance
Cost
$ / yr
372
469
572
683
800
923
1,052
1,186
1,325
1,470
1,619
1,773
1,932
2,095
2,263
2,435
2,611
2,790
2,974
3,162
3,354
3,549
3,748
3,951
4,157
4,366
4,579
4,796
5,015
5,238
5,464
5,694
5,926
Machine
Fuel
and Oil
Cost
$ / yr
929
1,084
1,239
1,394
1,549
1,703
1,858
2,013
2,168
2,323
2,478
2,632
2,787
2,942
3,097
3,252
3,407
3,562
3,716
3,871
4,026
4,181
4,336
4,491
4,646
4,800
4,955
5,110
5,265
5,420
5,575
5,730
5,884
Machine
Operation
Cost
$ / yr
1,301
1,552
1,811
2,077
2,349
2,626
2,910
3,199
3,493
3,792
4,097
4,406
4,719
5,037
5,360
5,686
6,017
6,352
6,691
7,034
7,380
7,730
8,084
8,442
8,802
9,167
9,535
9,906
10,280
10,658
11,039
11,423
11,810
Machine
Operation
Cost
Machine /1
Operation
Cost
Machine /2
Operation
Cost
$ / hr
4.34
4.44
4.53
4.61
4.70
4.78
4.85
4.92
4.99
5.06
5.12
5.18
5.24
5.30
5.36
5.42
5.47
5.52
5.58
5.63
5.68
5.73
5.77
5.82
5.87
5.91
5.96
6.00
6.05
6.09
6.13
6.17
6.22
$ / hr
4.34
4.44
4.53
4.61
4.70
4.78
4.85
4.92
4.99
5.06
5.12
5.18
5.24
5.30
5.36
5.42
5.47
5.52
5.58
5.63
5.68
5.73
5.77
5.82
5.87
5.91
5.96
6.00
6.05
6.09
6.13
6.17
6.22
$ / ton
0.27
0.28
0.28
0.29
0.29
0.30
0.30
0.31
0.31
0.32
0.32
0.32
0.33
0.33
0.33
0.34
0.34
0.35
0.35
0.35
0.35
0.36
0.36
0.36
0.37
0.37
0.37
0.38
0.38
0.38
0.38
0.39
0.39
57
1,950
2,000
1,950
2,000
10
10
6,162
6,400
6,039
6,194
12,201
12,594
6.26
6.30
6.26
6.30
0.39
0.39
1. Machine operation cost is relative to facility processing time. 2. Machine operation cost is relative to facility processing time and the cubing capacity
Table 15. Telescoping Piler Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
hrs / yr
78
91
104
117
130
143
156
169
182
195
208
221
234
247
260
273
286
299
312
325
338
351
364
377
390
403
416
429
442
455
468
481
yrs
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Machine
Repairs and
Maintenance
Cost
$ / yr
70
88
107
128
150
173
197
222
249
276
304
333
363
393
425
457
490
524
558
593
629
666
703
741
780
819
859
900
941
983
1,025
1,068
Machine
Fuel
and Oil
Cost
$ / yr
22.25
25.96
29.66
33.37
37.08
40.79
44.50
48.20
51.91
55.62
59.33
63.04
66.74
70.45
74.16
77.87
81.58
85.28
88.99
92.70
96.41
100.12
103.82
107.53
111.24
114.95
118.66
122.36
126.07
129.78
133.49
137.20
Machine
Operation
Cost
Machine
Operation
Cost
Machine /1
Operation
Cost
Machine /2
Operation
Cost
$ / yr
92
114
137
162
187
214
242
271
301
331
363
396
429
464
499
535
571
609
647
686
726
766
807
849
891
934
978
1,022
1,067
1,113
1,159
1,206
$ / hr
1.18
1.25
1.32
1.38
1.44
1.50
1.55
1.60
1.65
1.70
1.75
1.79
1.83
1.88
1.92
1.96
2.00
2.04
2.07
2.11
2.15
2.18
2.22
2.25
2.29
2.32
2.35
2.38
2.41
2.45
2.48
2.51
$ / hr
0.31
0.33
0.34
0.36
0.37
0.39
0.40
0.42
0.43
0.44
0.45
0.47
0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
0.58
0.59
0.59
0.60
0.61
0.62
0.63
0.64
0.64
0.65
$ / ton
0.019
0.020
0.021
0.022
0.023
0.024
0.025
0.026
0.027
0.028
0.028
0.029
0.030
0.030
0.031
0.032
0.032
0.033
0.034
0.034
0.035
0.035
0.036
0.037
0.037
0.038
0.038
0.039
0.039
0.040
0.040
0.041
58
1,900
1,950
2,000
494
507
520
10
10
10
1,112
1,156
1,201
140.90
144.61
148.32
1,253
1,301
1,349
2.54
2.57
2.59
0.66
0.67
0.67
0.041
0.042
0.042
1. Machine operation cost is relative to facility processing time 2. Machine operation cost is relative to facility processing time
59
Table 16. Pickup Truck #1 Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
hrs / yr
45.0
52.5
60.0
67.5
75.0
82.5
90.0
97.5
105.0
112.5
120.0
127.5
135.0
142.5
150.0
157.5
165.0
172.5
180.0
187.5
195.0
202.5
210.0
217.5
225.0
232.5
240.0
247.5
255.0
262.5
270.0
277.5
285.0
292.5
300.0
yrs
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Machine
Repairs and
Maintenance
Cost
$ / yr
19
24
29
35
41
47
54
61
68
75
83
91
99
108
116
125
134
143
153
162
172
182
192
203
213
224
235
246
258
269
281
292
304
316
329
Machine
Fuel
and Oil
Cost
$ / yr
274
319
365
411
456
502
548
593
639
685
730
776
822
867
913
958
1,004
1,050
1,095
1,141
1,187
1,232
1,278
1,324
1,369
1,415
1,461
1,506
1,552
1,597
1,643
1,689
1,734
1,780
1,826
Machine
Operation
Cost
Machine
Operation
Cost
Machine /1
Operation
Cost
Machine /2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
$ / hr
6.51
6.54
6.58
6.61
6.63
6.66
6.69
6.71
6.73
6.76
6.78
6.80
6.82
6.84
6.86
6.88
6.90
6.92
6.93
6.95
6.97
6.99
7.00
7.02
7.03
7.05
7.07
7.08
7.10
7.11
7.12
7.14
7.15
7.17
7.18
$ / hr
0.98
0.98
0.99
0.99
0.99
1.00
1.00
1.01
1.01
1.01
1.02
1.02
1.02
1.03
1.03
1.03
1.03
1.04
1.04
1.04
1.05
1.05
1.05
1.05
1.06
1.06
1.06
1.06
1.06
1.07
1.07
1.07
1.07
1.08
1.08
$ / ton
0.061
0.061
0.062
0.062
0.062
0.062
0.063
0.063
0.063
0.063
0.064
0.064
0.064
0.064
0.064
0.064
0.065
0.065
0.065
0.065
0.065
0.065
0.066
0.066
0.066
0.066
0.066
0.066
0.067
0.067
0.067
0.067
0.067
0.067
0.067
60
1. . Machine operation cost is relative to facility processing time. 2. Machine operation cost is relative to facility processing time and the cubing capacity.
Table 17. Pickup Truck #2 Operation Cost
Facility
Processing
Time
Machine
Operation
Time
Machine
Useful
Life
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
hrs / yr
45.0
52.5
60.0
67.5
75.0
82.5
90.0
97.5
105.0
112.5
120.0
127.5
135.0
142.5
150.0
157.5
165.0
172.5
180.0
187.5
195.0
202.5
210.0
217.5
225.0
232.5
240.0
247.5
255.0
262.5
270.0
277.5
285.0
292.5
300.0
yrs
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Machine
Repairs and
Maintenance
Cost
$ / yr
19
24
29
35
41
47
54
61
68
75
83
91
99
108
116
125
134
143
153
162
172
182
192
203
213
224
235
246
258
269
281
292
304
316
329
Machine
Fuel
and Oil
Cost
$ / yr
274
319
365
411
456
502
548
593
639
685
730
776
822
867
913
958
1,004
1,050
1,095
1,141
1,187
1,232
1,278
1,324
1,369
1,415
1,461
1,506
1,552
1,597
1,643
1,689
1,734
1,780
1,826
Machine
Operation
Cost
Machine
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
$ / hr
6.51
6.54
6.58
6.61
6.63
6.66
6.69
6.71
6.73
6.76
6.78
6.80
6.82
6.84
6.86
6.88
6.90
6.92
6.93
6.95
6.97
6.99
7.00
7.02
7.03
7.05
7.07
7.08
7.10
7.11
7.12
7.14
7.15
7.17
7.18
Machine /1
Operation
Cost
$ / hr
0.98
0.98
0.99
0.99
0.99
1.00
1.00
1.01
1.01
1.01
1.02
1.02
1.02
1.03
1.03
1.03
1.03
1.04
1.04
1.04
1.05
1.05
1.05
1.05
1.06
1.06
1.06
1.06
1.06
1.07
1.07
1.07
1.07
1.08
1.08
Machine /2
Operation
Cost
$ / ton
0.061
0.061
0.062
0.062
0.062
0.062
0.063
0.063
0.063
0.063
0.064
0.064
0.064
0.064
0.064
0.064
0.065
0.065
0.065
0.065
0.065
0.065
0.066
0.066
0.066
0.066
0.066
0.066
0.067
0.067
0.067
0.067
0.067
0.067
0.067
61
1. Machine operation cost is relative to facility processing time. 2. Machine operation cost is relative to facility processing time and the cubing capacity.
