Planning for a Farm Storage Building

Author: Susan Wood Gay, Assistant Professor and Extension Engineer, Biological Systems Engineering Department; and Robert "Bobby" Grisso, Professor and Extension Engineer, Biological Systems Engineering Department; Virginia Tech.

Publication Number 442-760, May 2002

Table 6. Calculation of the net annual savings created by storing several pieces of farm machinery.

  Example EquipmentYour Equipment
Two 100-hp tractors = 2 x $50,000 = $100,000 = $
Combine   = $100,000 = $
Cotton picker  = $165,000 = $
Hay baler (round)   = $15,000 = $
Total initial cost of equipment   = $380,000 = $
Total equipment value at resale (after 5 years) = 0.50 x $380,000 = $190,000 = $
Total annual savings on stored equipment = 0.03 x $190,000 = $5,700 = $
Total annual cost of building  = $2,600 = $
Net annual savings = $5,700 - $2,600 = $3,100 = $

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