Case Study of Operational Cost of Tractors in Three Standard Establishments in Nigeria

Abstract

The cost of operating tractors in three different farms was investigated. Data were collected for six years on a total of
112 tractors. The data was categorized into different costs constituting cost of operating tractors such as repair and
maintenance; fuel and lubricants; operator’s wages; interest; insurance, taxes and shelter costs. Different formulae
were used to analyze these operating costs. The results showed that Farm 1 has the highest values while Farm 2 has
the lowest. It can be concluded that the cost of operating tractors in small scale farm (10 ha) on the annual average
is N84, 0000; N110, 000 in the large scale farm (50ha) and N712, 000 in the industrial scale farm (200ha).