62
Table 18. Depreciation
Cost
$
Economic
Life
yrs
Salvage
Value
%
50,000
125,000
117,180
20
20
20
100
10
10
50,000
12,500
11,718
0
5,625
5,273
117,180
100,000
42,500
32,600
40,000
624,460
20
20
20
20
20
10
10
10
10
10
11,718
10,000
4,250
3,260
4,000
107,446
5,273
4,500
1,913
1,467
1,800
25,851
156,630
95,729
10
10
10
10
15,663
9,573
14,097
8,616
41,992
77,760
32,025
14,150
16,470
38,000
472,756
10
10
10
10
10
10
10
10
10
10
10
10
4,199
7,776
3,203
1,415
1,647
3,800
47,276
3,779
6,998
2,882
1,274
1,482
3,420
42,548
Compressing Equipment
Compresser Unit #1
Compresser Unit #2
Spare Parts
Starter Panel
Hydraulic Oil
Freight
Sub-total
210,000
210,000
20,000
10,000
2,129
4,000
456,129
10
10
10
10
10
10
10
10
10
10
10
10
21,000
21,000
2,000
1,000
213
400
45,613
18,900
18,900
1,800
900
192
360
41,052
Support Equipment
Squeeze
Forklift
Hayrack Attachment
Front Loader
Telescoping Piler #2
Pickup Truck #1
Pickup Truck #2
Shop tools & Equipment
Sub-total
80,000
25,000
7,000
80,000
32,025
20,000
20,000
5,000
269,025
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
8,000
2,500
700
8,000
3,203
2,000
2,000
500
26,903
7,200
2,250
630
7,200
2,882
1,800
1,800
450
24,212
5,000
1,400
6,000
12,400
10
10
10
10
10
10
500
140
600
1,240
450
126
540
1,116
$228,477
$134,779
Land and Improvements
Land
Office
Storage Building (Bales and or
Cubes)
Storage Building (Cubes)
Garage & Shop Building
Slab for Processing Equipment
Asphalt Recieving Area
Truck Scale
Sub-total
Cubing Equipment
Two Cubing Units
Feeding and Cube Handling
System
Tub Grinder
Cube Cooler
Telescoping Piler #1
Two Horizontal Conveyors
Metal Detector System
Electrical Equipment
Sub-total
Miscellaneous
Office Furnishing
Sample Grinder
Computer and Printer
Sub-total
Total
$1,834,770
Salvage
Value
$
Depreciation
$ / yr
63
Table 19. Cubing Cost Per Ton with No Annual Payment
Cubing
Capacity
Tons
Facility
Processing
Time
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
tons / yr
hrs / yr
$ / ton
$ / ton
$ / ton
$ / ton
$ / ton
Cubing
System
Operation
Cost
$ / ton
4,800
5,600
6,400
7,200
8,000
8,800
9,600
10,400
11,200
12,000
12,800
13,600
14,400
15,200
16,000
16,800
17,600
18,400
19,200
20,000
20,800
21,600
22,400
23,200
24,000
24,800
25,600
26,400
27,200
28,000
28,800
29,600
30,400
31,200
32,000
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.68
1.44
1.26
1.12
1.36
1.24
1.13
1.05
0.97
0.91
0.85
0.80
0.76
0.72
0.68
0.65
0.62
0.59
0.57
0.54
0.52
0.50
0.49
0.47
0.45
0.44
0.42
0.41
0.40
0.39
0.38
0.37
0.36
0.35
0.34
2.70
2.32
2.03
1.80
1.62
1.47
1.35
1.25
1.16
1.08
1.01
0.95
0.90
0.85
0.81
0.77
0.74
0.71
0.68
0.65
0.62
0.60
0.58
0.56
0.54
0.52
0.51
0.49
0.48
0.46
0.45
0.44
0.43
0.42
0.41
16.04
13.75
12.03
10.69
9.63
8.75
8.02
7.40
6.88
6.42
6.02
5.66
5.35
5.07
4.81
4.58
4.38
4.18
4.01
3.85
3.70
3.56
3.44
3.32
3.21
3.10
3.01
2.92
2.83
2.75
2.67
2.60
2.53
2.47
2.41
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
3.26
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
5.66
Compressing
Hay
Forklift
Front
Telescoping
System
Squeeze Operation
Loader
Piler #2
Operation Operation
Cost
Operation Operation
Cost
Cost
Cost
Cost
$ / ton
$ / ton
$ / ton
$ / ton
$ / ton
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.34
0.35
0.36
0.36
0.37
0.38
0.38
0.39
0.39
0.40
0.40
0.41
0.41
0.42
0.42
0.43
0.43
0.43
0.44
0.44
0.45
0.45
0.45
0.46
0.46
0.46
0.47
0.47
0.47
0.48
0.48
0.48
0.49
0.49
0.49
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.27
0.28
0.28
0.29
0.29
0.30
0.30
0.31
0.31
0.32
0.32
0.32
0.33
0.33
0.33
0.34
0.34
0.35
0.35
0.35
0.35
0.36
0.36
0.36
0.37
0.37
0.37
0.38
0.38
0.38
0.38
0.39
0.39
0.39
0.39
0.02
0.02
0.02
0.02
0.02
0.02
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
Pickup
Truck #1
Operation
Cost
$ / ton
Pickup
Truck #2
Operation
Cost
$ / ton
Total
Processing
Cost
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
30.09
27.19
25.02
23.33
22.34
21.20
20.26
19.46
18.78
18.19
17.68
17.22
16.82
16.46
16.14
15.85
15.58
15.34
15.12
14.92
14.73
14.56
14.40
14.26
14.12
13.99
13.87
13.76
13.65
13.55
13.46
13.37
13.29
13.21
13.14
$ / ton
64
Table 20. Cubing Cost with No Annual Payment
Cubing
Capacity
Tons
Facility
Processing
Time
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
tons / yr
hrs / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8,044
8,044
8,044
8,044
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
15,631
18,236
20,841
23,446
26,051
28,656
31,261
33,866
36,472
39,077
41,682
44,287
46,892
49,497
52,102
54,707
57,313
59,918
62,523
65,128
67,733
70,338
72,943
75,548
78,153
80,759
83,364
85,969
88,574
91,179
93,784
96,389
98,994
101,599
4,800
5,600
6,400
7,200
8,000
8,800
9,600
10,400
11,200
12,000
12,800
13,600
14,400
15,200
16,000
16,800
17,600
18,400
19,200
20,000
20,800
21,600
22,400
23,200
24,000
24,800
25,600
26,400
27,200
28,000
28,800
29,600
30,400
31,200
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
27,179
31,709
36,238
40,768
45,298
49,828
54,358
58,887
63,417
67,947
72,477
77,007
81,536
86,066
90,596
95,126
99,656
104,185
108,715
113,245
117,775
122,305
126,834
131,364
135,894
140,424
144,954
149,483
154,013
158,543
163,073
167,603
172,132
176,662
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
13,394
13,872
14,354
14,840
15,330
Forklift
Operation
Cost
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Front
Loader
Operation
Cost
$ / yr
1,301
1,552
1,811
2,077
2,349
2,626
2,910
3,199
3,493
3,792
4,097
4,406
4,719
5,037
5,360
5,686
6,017
6,352
6,691
7,034
7,380
7,730
8,084
8,442
8,802
9,167
9,535
9,906
10,280
10,658
11,039
11,423
11,810
12,201
Telescoping
Piler #2
Operation
Cost
$ / yr
Pickup
Truck #1
Operation
Cost
$ / yr
Pickup
Truck #2
Operation
Cost
$ / yr
92
114
137
162
187
214
242
271
301
331
363
396
429
464
499
535
571
609
647
686
726
766
807
849
891
934
978
1,022
1,067
1,113
1,159
1,206
1,253
1,301
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / ton
144,446
152,272
160,116
167,978
178,690
186,583
194,490
202,412
210,346
218,294
226,253
234,225
242,209
250,204
258,210
266,227
274,254
282,292
290,339
298,397
306,464
314,541
322,626
330,721
338,825
346,938
355,060
363,189
371,328
379,474
387,629
395,792
403,962
412,141
30.09
27.19
25.02
23.33
22.34
21.20
20.26
19.46
18.78
18.19
17.68
17.22
16.82
16.46
16.14
15.85
15.58
15.34
15.12
14.92
14.73
14.56
14.40
14.26
14.12
13.99
13.87
13.76
13.65
13.55
13.46
13.37
13.29
13.21
65
32,000
2,000
0
10,880
12,975
77,000
104,205
181,192
0
15,824
0
12,594
1,349
2,154
2,154
420,327
13.14
Table 21. Cubing Cost with Annual Payment given 70% Down Payment
Cubing
Capacity
Tons
Facility
Processing
Time
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
tons / yr
hrs / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
54,281
8,044
8,044
8,044
8,044
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
15,631
18,236
20,841
23,446
26,051
28,656
31,261
33,866
36,472
39,077
41,682
44,287
46,892
49,497
52,102
54,707
57,313
59,918
62,523
65,128
67,733
70,338
72,943
75,548
78,153
80,759
83,364
85,969
88,574
91,179
93,784
96,389
4,800
5,600
6,400
7,200
8,000
8,800
9,600
10,400
11,200
12,000
12,800
13,600
14,400
15,200
16,000
16,800
17,600
18,400
19,200
20,000
20,800
21,600
22,400
23,200
24,000
24,800
25,600
26,400
27,200
28,000
28,800
29,600
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
Cubing
System
Operation
Cost
$ / yr
27,179
31,709
36,238
40,768
45,298
49,828
54,358
58,887
63,417
67,947
72,477
77,007
81,536
86,066
90,596
95,126
99,656
104,185
108,715
113,245
117,775
122,305
126,834
131,364
135,894
140,424
144,954
149,483
154,013
158,543
163,073
167,603
Compressing
Hay
System
Squeeze
Operation
Operation
Cost
Cost
$ / yr
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
13,394
13,872
14,354
Forklift
Operation
Cost
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Front
Loader
Operation
Cost
$ / yr
1,301
1,552
1,811
2,077
2,349
2,626
2,910
3,199
3,493
3,792
4,097
4,406
4,719
5,037
5,360
5,686
6,017
6,352
6,691
7,034
7,380
7,730
8,084
8,442
8,802
9,167
9,535
9,906
10,280
10,658
11,039
11,423
Telescoping
Piler #2
Operation
Cost
$ / yr
92
114
137
162
187
214
242
271
301
331
363
396
429
464
499
535
571
609
647
686
726
766
807
849
891
934
978
1,022
1,067
1,113
1,159
1,206
Pickup
Truck #1
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / ton
198,727
206,553
214,398
222,259
232,972
240,864
248,772
256,693
264,627
272,575
280,535
288,507
296,490
304,485
312,491
320,508
328,535
336,573
344,621
352,678
360,745
368,822
376,908
385,003
393,107
401,219
409,341
417,471
425,609
433,756
441,910
450,073
41.40
36.88
33.50
30.87
29.12
27.37
25.91
24.68
23.63
22.71
21.92
21.21
20.59
20.03
19.53
19.08
18.67
18.29
17.95
17.63
17.34
17.08
16.83
16.59
16.38
16.18
15.99
15.81
15.65
15.49
15.34
15.21
66
30,400
31,200
32,000
1,900
1,950
2,000
54,281
54,281
54,281
10,880
10,880
10,880
12,975
12,975
12,975
77,000
77,000
77,000
98,994
101,599
104,205
172,132
176,662
181,192
0
0
0
14,840
15,330
15,824
0
0
0
11,810
12,201
12,594
1,253
1,301
1,349
2,039
2,096
2,154
2,039
2,096
2,154
458,244
466,422
474,608
15.07
14.95
14.83
Table 22. Cubing Cost with Annual Payment given 50% Down Payment
Cubing
Capacity
Tons
Facility
Processing
Time
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
tons / yr
hrs / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
90,469
8,044
8,044
8,044
8,044
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
15,631
18,236
20,841
23,446
26,051
28,656
31,261
33,866
36,472
39,077
41,682
44,287
46,892
49,497
52,102
54,707
57,313
59,918
62,523
65,128
67,733
70,338
72,943
75,548
78,153
80,759
83,364
85,969
88,574
91,179
93,784
96,389
4,800
5,600
6,400
7,200
8,000
8,800
9,600
10,400
11,200
12,000
12,800
13,600
14,400
15,200
16,000
16,800
17,600
18,400
19,200
20,000
20,800
21,600
22,400
23,200
24,000
24,800
25,600
26,400
27,200
28,000
28,800
29,600
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
Cubing
System
Operation
Cost
$ / yr
27,179
31,709
36,238
40,768
45,298
49,828
54,358
58,887
63,417
67,947
72,477
77,007
81,536
86,066
90,596
95,126
99,656
104,185
108,715
113,245
117,775
122,305
126,834
131,364
135,894
140,424
144,954
149,483
154,013
158,543
163,073
167,603
Compressing
Hay
System
Squeeze
Operation Operation
Cost
Cost
$ / yr
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
13,394
13,872
14,354
Forklift
Operation
Cost
$ / yr
Front
Loader
Operation
Cost
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,301
1,552
1,811
2,077
2,349
2,626
2,910
3,199
3,493
3,792
4,097
4,406
4,719
5,037
5,360
5,686
6,017
6,352
6,691
7,034
7,380
7,730
8,084
8,442
8,802
9,167
9,535
9,906
10,280
10,658
11,039
11,423
Telescoping
Piler #2
Operation
Cost
$ / yr
92
114
137
162
187
214
242
271
301
331
363
396
429
464
499
535
571
609
647
686
726
766
807
849
891
934
978
1,022
1,067
1,113
1,159
1,206
Pickup
Truck #1
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / ton
234,915
242,741
250,585
258,446
269,159
277,052
284,959
292,880
300,815
308,762
316,722
324,694
332,678
340,673
348,679
356,696
364,723
372,761
380,808
388,866
396,933
405,009
413,095
421,190
429,294
437,407
445,528
453,658
461,797
469,943
478,098
486,261
48.94
43.35
39.15
35.90
33.64
31.48
29.68
28.16
26.86
25.73
24.74
23.87
23.10
22.41
21.79
21.23
20.72
20.26
19.83
19.44
19.08
18.75
18.44
18.15
17.89
17.64
17.40
17.18
16.98
16.78
16.60
16.43
67
30,400
31,200
32,000
1,900
1,950
2,000
90,469
90,469
90,469
10,880
10,880
10,880
12,975
12,975
12,975
77,000
77,000
77,000
98,994
101,599
104,205
172,132
176,662
181,192
0
0
0
14,840
15,330
15,824
0
0
0
11,810
12,201
12,594
1,253
1,301
1,349
2,039
2,096
2,154
2,039
2,096
2,154
494,431
502,610
510,796
16.26
16.11
15.96
Pickup
Truck #2
Operation
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / yr
$ / ton
Table 23. Cubing Cost with Annual Payment given 30% Down Payment
Cubing
Capacity
Tons
Facility
Processing
Time
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
tons / yr
hrs / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
4,800
5,600
6,400
7,200
8,000
8,800
9,600
10,400
11,200
12,000
12,800
13,600
14,400
15,200
16,000
16,800
17,600
18,400
19,200
20,000
20,800
21,600
22,400
23,200
24,000
24,800
25,600
26,400
27,200
28,000
28,800
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
126,656
8,044
8,044
8,044
8,044
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
15,631
18,236
20,841
23,446
26,051
28,656
31,261
33,866
36,472
39,077
41,682
44,287
46,892
49,497
52,102
54,707
57,313
59,918
62,523
65,128
67,733
70,338
72,943
75,548
78,153
80,759
83,364
85,969
88,574
91,179
93,784
Cubing
Compressing
Hay
System
System
Squeeze
Operation
Operation Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
27,179
31,709
36,238
40,768
45,298
49,828
54,358
58,887
63,417
67,947
72,477
77,007
81,536
86,066
90,596
95,126
99,656
104,185
108,715
113,245
117,775
122,305
126,834
131,364
135,894
140,424
144,954
149,483
154,013
158,543
163,073
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
13,394
13,872
Forklift
Operation
Cost
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
$ / yr
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,301
1,552
1,811
2,077
2,349
2,626
2,910
3,199
3,493
3,792
4,097
4,406
4,719
5,037
5,360
5,686
6,017
6,352
6,691
7,034
7,380
7,730
8,084
8,442
8,802
9,167
9,535
9,906
10,280
10,658
11,039
$ / yr
92
114
137
162
187
214
242
271
301
331
363
396
429
464
499
535
571
609
647
686
726
766
807
849
891
934
978
1,022
1,067
1,113
1,159
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
271,102
278,928
286,773
294,634
305,347
313,240
321,147
329,068
337,003
344,950
352,910
360,882
368,865
376,860
384,866
392,883
400,910
408,948
416,996
425,053
433,120
441,197
449,283
457,378
465,482
473,595
481,716
489,846
497,984
506,131
514,285
56.48
49.81
44.81
40.92
38.17
35.60
33.45
31.64
30.09
28.75
27.57
26.54
25.62
24.79
24.05
23.39
22.78
22.23
21.72
21.25
20.82
20.43
20.06
19.71
19.40
19.10
18.82
18.55
18.31
18.08
17.86
68
29,600
30,400
31,200
32,000
1,850
1,900
1,950
2,000
126,656
126,656
126,656
126,656
10,880
10,880
10,880
10,880
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
96,389
98,994
101,599
104,205
167,603
172,132
176,662
181,192
0
0
0
0
14,354
14,840
15,330
15,824
0
0
0
0
11,423
11,810
12,201
12,594
1,206
1,253
1,301
1,349
1,981
2,039
2,096
2,154
1,981
2,039
2,096
2,154
522,448
530,619
538,797
546,984
17.65
17.45
17.27
17.09
Table 24. Cubing Cost with Annual Payment given No Down Payment.
Cubing
Capacity
Tons
Facility
Processing
Time
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
tons / yr
hrs / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
180,938
8,044
8,044
8,044
8,044
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
10,880
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
15,631
18,236
20,841
23,446
26,051
28,656
31,261
33,866
36,472
39,077
41,682
44,287
46,892
49,497
52,102
54,707
57,313
59,918
62,523
65,128
67,733
70,338
72,943
75,548
78,153
80,759
83,364
85,969
88,574
91,179
4,800
5,600
6,400
7,200
8,000
8,800
9,600
10,400
11,200
12,000
12,800
13,600
14,400
15,200
16,000
16,800
17,600
18,400
19,200
20,000
20,800
21,600
22,400
23,200
24,000
24,800
25,600
26,400
27,200
28,000
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
27,179
31,709
36,238
40,768
45,298
49,828
54,358
58,887
63,417
67,947
72,477
77,007
81,536
86,066
90,596
95,126
99,656
104,185
108,715
113,245
117,775
122,305
126,834
131,364
135,894
140,424
144,954
149,483
154,013
158,543
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
13,394
Forklift
Operation
Cost
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
1,301
1,552
1,811
2,077
2,349
2,626
2,910
3,199
3,493
3,792
4,097
4,406
4,719
5,037
5,360
5,686
6,017
6,352
6,691
7,034
7,380
7,730
8,084
8,442
8,802
9,167
9,535
9,906
10,280
10,658
92
114
137
162
187
214
242
271
301
331
363
396
429
464
499
535
571
609
647
686
726
766
807
849
891
934
978
1,022
1,067
1,113
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / ton
325,384
333,210
341,054
348,915
359,628
367,521
375,428
383,349
391,284
399,231
407,191
415,163
423,147
431,142
439,148
447,164
455,192
463,229
471,277
479,335
487,402
495,478
503,564
511,659
519,763
527,876
535,997
544,127
552,265
560,412
67.79
59.50
53.29
48.46
44.95
41.76
39.11
36.86
34.94
33.27
31.81
30.53
29.39
28.36
27.45
26.62
25.86
25.18
24.55
23.97
23.43
22.94
22.48
22.05
21.66
21.29
20.94
20.61
20.30
20.01
69
28,800
29,600
30,400
31,200
32,000
1,800
1,850
1,900
1,950
2,000
180,938
180,938
180,938
180,938
180,938
10,880
10,880
10,880
10,880
10,880
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
93,784
96,389
98,994
101,599
104,205
163,073
167,603
172,132
176,662
181,192
Cubing
System
Operation
Cost
$ / ton
0
0
0
0
0
13,872
14,354
14,840
15,330
15,824
0
0
0
0
0
11,039
11,423
11,810
12,201
12,594
Forklift
Operation
Cost
Front
Loader
Operation
Cost
$ / ton
1,159
1,206
1,253
1,301
1,349
1,924
1,981
2,039
2,096
2,154
1,924
1,981
2,039
2,096
2,154
568,567
576,729
584,900
593,079
601,265
19.74
19.48
19.24
19.01
18.79
Table 25. Compressing Cost per Ton with No Annual Payment.
Compressing
Facility
Capacity
Processing
Tons
Time
tons / yr
4,500
5,250
6,000
6,750
7,500
8,250
9,000
9,750
10,500
11,250
12,000
12,750
13,500
14,250
15,000
15,750
16,500
17,250
18,000
18,750
19,500
20,250
21,000
21,750
22,500
23,250
24,000
24,750
25,500
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / ton
$ / ton
$ / ton
$ / ton
$ / ton
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.28
1.95
1.71
1.52
1.37
1.24
1.14
1.05
0.98
0.91
0.85
0.80
0.76
0.72
0.68
0.65
0.62
0.59
0.57
0.55
0.53
0.51
0.49
0.47
0.46
0.44
0.43
0.41
0.40
2.88
2.47
2.16
1.92
1.73
1.57
1.44
1.33
1.24
1.15
1.08
1.02
0.96
0.91
0.87
0.82
0.79
0.75
0.72
0.69
0.67
0.64
0.62
0.60
0.58
0.56
0.54
0.52
0.51
17.11
14.67
12.83
11.41
10.27
9.33
8.56
7.90
7.33
6.84
6.42
6.04
5.70
5.40
5.13
4.89
4.67
4.46
4.28
4.11
3.95
3.80
3.67
3.54
3.42
3.31
3.21
3.11
3.02
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
4.17
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Compressing
Hay
System
Squeeze
Operation Operation
Cost
Cost
$ / ton
$ / ton
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
6.78
0.36
0.37
0.38
0.39
0.39
0.40
0.41
0.41
0.42
0.42
0.43
0.43
0.44
0.44
0.45
0.45
0.46
0.46
0.47
0.47
0.48
0.48
0.48
0.49
0.49
0.50
0.50
0.50
0.51
$ / ton
0.16
0.16
0.17
0.17
0.18
0.18
0.19
0.19
0.19
0.20
0.20
0.20
0.21
0.21
0.22
0.22
0.22
0.22
0.23
0.23
0.23
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.24
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Telescoping Pickup
Piler #2
Truck #1
Operation Operation
Cost
Cost
$ / ton
$ / ton
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
Pickup
Truck #2
Operation
Cost
$ / ton
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
Total
Processing
Cost
$ / ton
33.87
30.70
28.33
26.49
25.01
23.81
22.81
21.96
21.24
20.61
20.06
19.58
19.15
18.77
18.43
18.12
17.84
17.58
17.35
17.13
16.93
16.75
16.58
16.42
16.27
16.13
16.00
15.88
15.76
70
26,250
27,000
27,750
28,500
29,250
30,000
1,750
1,800
1,850
1,900
1,950
2,000
0.00
0.00
0.00
0.00
0.00
0.00
0.39
0.38
0.37
0.36
0.35
0.34
0.49
0.48
0.47
0.46
0.44
0.43
2.93
2.85
2.77
2.70
2.63
2.57
4.17
4.17
4.17
4.17
4.17
4.17
0.00
0.00
0.00
0.00
0.00
0.00
6.78
6.78
6.78
6.78
6.78
6.78
0.51
0.51
0.52
0.52
0.52
0.53
0.24
0.24
0.24
0.24
0.24
0.24
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
15.66
15.55
15.46
15.37
15.28
15.20
71
Table 26. Compressing Cost with No Annual Payment
Compressing Facility
Capacity
Processing
Tons
Time
tons / yr
4,500
5,250
6,000
6,750
7,500
8,250
9,000
9,750
10,500
11,250
12,000
12,750
13,500
14,250
15,000
15,750
16,500
17,250
18,000
18,750
19,500
20,250
21,000
21,750
22,500
23,250
24,000
24,750
25,500
26,250
27,000
27,750
28,500
29,250
30,000
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$ / yr
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
$ / yr
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
$ / yr
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
$ / yr
18,757
21,883
25,009
28,135
31,261
34,388
37,514
40,640
43,766
46,892
50,018
53,144
56,270
59,397
62,523
65,649
68,775
71,901
75,027
78,153
81,280
84,406
87,532
90,658
93,784
96,910
100,036
103,163
106,289
109,415
112,541
115,667
118,793
121,919
125,045
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
30,503
1,638
0
35,587
1,955
0
40,671
2,280
0
45,755
2,614
0
50,839
2,956
0
55,923
3,305
0
61,006
3,662
0
66,090
4,025
0
71,174
4,395
0
76,258
4,771
0
81,342
5,154
0
86,426
5,542
0
91,510
5,936
0
96,594
6,335
0
101,677
6,740
0
106,761
7,151
0
111,845
7,566
0
116,929
7,987
0
122,013
8,413
0
127,097
8,843
0
132,181
9,278
0
137,265
9,718
0
142,348
10,162
0
147,432
10,611
0
152,516
11,064
0
157,600
11,522
0
162,684
11,984
0
167,768
12,450
0
172,852
12,920
0
177,935
13,394
0
183,019
13,872
0
188,103
14,354
0
193,187
14,840
0
198,271
15,330
0
203,355
15,824
Forklift
Operation
Cost
$ / yr
706
853
1,006
1,165
1,330
1,500
1,674
1,853
2,037
2,225
2,417
2,614
2,814
3,018
3,226
3,437
3,652
3,870
4,092
4,317
4,545
4,777
5,011
5,190
5,369
5,548
5,727
5,906
6,085
6,264
6,443
6,622
6,801
6,980
7,159
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
0
293
0
0
344
0
0
395
0
0
446
0
0
497
0
0
549
0
0
602
0
0
654
0
0
707
0
0
760
0
0
813
0
0
867
0
0
921
0
0
975
0
0
1,029
0
0
1,083
0
0
1,138
0
0
1,193
0
0
1,248
0
0
1,303
0
0
1,359
0
0
1,415
0
0
1,470
0
0
1,526
0
0
1,583
0
0
1,639
0
0
1,696
0
0
1,752
0
0
1,809
0
0
1,866
0
0
1,924
0
0
1,981
0
0
2,039
0
0
2,096
0
0
2,154
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
Total
Processing
Cost
Total
Processing
Cost
$ / yr
152,403
161,178
169,968
178,774
187,594
196,426
205,272
214,130
222,999
231,879
240,770
249,672
258,584
267,506
276,437
285,377
294,327
303,286
312,253
321,229
330,214
339,206
348,207
357,157
366,112
375,071
384,035
393,003
401,976
410,954
419,935
428,921
437,912
446,906
455,905
$ / ton
33.87
30.70
28.33
26.49
25.01
23.81
22.81
21.96
21.24
20.61
20.06
19.58
19.15
18.77
18.43
18.12
17.84
17.58
17.35
17.13
16.93
16.75
16.58
16.42
16.27
16.13
16.00
15.88
15.76
15.66
15.55
15.46
15.37
15.28
15.20
72
Table 27. Compressing Cost with Annual Payment given 70% Down Payment
Compressing Facility
Capacity
Processing
Tons
Time
tons / yr
4,500
5,250
6,000
6,750
7,500
8,250
9,000
9,750
10,500
11,250
12,000
12,750
13,500
14,250
15,000
15,750
16,500
17,250
18,000
18,750
19,500
20,250
21,000
21,750
22,500
23,250
24,000
24,750
25,500
26,250
27,000
27,750
28,500
29,250
30,000
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / yr
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
45,912
$ / yr
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
$ / yr
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
$ / yr
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
$ / yr
18,757
21,883
25,009
28,135
31,261
34,388
37,514
40,640
43,766
46,892
50,018
53,144
56,270
59,397
62,523
65,649
68,775
71,901
75,027
78,153
81,280
84,406
87,532
90,658
93,784
96,910
100,036
103,163
106,289
109,415
112,541
115,667
118,793
121,919
125,045
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
30,503
1,638
0
35,587
1,955
0
40,671
2,280
0
45,755
2,614
0
50,839
2,956
0
55,923
3,305
0
61,006
3,662
0
66,090
4,025
0
71,174
4,395
0
76,258
4,771
0
81,342
5,154
0
86,426
5,542
0
91,510
5,936
0
96,594
6,335
0
101,677
6,740
0
106,761
7,151
0
111,845
7,566
0
116,929
7,987
0
122,013
8,413
0
127,097
8,843
0
132,181
9,278
0
137,265
9,718
0
142,348
10,162
0
147,432
10,611
0
152,516
11,064
0
157,600
11,522
0
162,684
11,984
0
167,768
12,450
0
172,852
12,920
0
177,935
13,394
0
183,019
13,872
0
188,103
14,354
0
193,187
14,840
0
198,271
15,330
0
203,355
15,824
Forklift
Operation
Cost
$ / yr
706
853
1,006
1,165
1,330
1,500
1,674
1,853
2,037
2,225
2,417
2,614
2,814
3,018
3,226
3,437
3,652
3,870
4,092
4,317
4,545
4,777
5,011
5,190
5,369
5,548
5,727
5,906
6,085
6,264
6,443
6,622
6,801
6,980
7,159
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
0
293
0
0
344
0
0
395
0
0
446
0
0
497
0
0
549
0
0
602
0
0
654
0
0
707
0
0
760
0
0
813
0
0
867
0
0
921
0
0
975
0
0
1,029
0
0
1,083
0
0
1,138
0
0
1,193
0
0
1,248
0
0
1,303
0
0
1,359
0
0
1,415
0
0
1,470
0
0
1,526
0
0
1,583
0
0
1,639
0
0
1,696
0
0
1,752
0
0
1,809
0
0
1,866
0
0
1,924
0
0
1,981
0
0
2,039
0
0
2,096
0
0
2,154
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
Total
Processing
Cost
Total
Processing
Cost
$ / yr
198,315
207,090
215,880
224,686
233,506
242,338
251,184
260,042
268,911
277,791
286,682
295,584
304,496
313,418
322,349
331,289
340,239
349,198
358,165
367,141
376,126
385,118
394,119
403,069
412,024
420,983
429,947
438,915
447,888
456,866
465,847
474,833
483,824
492,818
501,817
$ / ton
44.07
39.45
35.98
33.29
31.13
29.37
27.91
26.67
25.61
24.69
23.89
23.18
22.56
21.99
21.49
21.03
20.62
20.24
19.90
19.58
19.29
19.02
18.77
18.53
18.31
18.11
17.91
17.73
17.56
17.40
17.25
17.11
16.98
16.85
16.73
73
Table 28. Compressing Cost with Annual Payment given 50% Down Payment.
Compressing Facility
Capacity
Processing
Tons
Time
tons / yr
4,500
5,250
6,000
6,750
7,500
8,250
9,000
9,750
10,500
11,250
12,000
12,750
13,500
14,250
15,000
15,750
16,500
17,250
18,000
18,750
19,500
20,250
21,000
21,750
22,500
23,250
24,000
24,750
25,500
26,250
27,000
27,750
28,500
29,250
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / yr
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
76,520
$ / yr
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
$ / yr
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
$ / yr
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
$ / yr
18,757
21,883
25,009
28,135
31,261
34,388
37,514
40,640
43,766
46,892
50,018
53,144
56,270
59,397
62,523
65,649
68,775
71,901
75,027
78,153
81,280
84,406
87,532
90,658
93,784
96,910
100,036
103,163
106,289
109,415
112,541
115,667
118,793
121,919
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
30,503
1,638
0
35,587
1,955
0
40,671
2,280
0
45,755
2,614
0
50,839
2,956
0
55,923
3,305
0
61,006
3,662
0
66,090
4,025
0
71,174
4,395
0
76,258
4,771
0
81,342
5,154
0
86,426
5,542
0
91,510
5,936
0
96,594
6,335
0
101,677
6,740
0
106,761
7,151
0
111,845
7,566
0
116,929
7,987
0
122,013
8,413
0
127,097
8,843
0
132,181
9,278
0
137,265
9,718
0
142,348
10,162
0
147,432
10,611
0
152,516
11,064
0
157,600
11,522
0
162,684
11,984
0
167,768
12,450
0
172,852
12,920
0
177,935
13,394
0
183,019
13,872
0
188,103
14,354
0
193,187
14,840
0
198,271
15,330
Forklift
Operation
Cost
$ / yr
706
853
1,006
1,165
1,330
1,500
1,674
1,853
2,037
2,225
2,417
2,614
2,814
3,018
3,226
3,437
3,652
3,870
4,092
4,317
4,545
4,777
5,011
5,190
5,369
5,548
5,727
5,906
6,085
6,264
6,443
6,622
6,801
6,980
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
0
293
0
0
344
0
0
395
0
0
446
0
0
497
0
0
549
0
0
602
0
0
654
0
0
707
0
0
760
0
0
813
0
0
867
0
0
921
0
0
975
0
0
1,029
0
0
1,083
0
0
1,138
0
0
1,193
0
0
1,248
0
0
1,303
0
0
1,359
0
0
1,415
0
0
1,470
0
0
1,526
0
0
1,583
0
0
1,639
0
0
1,696
0
0
1,752
0
0
1,809
0
0
1,866
0
0
1,924
0
0
1,981
0
0
2,039
0
0
2,096
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
Total
Processing
Cost
Total
Processing
Cost
$ / yr
228,923
237,698
246,488
255,294
264,114
272,946
281,792
290,650
299,519
308,399
317,290
326,192
335,104
344,026
352,957
361,897
370,847
379,806
388,773
397,749
406,734
415,726
424,727
433,677
442,632
451,591
460,555
469,523
478,496
487,474
496,455
505,441
514,432
523,426
$ / ton
50.87
45.28
41.08
37.82
35.22
33.08
31.31
29.81
28.53
27.41
26.44
25.58
24.82
24.14
23.53
22.98
22.48
22.02
21.60
21.21
20.86
20.53
20.23
19.94
19.67
19.42
19.19
18.97
18.76
18.57
18.39
18.21
18.05
17.89
74
30,000
2,000
76,520
10,238
12,975
77,000
125,045
0
203,355
15,824
7,159
0
0
2,154
2,154
532,425
17.75
Table 29. Compressing Cost with Annual Payment given 30% Down Payment.
Compressing Facility
Capacity
Processing
Tons
Time
tons / yr
4,500
5,250
6,000
6,750
7,500
8,250
9,000
9,750
10,500
11,250
12,000
12,750
13,500
14,250
15,000
15,750
16,500
17,250
18,000
18,750
19,500
20,250
21,000
21,750
22,500
23,250
24,000
24,750
25,500
26,250
27,000
27,750
28,500
hrs / yr
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / yr
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
107,129
$ / yr
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
$ / yr
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
$ / yr
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
$ / yr
18,757
21,883
25,009
28,135
31,261
34,388
37,514
40,640
43,766
46,892
50,018
53,144
56,270
59,397
62,523
65,649
68,775
71,901
75,027
78,153
81,280
84,406
87,532
90,658
93,784
96,910
100,036
103,163
106,289
109,415
112,541
115,667
118,793
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
30,503
1,638
0
35,587
1,955
0
40,671
2,280
0
45,755
2,614
0
50,839
2,956
0
55,923
3,305
0
61,006
3,662
0
66,090
4,025
0
71,174
4,395
0
76,258
4,771
0
81,342
5,154
0
86,426
5,542
0
91,510
5,936
0
96,594
6,335
0
101,677
6,740
0
106,761
7,151
0
111,845
7,566
0
116,929
7,987
0
122,013
8,413
0
127,097
8,843
0
132,181
9,278
0
137,265
9,718
0
142,348
10,162
0
147,432
10,611
0
152,516
11,064
0
157,600
11,522
0
162,684
11,984
0
167,768
12,450
0
172,852
12,920
0
177,935
13,394
0
183,019
13,872
0
188,103
14,354
0
193,187
14,840
Forklift
Operation
Cost
$ / yr
706
853
1,006
1,165
1,330
1,500
1,674
1,853
2,037
2,225
2,417
2,614
2,814
3,018
3,226
3,437
3,652
3,870
4,092
4,317
4,545
4,777
5,011
5,190
5,369
5,548
5,727
5,906
6,085
6,264
6,443
6,622
6,801
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
0
293
0
0
344
0
0
395
0
0
446
0
0
497
0
0
549
0
0
602
0
0
654
0
0
707
0
0
760
0
0
813
0
0
867
0
0
921
0
0
975
0
0
1,029
0
0
1,083
0
0
1,138
0
0
1,193
0
0
1,248
0
0
1,303
0
0
1,359
0
0
1,415
0
0
1,470
0
0
1,526
0
0
1,583
0
0
1,639
0
0
1,696
0
0
1,752
0
0
1,809
0
0
1,866
0
0
1,924
0
0
1,981
0
0
2,039
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
Total
Processing
Cost
Total
Processing
Cost
$ / yr
259,532
268,307
277,097
285,903
294,723
303,555
312,401
321,259
330,128
339,008
347,899
356,801
365,713
374,635
383,566
392,506
401,456
410,415
419,382
428,358
437,343
446,335
455,336
464,286
473,241
482,200
491,164
500,132
509,105
518,083
527,064
536,050
545,041
$ / ton
57.67
51.11
46.18
42.36
39.30
36.79
34.71
32.95
31.44
30.13
28.99
27.98
27.09
26.29
25.57
24.92
24.33
23.79
23.30
22.85
22.43
22.04
21.68
21.35
21.03
20.74
20.47
20.21
19.96
19.74
19.52
19.32
19.12
75
29,250
30,000
1,950
2,000
107,129
107,129
10,238
10,238
12,975
12,975
77,000
77,000
121,919
125,045
0
0
198,271
203,355
15,330
15,824
6,980
7,159
0
0
0
0
2,096
2,154
2,096
2,154
554,035
563,034
18.94
18.77
Table 30. Compressing Cost with Annual Payment given No Down Payment.
Compressing Facility
Capacity
Processing
Tons
Time
tons / yr
hrs / yr
4,500
5,250
6,000
6,750
7,500
8,250
9,000
9,750
10,500
11,250
12,000
12,750
13,500
14,250
15,000
15,750
16,500
17,250
18,000
18,750
19,500
20,250
21,000
21,750
22,500
23,250
24,000
24,750
25,500
26,250
27,000
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
153,041
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
10,238
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
18,757
21,883
25,009
28,135
31,261
34,388
37,514
40,640
43,766
46,892
50,018
53,144
56,270
59,397
62,523
65,649
68,775
71,901
75,027
78,153
81,280
84,406
87,532
90,658
93,784
96,910
100,036
103,163
106,289
109,415
112,541
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30,503
35,587
40,671
45,755
50,839
55,923
61,006
66,090
71,174
76,258
81,342
86,426
91,510
96,594
101,677
106,761
111,845
116,929
122,013
127,097
132,181
137,265
142,348
147,432
152,516
157,600
162,684
167,768
172,852
177,935
183,019
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
13,394
13,872
Forklift
Operation
Cost
$ / yr
706
853
1,006
1,165
1,330
1,500
1,674
1,853
2,037
2,225
2,417
2,614
2,814
3,018
3,226
3,437
3,652
3,870
4,092
4,317
4,545
4,777
5,011
5,190
5,369
5,548
5,727
5,906
6,085
6,264
6,443
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
Pickup
Truck #2
Operation
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
1,866
1,924
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / ton
305,444
314,219
323,009
331,815
340,635
349,467
358,313
367,171
376,040
384,920
393,811
402,713
411,625
420,547
429,478
438,418
447,368
456,327
465,294
474,270
483,255
492,247
501,248
510,198
519,153
528,112
537,076
546,044
555,017
563,995
572,976
67.88
59.85
53.83
49.16
45.42
42.36
39.81
37.66
35.81
34.22
32.82
31.59
30.49
29.51
28.63
27.84
27.11
26.45
25.85
25.29
24.78
24.31
23.87
23.46
23.07
22.71
22.38
22.06
21.77
21.49
21.22
76
27,750
28,500
29,250
30,000
1,850
1,900
1,950
2,000
153,041
153,041
153,041
153,041
10,238
10,238
10,238
10,238
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
115,667
118,793
121,919
125,045
0
0
0
0
188,103
193,187
198,271
203,355
14,354
14,840
15,330
15,824
6,622
6,801
6,980
7,159
0
0
0
0
0
0
0
0
1,981
2,039
2,096
2,154
1,981
2,039
2,096
2,154
581,962
590,953
599,947
608,946
20.97
20.74
20.51
20.30
Table 31. Mixed Cubing and Compressing Cost per Ton with No Annual Payment. (Cubing Time: 50%, Compressing Time: 50%)
Mixed
Facility
Cubing and Processing
Compressing
Time
Capacity
Tons
tons / yr
hrs / yr
4,650
300
5,425
350
6,200
400
6,975
450
7,750
500
8,525
550
9,300
600
10,075
650
10,850
700
11,625
750
12,400
800
13,175
850
13,950
900
14,725
950
15,500
1,000
16,275
1,050
17,050
1,100
17,825
1,150
18,600
1,200
19,375
1,250
20,150
1,300
20,925
1,350
21,700
1,400
22,475
1,450
23,250
1,500
24,025
1,550
24,800
1,600
25,575
1,650
26,350
1,700
27,125
1,750
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / ton
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$ / ton
2.34
2.01
1.76
1.56
1.41
1.28
1.17
1.08
1.00
0.94
0.88
0.83
0.78
0.74
0.70
0.67
0.64
0.61
0.59
0.56
0.54
0.52
0.50
0.49
0.47
0.45
0.44
0.43
0.41
0.40
$ / ton
2.79
2.39
2.09
1.86
1.67
1.52
1.40
1.29
1.20
1.12
1.05
0.98
0.93
0.88
0.84
0.80
0.76
0.73
0.70
0.67
0.64
0.62
0.60
0.58
0.56
0.54
0.52
0.51
0.49
0.48
$ / ton
16.56
14.19
12.42
11.04
9.94
9.03
8.28
7.64
7.10
6.62
6.21
5.84
5.52
5.23
4.97
4.73
4.52
4.32
4.14
3.97
3.82
3.68
3.55
3.43
3.31
3.20
3.10
3.01
2.92
2.84
$ / ton
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
3.70
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / ton
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
2.92
$ / ton
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
3.28
$ / ton
0.35
0.36
0.37
0.37
0.38
0.39
0.39
0.40
0.41
0.41
0.42
0.42
0.43
0.43
0.43
0.44
0.44
0.45
0.45
0.46
0.46
0.46
0.47
0.47
0.48
0.48
0.48
0.49
0.49
0.49
Forklift
Operation
Cost
$ / ton
0.08
0.08
0.08
0.08
0.09
0.09
0.09
0.09
0.09
0.10
0.10
0.10
0.10
0.10
0.10
0.11
0.11
0.11
0.11
0.11
0.11
0.11
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / ton
0.14
0.14
0.15
0.15
0.15
0.15
0.16
0.16
0.16
0.16
0.17
0.17
0.17
0.17
0.17
0.17
0.18
0.18
0.18
0.18
0.18
0.18
0.19
0.19
0.19
0.19
0.19
0.19
0.20
0.20
$ / ton
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
$ / ton
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
Pickup
Truck #2
Operation
Cost
Total
Processing
Cost
$ / ton
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
$ / ton
32.30
29.21
26.90
25.11
23.68
22.50
21.53
20.71
20.00
19.39
18.86
18.39
17.97
17.60
17.27
16.97
16.69
16.45
16.22
16.01
15.82
15.64
15.47
15.32
15.17
15.04
14.91
14.80
14.69
14.58
77
27,900
28,675
29,450
30,225
31,000
1,800
1,850
1,900
1,950
2,000
0.00
0.00
0.00
0.00
0.00
0.39
0.38
0.37
0.36
0.35
0.47
0.45
0.44
0.43
0.42
2.76
2.69
2.61
2.55
2.48
3.70
3.70
3.70
3.70
3.70
2.92
2.92
2.92
2.92
2.92
3.28
3.28
3.28
3.28
3.28
0.50
0.50
0.50
0.51
0.51
0.12
0.12
0.12
0.12
0.12
0.20
0.20
0.20
0.20
0.20
0.02
0.02
0.02
0.02
0.02
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
0.07
14.48
14.39
14.30
14.22
14.14
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
Pickup
Truck #2
Operation
Cost
Total
Processing
Cost
Total
Processing
Cost
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
$ / yr
150,187
158,487
166,805
175,138
183,487
191,850
200,226
208,615
217,017
225,431
233,857
242,293
250,741
259,199
267,668
276,147
284,635
293,134
301,641
310,158
318,684
327,218
335,762
344,284
352,813
361,349
369,892
378,441
386,997
$ / ton
32.30
29.21
26.90
25.11
23.68
22.50
21.53
20.71
20.00
19.39
18.86
18.39
17.97
17.60
17.27
16.97
16.69
16.45
16.22
16.01
15.82
15.64
15.47
15.32
15.17
15.04
14.91
14.80
14.69
Table 32. Mixed Cubing and Compressing Cost with No Annual Payment. (Cubing Time: 50%, Compressing Time: 50%)
Mixed
Facility
Cubing and Processing
Compressing
Time
Capacity
Tons
tons / yr
hrs / yr
4,650
300
5,425
350
6,200
400
6,975
450
7,750
500
8,525
550
9,300
600
10,075
650
10,850
700
11,625
750
12,400
800
13,175
850
13,950
900
14,725
950
15,500
1,000
16,275
1,050
17,050
1,100
17,825
1,150
18,600
1,200
19,375
1,250
20,150
1,300
20,925
1,350
21,700
1,400
22,475
1,450
23,250
1,500
24,025
1,550
24,800
1,600
25,575
1,650
26,350
1,700
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
$ / yr
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$ / yr
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
$ / yr
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
$ / yr
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
$ / yr
17,194
20,059
22,925
25,791
28,656
31,522
34,388
37,253
40,119
42,984
45,850
48,716
51,581
54,447
57,313
60,178
63,044
65,909
68,775
71,641
74,506
77,372
80,238
83,103
85,969
88,834
91,700
94,566
97,431
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
13,589
15,854
18,119
20,384
22,649
24,914
27,179
29,444
31,709
33,974
36,238
38,503
40,768
43,033
45,298
47,563
49,828
52,093
54,358
56,623
58,887
61,152
63,417
65,682
67,947
70,212
72,477
74,742
77,007
$ / yr
15,252
17,794
20,335
22,877
25,419
27,961
30,503
33,045
35,587
38,129
40,671
43,213
45,755
48,297
50,839
53,381
55,923
58,465
61,006
63,548
66,090
68,632
71,174
73,716
76,258
78,800
81,342
83,884
86,426
$ / yr
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
12,450
12,920
Forklift
Operation
Cost
$ / yr
353
426
503
583
665
750
837
927
1,018
1,113
1,209
1,307
1,407
1,509
1,613
1,718
1,826
1,935
2,046
2,158
2,273
2,388
2,506
2,595
2,685
2,774
2,864
2,953
3,043
$ / yr
650
776
906
1,038
1,174
1,313
1,455
1,599
1,747
1,896
2,048
2,203
2,360
2,519
2,680
2,843
3,009
3,176
3,345
3,517
3,690
3,865
4,042
4,221
4,401
4,583
4,767
4,953
5,140
$ / yr
46
57
69
81
94
107
121
135
150
166
182
198
215
232
249
267
286
304
324
343
363
383
404
424
446
467
489
511
534
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
1,752
1,809
78
27,125
27,900
28,675
29,450
30,225
31,000
1,750
1,800
1,850
1,900
1,950
2,000
0
0
0
0
0
0
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
100,297
103,163
106,028
108,894
111,759
114,625
79,272
81,536
83,801
86,066
88,331
90,596
88,968
91,510
94,052
96,594
99,135
101,677
13,394
13,872
14,354
14,840
15,330
15,824
3,132
3,222
3,311
3,400
3,490
3,579
5,329
5,520
5,712
5,905
6,100
6,297
556
579
603
626
650
675
1,866
1,924
1,981
2,039
2,096
2,154
1,866
1,924
1,981
2,039
2,096
2,154
395,559
404,127
412,701
421,282
429,868
438,461
14.58
14.48
14.39
14.30
14.22
14.14
Table 33. . Mixed Cubing and Compressing Cost with Annual Payment given 70% Down Payment. (Cubing Time: 50%, Compressing Time: 50%)
Mixed
Facility
Cubing and Processing
Compressing
Time
Capacity
Tons
tons / yr
hrs / yr
4,650
5,425
6,200
6,975
7,750
8,525
9,300
10,075
10,850
11,625
12,400
13,175
13,950
14,725
15,500
16,275
17,050
17,825
18,600
19,375
20,150
20,925
21,700
22,475
23,250
24,025
24,800
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
1,600
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
17,194
20,059
22,925
25,791
28,656
31,522
34,388
37,253
40,119
42,984
45,850
48,716
51,581
54,447
57,313
60,178
63,044
65,909
68,775
71,641
74,506
77,372
80,238
83,103
85,969
88,834
91,700
13,589
15,854
18,119
20,384
22,649
24,914
27,179
29,444
31,709
33,974
36,238
38,503
40,768
43,033
45,298
47,563
49,828
52,093
54,358
56,623
58,887
61,152
63,417
65,682
67,947
70,212
72,477
15,252
17,794
20,335
22,877
25,419
27,961
30,503
33,045
35,587
38,129
40,671
43,213
45,755
48,297
50,839
53,381
55,923
58,465
61,006
63,548
66,090
68,632
71,174
73,716
76,258
78,800
81,342
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
11,984
Forklift
Operation
Cost
$ / yr
353
426
503
583
665
750
837
927
1,018
1,113
1,209
1,307
1,407
1,509
1,613
1,718
1,826
1,935
2,046
2,158
2,273
2,388
2,506
2,595
2,685
2,774
2,864
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
650
776
906
1,038
1,174
1,313
1,455
1,599
1,747
1,896
2,048
2,203
2,360
2,519
2,680
2,843
3,009
3,176
3,345
3,517
3,690
3,865
4,042
4,221
4,401
4,583
4,767
$ / yr
46
57
69
81
94
107
121
135
150
166
182
198
215
232
249
267
286
304
324
343
363
383
404
424
446
467
489
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
Pickup
Truck #2
Operation
Cost
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / yr
$ / ton
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
1,696
227,286
235,587
243,904
252,238
260,586
268,949
277,325
285,715
294,117
302,530
310,956
319,393
327,841
336,299
344,768
353,246
361,735
370,233
378,741
387,257
395,783
404,318
412,861
421,383
429,913
438,449
446,991
48.88
43.43
39.34
36.16
33.62
31.55
29.82
28.36
27.11
26.02
25.08
24.24
23.50
22.84
22.24
21.70
21.22
20.77
20.36
19.99
19.64
19.32
19.03
18.75
18.49
18.25
18.02
79
25,575
26,350
27,125
27,900
28,675
29,450
30,225
31,000
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
77,099
77,099
77,099
77,099
77,099
77,099
77,099
77,099
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
94,566
97,431
100,297
103,163
106,028
108,894
111,759
114,625
74,742
77,007
79,272
81,536
83,801
86,066
88,331
90,596
83,884
86,426
88,968
91,510
94,052
96,594
99,135
101,677
12,450
12,920
13,394
13,872
14,354
14,840
15,330
15,824
2,953
3,043
3,132
3,222
3,311
3,400
3,490
3,579
4,953
5,140
5,329
5,520
5,712
5,905
6,100
6,297
511
534
556
579
603
626
650
675
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
455,541
464,096
472,658
481,226
489,801
498,381
506,968
515,560
17.81
17.61
17.43
17.25
17.08
16.92
16.77
16.63
Table 34. Mixed Cubing and Compressing Cost with Annual Payment given 50% Down Payment. (Cubing Time: 50%, Compressing Time: 50%)
Mixed
Facility
Cubing and Processing
Compressing
Time
Capacity
Tons
tons / yr
hrs / yr
4,650
5,425
6,200
6,975
7,750
8,525
9,300
10,075
10,850
11,625
12,400
13,175
13,950
14,725
15,500
16,275
17,050
17,825
18,600
19,375
20,150
20,925
21,700
22,475
23,250
24,025
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
1,550
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
17,194
20,059
22,925
25,791
28,656
31,522
34,388
37,253
40,119
42,984
45,850
48,716
51,581
54,447
57,313
60,178
63,044
65,909
68,775
71,641
74,506
77,372
80,238
83,103
85,969
88,834
13,589
15,854
18,119
20,384
22,649
24,914
27,179
29,444
31,709
33,974
36,238
38,503
40,768
43,033
45,298
47,563
49,828
52,093
54,358
56,623
58,887
61,152
63,417
65,682
67,947
70,212
15,252
17,794
20,335
22,877
25,419
27,961
30,503
33,045
35,587
38,129
40,671
43,213
45,755
48,297
50,839
53,381
55,923
58,465
61,006
63,548
66,090
68,632
71,174
73,716
76,258
78,800
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
11,522
Forklift
Operation
Cost
$ / yr
353
426
503
583
665
750
837
927
1,018
1,113
1,209
1,307
1,407
1,509
1,613
1,718
1,826
1,935
2,046
2,158
2,273
2,388
2,506
2,595
2,685
2,774
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
650
776
906
1,038
1,174
1,313
1,455
1,599
1,747
1,896
2,048
2,203
2,360
2,519
2,680
2,843
3,009
3,176
3,345
3,517
3,690
3,865
4,042
4,221
4,401
4,583
$ / yr
46
57
69
81
94
107
121
135
150
166
182
198
215
232
249
267
286
304
324
343
363
383
404
424
446
467
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
Pickup
Truck #2
Operation
Cost
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / yr
$ / ton
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
1,639
278,686
286,986
295,304
303,637
311,986
320,349
328,725
337,114
345,516
353,930
362,356
370,792
379,240
387,698
396,167
404,646
413,134
421,633
430,140
438,657
447,183
455,717
464,261
472,783
481,312
489,848
59.93
52.90
47.63
43.53
40.26
37.58
35.35
33.46
31.84
30.45
29.22
28.14
27.19
26.33
25.56
24.86
24.23
23.65
23.13
22.64
22.19
21.78
21.39
21.04
20.70
20.39
80
24,800
25,575
26,350
27,125
27,900
28,675
29,450
30,225
31,000
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
128,499
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
91,700
94,566
97,431
100,297
103,163
106,028
108,894
111,759
114,625
72,477
74,742
77,007
79,272
81,536
83,801
86,066
88,331
90,596
81,342
83,884
86,426
88,968
91,510
94,052
96,594
99,135
101,677
11,984
12,450
12,920
13,394
13,872
14,354
14,840
15,330
15,824
2,864
2,953
3,043
3,132
3,222
3,311
3,400
3,490
3,579
4,767
4,953
5,140
5,329
5,520
5,712
5,905
6,100
6,297
489
511
534
556
579
603
626
650
675
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
498,391
506,940
515,496
524,058
532,626
541,200
549,781
558,367
566,960
20.10
19.82
19.56
19.32
19.09
18.87
18.67
18.47
18.29
Table 35. Mixed Cubing and Compressing Cost with Annual Payment given 30% Down Payment. (Cubing Time: 50%, Compressing Time: 50%)
Mixed
Facility
Cubing and Processing
Compressing
Time
Capacity
Tons
tons / yr
hrs / yr
4,650
5,425
6,200
6,975
7,750
8,525
9,300
10,075
10,850
11,625
12,400
13,175
13,950
14,725
15,500
16,275
17,050
17,825
18,600
19,375
20,150
20,925
21,700
22,475
23,250
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
17,194
20,059
22,925
25,791
28,656
31,522
34,388
37,253
40,119
42,984
45,850
48,716
51,581
54,447
57,313
60,178
63,044
65,909
68,775
71,641
74,506
77,372
80,238
83,103
85,969
13,589
15,854
18,119
20,384
22,649
24,914
27,179
29,444
31,709
33,974
36,238
38,503
40,768
43,033
45,298
47,563
49,828
52,093
54,358
56,623
58,887
61,152
63,417
65,682
67,947
15,252
17,794
20,335
22,877
25,419
27,961
30,503
33,045
35,587
38,129
40,671
43,213
45,755
48,297
50,839
53,381
55,923
58,465
61,006
63,548
66,090
68,632
71,174
73,716
76,258
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
11,064
Forklift
Operation
Cost
$ / yr
353
426
503
583
665
750
837
927
1,018
1,113
1,209
1,307
1,407
1,509
1,613
1,718
1,826
1,935
2,046
2,158
2,273
2,388
2,506
2,595
2,685
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
650
776
906
1,038
1,174
1,313
1,455
1,599
1,747
1,896
2,048
2,203
2,360
2,519
2,680
2,843
3,009
3,176
3,345
3,517
3,690
3,865
4,042
4,221
4,401
$ / yr
46
57
69
81
94
107
121
135
150
166
182
198
215
232
249
267
286
304
324
343
363
383
404
424
446
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
Pickup
Truck #2
Operation
Cost
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / yr
$ / ton
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
1,583
330,085
338,386
346,703
355,037
363,385
371,748
380,125
388,514
396,916
405,330
413,755
422,192
430,640
439,098
447,567
456,045
464,534
473,032
481,540
490,057
498,582
507,117
515,660
524,183
532,712
70.99
62.38
55.92
50.90
46.89
43.61
40.87
38.56
36.58
34.87
33.37
32.04
30.87
29.82
28.88
28.02
27.25
26.54
25.89
25.29
24.74
24.23
23.76
23.32
22.91
81
24,025
24,800
25,575
26,350
27,125
27,900
28,675
29,450
30,225
31,000
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
179,899
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
88,834
91,700
94,566
97,431
100,297
103,163
106,028
108,894
111,759
114,625
70,212
72,477
74,742
77,007
79,272
81,536
83,801
86,066
88,331
90,596
78,800
81,342
83,884
86,426
88,968
91,510
94,052
96,594
99,135
101,677
11,522
11,984
12,450
12,920
13,394
13,872
14,354
14,840
15,330
15,824
2,774
2,864
2,953
3,043
3,132
3,222
3,311
3,400
3,490
3,579
4,583
4,767
4,953
5,140
5,329
5,520
5,712
5,905
6,100
6,297
467
489
511
534
556
579
603
626
650
675
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
541,248
549,791
558,340
566,895
575,457
584,026
592,600
601,180
609,767
618,359
22.53
22.17
21.83
21.51
21.22
20.93
20.67
20.41
20.17
19.95
Table 36. Mixed Cubing and Compressing Cost with Annual Payment given No Down Payment. (Cubing Time: 50%, Compressing Time: 50%)
Mixed
Facility
Cubing and Processing
Compressing
Time
Capacity
Tons
tons / yr
hrs / yr
4,650
5,425
6,200
6,975
7,750
8,525
9,300
10,075
10,850
11,625
12,400
13,175
13,950
14,725
15,500
16,275
17,050
17,825
18,600
19,375
20,150
20,925
21,700
22,475
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
Annual
Payment
Property
Taxes
Insurance
Cost
Salary
Labor
Cost
Hourly
Labor
Cost
Cubing Compressing
Hay
System
System
Squeeze
Operation
Operation
Operation
Cost
Cost
Cost
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
$ / yr
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
17,194
20,059
22,925
25,791
28,656
31,522
34,388
37,253
40,119
42,984
45,850
48,716
51,581
54,447
57,313
60,178
63,044
65,909
68,775
71,641
74,506
77,372
80,238
83,103
13,589
15,854
18,119
20,384
22,649
24,914
27,179
29,444
31,709
33,974
36,238
38,503
40,768
43,033
45,298
47,563
49,828
52,093
54,358
56,623
58,887
61,152
63,417
65,682
15,252
17,794
20,335
22,877
25,419
27,961
30,503
33,045
35,587
38,129
40,671
43,213
45,755
48,297
50,839
53,381
55,923
58,465
61,006
63,548
66,090
68,632
71,174
73,716
1,638
1,955
2,280
2,614
2,956
3,305
3,662
4,025
4,395
4,771
5,154
5,542
5,936
6,335
6,740
7,151
7,566
7,987
8,413
8,843
9,278
9,718
10,162
10,611
Forklift
Operation
Cost
$ / yr
353
426
503
583
665
750
837
927
1,018
1,113
1,209
1,307
1,407
1,509
1,613
1,718
1,826
1,935
2,046
2,158
2,273
2,388
2,506
2,595
Front
Telescoping
Pickup
Loader
Piler #2
Truck #1
Operation Operation Operation
Cost
Cost
Cost
$ / yr
650
776
906
1,038
1,174
1,313
1,455
1,599
1,747
1,896
2,048
2,203
2,360
2,519
2,680
2,843
3,009
3,176
3,345
3,517
3,690
3,865
4,042
4,221
$ / yr
46
57
69
81
94
107
121
135
150
166
182
198
215
232
249
267
286
304
324
343
363
383
404
424
$ / yr
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
Pickup
Truck #2
Operation
Cost
Total
Processing
Cost
Total
Processing
Cost
$ / yr
$ / yr
$ / ton
293
344
395
446
497
549
602
654
707
760
813
867
921
975
1,029
1,083
1,138
1,193
1,248
1,303
1,359
1,415
1,470
1,526
407,185
415,485
423,803
432,136
440,485
448,848
457,224
465,613
474,015
482,429
490,855
499,291
507,739
516,197
524,666
533,145
541,633
550,132
558,639
567,156
575,682
584,216
592,760
601,282
87.57
76.59
68.36
61.96
56.84
52.65
49.16
46.21
43.69
41.50
39.59
37.90
36.40
35.06
33.85
32.76
31.77
30.86
30.03
29.27
28.57
27.92
27.32
26.75
82
23,250
24,025
24,800
25,575
26,350
27,125
27,900
28,675
29,450
30,225
31,000
1,500
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
256,998
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
10,903
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
12,975
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
77,000
85,969
88,834
91,700
94,566
97,431
100,297
103,163
106,028
108,894
111,759
114,625
67,947
70,212
72,477
74,742
77,007
79,272
81,536
83,801
86,066
88,331
90,596
76,258
78,800
81,342
83,884
86,426
88,968
91,510
94,052
96,594
99,135
101,677
11,064
11,522
11,984
12,450
12,920
13,394
13,872
14,354
14,840
15,330
15,824
2,685
2,774
2,864
2,953
3,043
3,132
3,222
3,311
3,400
3,490
3,579
4,401
4,583
4,767
4,953
5,140
5,329
5,520
5,712
5,905
6,100
6,297
446
467
489
511
534
556
579
603
626
650
675
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
1,583
1,639
1,696
1,752
1,809
1,866
1,924
1,981
2,039
2,096
2,154
609,811
618,347
626,890
635,439
643,995
652,557
661,125
669,699
678,280
686,866
695,459
26.23
25.74
25.28
24.85
24.44
24.06
23.70
23.35
23.03
22.73
22.43
83
Table 37. Road Mileage
Destination
Road
Miles
California
Central Valley
South Valley
Southern
Oakland
420
620
660
510
Oregon
Portland
653
Washington
Seattle
776
Kansas
Kansas City
1,331
Missouri
St Louis
1,586
Illinois
Chicago
1,642
Tennessee
Memphis
1,800
Kentucky
Louisville
1,845
Louisiana
Baton Rouge
1,909
Florida
Lake City
2,428
84
Table 38. Transportation Cost per Load excluding Transfer and Handling Cost
Standard Bales
Truck
Flatbed
$ / Load
Rail 50'
Box Car
$ / Load
Rail 60'
Box Car
$ / Load
1,071
1,173
1,275
N/A
1,150
1,150
1,150
1,150
1,450
1,450
1,450
1,450
1,156
1,450
1,373
Kansas
Kansas City
California
Central Valley
South Valley
Southern
Oakland
Truck
Container
$ / Load
Truck
Hopper
$ / Load
Rail
Container
$ / Load
Rail
Hopper
$ / Load
Truck
Flatbed
$ / Load
1,750
1,750
1,750
1,750
1,071
1,173
1,275
N/A
Truck
Container
$ / Load
Rail
Container
$ / Load
Rail 50'
Box Car
$ / Load
Rail 60'
Box Car
$ / Load
1,150
1,150
1,150
1,150
1,450
1,450
1,450
1,450
874
918
1,071
1,173
969
1,750
N/A
N/A
N/A
2,050
1,156
N/A
N/A
1,450
1,750
1,525
1,825
N/A
N/A
N/A
2,150
1,373
N/A
N/A
1,525
1,825
2,355
1,664
1,964
N/A
N/A
N/A
2,887
2,355
N/A
N/A
1,664
1,964
Missouri
St Louis
2,807
1,772
2,072
N/A
N/A
N/A
2,807
N/A
N/A
1,772
2,072
Illinois
Chicago
2,906
1,908
2,280
N/A
N/A
N/A
2,906
N/A
N/A
1,908
2,280
Tennessee
Memphis/1
3,185
1,908
2,208
N/A
N/A
N/A
3,185
N/A
N/A
1,908
2,208
Kentucky
Louisville
3,188
N/A
N/A
N/A
3,188
N/A
N/A
N/A
N/A
N/A
3,378
N/A
N/A
2,097
2,397
N/A
N/A
N/A
4,297
N/A
N/A
3,118
Oregon
Portland
(all Stations)
Washington
Seattle
(all Stations)
Louisiana
Baton Rouge
Florida
Lake City/2
N/A
4,550
N/A
N/A
969
(all Stations)
3,378
2,097
4,297
3,118
2,397
85
1. Hopper car rate is an estimate furnished by Southern Pacific Railroad all other rates are based on Union Pacific Railroad Tariffs. 2. This rate is a combination of the tariff to Memphis Tennessee and from there to Lake
City Florida
Table 39. Transportation Cost per Ton excluding Transfer and Handling Cost.
Standard Bales
Truck
Flatbed
$ / ton
Rail 50'
Box Car
$ / ton
Rail 60'
Box Car
$ / ton
42
46
50
N/A
33
33
33
33
35
35
35
35
45
41
43
54
44
45
N/A
92
48
48
Missouri
St Louis
110
51
Illinois
Chicago
114
Tennessee
Memphis/1
125
Kentucky
Louisville
125
California
Central Valley
South Valley
Southern
Oakland
Oregon
Portland
(all Stations)
Washington
Seattle
(all Stations)
Kansas
Kansas City
Louisiana
Baton Rouge
Florida
Lake City/2
Truck
Container
$ / ton
Rail
Hopper
$ / ton
Truck
Flatbed
$ / ton
26
26
26
26
42
46
50
N/A
N/A
30
45
N/A
N/A
N/A
32
54
N/A
N/A
N/A
42
51
N/A
N/A
55
56
N/A
N/A
55
54
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
38
Truck
Hopper
$ / ton
Rail
Container
$ / ton
Rail 50'
Box Car
$ / ton
Rail 60'
Box Car
$ / ton
21
21
21
21
23
23
23
23
N/A
26
27
N/A
N/A
28
29
92
N/A
N/A
30
31
N/A
110
N/A
N/A
32
32
N/A
114
N/A
N/A
35
36
125
N/A
N/A
35
35
125
N/A
N/A
130
N/A
N/A
38
37
169
N/A
N/A
57
36
42
46
38
67
Truck
Container
$ / ton
N/A
Rail
Container
$ / ton
N/A
38
(all Stations)
132
60
169
89
58
N/A
86
1. Hopper car rate is based on an estimate furnished by Southern Pacific Railroad all other rates are based on Union Pacific Railroad Tariffs. 2. Boxcar rate is based on a combination of the tariff to Memphis Tennessee
and from there to Lake City Florida.
Table 40. Transportation Cost per Ton including Transfer and Handling Cost of $10 per Ton for Rail Freight
Standard Bales
Truck
Flatbed
$ / ton
Rail 50'
Box Car
$ / ton
Rail 60'
Box Car
$ / ton
42
46
50
N/A
43
43
43
43
45
45
45
45
45
51
53
54
54
55
N/A
92
58
58
Missouri
St Louis
110
61
Illinois
Chicago
114
Tennessee
Memphis/1
125
Kentucky
Louisville
125
California
Central Valley
South Valley
Southern
Oakland
Oregon
Portland
(all Stations)
Washington
Seattle
(all Stations)
Kansas
Kansas City
Louisiana
Baton Rouge
Truck
Container
$ / ton
Rail
Hopper
$ / ton
Truck
Flatbed
$ / ton
36
36
36
36
42
46
50
N/A
N/A
40
45
N/A
N/A
N/A
42
54
N/A
N/A
N/A
52
61
N/A
N/A
65
66
N/A
N/A
65
64
N/A
N/A
N/A
N/A
N/A
N/A
N/A
38
Truck
Hopper
$ / ton
Rail
Container
$ / ton
Rail 50'
Box Car
$ / ton
Rail 60'
Box Car
$ / ton
31
31
31
31
33
33
33
33
N/A
36
37
N/A
N/A
38
39
92
N/A
N/A
40
41
N/A
110
N/A
N/A
42
42
N/A
114
N/A
N/A
45
46
125
N/A
N/A
45
45
125
N/A
N/A
132
N/A
N/A
48
47
36
42
46
38
77
Truck
Container
$ / ton
N/A
Rail
Container
$ / ton
N/A
38
(all Stations)
132
70
68
N/A
Florida
87
Lake City/2
169
99
N/A
N/A
169
N/A
N/A
67
1. Hopper car rate is based on an estimate furnished by Southern Pacific Railroad all other rates are based on Union Pacific Railroad Tariffs. 2. Boxcar rate is based on a combination of the tariff to Memphis Tennessee
and from there to Lake City Florida.
88
Table 41. Hay Freight Capacity
Capacity
cu-ft
Payload
tons
Standard Bales
Flatbed Truck /1
Rail 50' Box Car /2
Rail 60' Box Car /2
N/A
4,949
6,464
25.5
35
41
Cubes
Truck 40' Container /3
Truck Hopper /1
Rail 40' Container /3
Rail Covered Hopper Car /4
2,498
N/A
2,498
4,750
25.5
25.5
25.5
68
Compressed Bales
Flatbed Truck /1
Truck 40' Container /3
Rail 40' Container /3
Rail 50' Box Car /2
Rail 60' Box Car /2
N/A
2,498
2,498
4,949
6,464
25.5
25.5
25.5
55
64
1. Over the road truck loads are constrained by legal weight limits
2. Boxcar loads are determined by multiplying average cubic foot weight of hay hay times the average volumes of
boxcars furnished by Union Pacific Railroad
3. Due to weight limits, on the over land portion of shipment, these loads may average closer to 23 tons.
4. Covered hopper car loads are based on information furnished by Union Pacific Representatives if calculated at
29.5 cu.ft. times maximum volume of 4,750 cu.ft. this would be 70 tons
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Table 42. Hay Weight
Weight per Volume
Low
High
lbs / cu-ft lbs / cu-ft
Alfalfa Hay Standard Bales
Average
lbs / cu-ft
20'
Shipping
Container
Metric Tons
40'
Shipping
Container
Metric Tons
10.5
15
12.75
5
10
Alfalfa Hay Compressed
Bales
20
28
24
8
21
Alfalfa Hay Cubes
26
33
29.5
13
23
Timothy Grass Hay Standard
Bales
5
9
Timothy Grass Hay
Compressed Bales
8
18
1. Metric ton is equal to 2,204.6 lbs. This information is based on National Hay Association data
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