The cost per hectare shows how much the farm spends to perform an operation and deliver output per area worked. When that figure increases, there is almost always an operational cause behind it. It may be due to idle time, improper settings, maintenance downtime, input wastage or low working capacity of the agricultural machinery.
In this article, you will see what makes up the cost per hectare, how to calculate this index in practice and which actions help to reduce it on the farm.
What is cost per hectare, and why does it increase in practice?
Cost per hectare is the sum of the costs required to perform an activity divided by the area worked. It increases when the operation loses efficiency. This often happens for three reasons:
- Low operational capacity: the agricultural machine is working, but delivers low output per hour due to delayed manoeuvres, unnecessary travel, poorly planned supply, and avoidable stoppages.
- Waste: overlapping, application failure and misadjustment increase consumption and lead to rework. Reworks costs fuel, time and component wear,
- the unavailability of agricultural machinery, caused by unexpected downtime, increases maintenance costs, disrupts the optimal operating window, and forces rushed decision-making in the field.
How to calculate the cost per hectare in agricultural machinery operations?
To maintain effective control of the cost per hectare, the first step is to measure it accurately. This monitoring does not require complex systems. Regular use of a simple calculation helps pinpoint efficiency losses and verify where operational settings are generating results.
Which costs are included in the calculation?
The cost per hectare consolidates all costs required for agricultural machinery to operate and deliver the effectively worked area. Some of these costs vary with usage, while others are incurred even when the machine is not operating. Refer to:
- typical variable costs comprise fuel, lubricants, wear components subject to wear, maintenance proportional to usage, tyres, travel costs and, operator labour,
- Typical fixed costs include depreciation, insurance, interest or cost of capital, maintenance structure, and unproductive time accounted for as downtime
If not all costs have yet been fully mapped, begin with fuel, maintenance, and operator hours. That trio highlights macro-level operational efficiency losses.
A simple formula for routine operational tracking
A practical approach to day-to-day control of the cost per hectare is to divide the calculation into two components.
First, determine the hourly cost by aggregating all expenses required to place the agricultural machinery in operation for one hour, including fuel, maintenance, operator labour, and other associated costs.
Next, measure the operational capacity, that is, how many hectares the machine is able to work per hour under the current farm operating conditions. With these two figures, the relationship becomes clear:
- cost per hectare = cost per hour ÷ hectares per hour,
- more hectares per hour result in a lower cost per hectare,
- fewer downtimes and waste reduce the cost per hour.
This reasoning demonstrates how operational efficiency directly affects the operation outcome.
What changes the outcome in the field?
Even when using the same agricultural machinery, the cost per hectare can vary significantly depending on how the operation is managed.
Working at a speed outside the recommended range, underutilising the effective width, slow manoeuvres, and disorganised supply all reduce hectares per hour. Excessive movements, ground conditions, equipment malfunctions, and the lack of a regular control routine also affect the outcome.
In addition, the operator´s training level and the management of the operational window directly affect efficiency. When these factors are not aligned, the machine works, but it covers less area at a higher cost to the operation.
Nine practical actions to reduce the cost per hectare with agricultural machinery
With the index clearly defined, the next step is to adjust the operation in the field. The cost per hectare tends to fall when the agricultural machinery operates for longer periods productively and with less waste.
Some actions help address the factors that have the greatest impact on the farm’s daily operations:
- match the agricultural machine to the area and the operational window,
- plan routes and sequence of plots,
- organise supply and support in the field,
- create a pre-operation settings checklist,
- minimise manoeuvres and downtime,
- avoid overlapping and missed passes,
- keep preventive maintenance up to date,
- train the operator and standardise the routine,
- track hectares per hour and consumption per hectare.
Technologies applied to operational efficiency in the field
Technology helps reduce the cost per hectare by minimising waste, avoiding rework, and increasing the agricultural machinery efficiency. When applied correctly, this improves the quality of the operation and makes the outcome more predictable on the farm.
In the points below, see how precision farming, monitoring and connectivity, as well as controllers and automation, help reduce the cost per hectare in the farm’s daily operations.
Precision farming
When the operation implements precision farming practices to control traffic, application rate and passes, overlap and failures are reduced. This reduces input consumption and increases application uniformity.
n operations that use inputs, savings are realised quickly, as waste directly translates into cost.
Monitoring and connectivity
Monitoring and connectivity help identifying factors affecting the performance of the agricultural machinery throughout the operation. The operation can compare plots, shifts and working conditions, creating a consistent record of field operations.
Additionally, monitoring and telemetry technologies make it possible to view application results on maps, making it easier to identify potential waste.
This data helps to understand failures related to equipment setup or calibration, supporting faster settings and more accurate routing, timing, operation sequence and maintenance decisions.
Farming controllers and operational automation
Settings and operational control automation reduces human variability and increases the repeatability of operations.
With the use of farming controllers, such as Stara's Topper , the operator works with standardised parameters, achieving more precise control of operations and reduced reliance on manual settings. When the operation is consistently performed with quality, the performance of the agricultural machinery becomes more predictable, and the cost per hectare tends to fall.
Checklist to reduce cost per hectare in the next harvest
To support the daily routine, it is useful to adopt a simple checklist that can be adapted to the realities of the operation.
- Before operating: check inspection and safety points, confirm the main settings and adjust the working speed within the recommended range. Plan routes, define the sequence of plots and organise the supply point to reduce unnecessary movements and stoppages,
- During operation: monitor the hectares and track hourly consumption to ensure efficiency. Record stoppages and their causes, correct settings when variations are detected, and avoid slow manoeuvres or movements that reduce the performance of the farming machinery,
- After operation: record what was done per plot and identify what caused performance loss. Use this information to schedule preventive maintenance, adjust planned operations, and improve efficiency in upcoming work sessions.
Cost per hectare under control: operational efficiency in the farm
Keeping the cost per hectare under control is the result of effective field management. When the farm knows its indexes, plans operations, and executes well-defined routines, the agricultural machinery begins to work more productively and predictably.
Standardising equipment settings, maintaining preventive care, and continuously monitoring performance allow for more accurate and informed decision-making throughout the harvest.
With this approach, the cost per hectare ceases to be a figure analysed only at the end of operations and instead guides daily settings, reducing waste and maximising the use of the working window.
Frequently Asked Questions about Cost per Hectare
Which factors contribute most to the cost per hectare?
It depends on the operation, but usually three key factors make the biggest impact. Fuel, idle time, and maintenance-related downtime. By cutting downtime and covering more hectares per hour, this index improves rapidly.
What is the difference between cost per hectare and cost per hour?
Cost per hour shows the running cost for every hour of work. Cost per hectare shows how much it costs to cover each hectare. A machine may be expensive per hour, but it can still be cost-effective per hectare if it works quickly and delivers quality results.
How do you cover more hectares per hour while maintaining quality?
Minimise downtime, standardise settings, and stay within the recommended speed. Plan the route, cut unnecessary manoeuvres, and streamline supply. Quality can be affected when operations try to make up for delays with poorly planned decisions, such as increasing work speed or skipping checks on settings.
How does precision farming help cut waste?
Precision farming keeps passes under control, minimises overlap, and ensures uniform results. This reduces input consumption and minimises rework. The outcome shows in both lower cost per hectare and top-quality coverage.
How often should I recalculate the cost per hectare?
Recalculate the operation and do so over short periods, such as weekly or per harvest stage. This way, you can spot variations early and correct them before they become a recurring pattern on the farm.
How can the choice of machinery fleet affect the cost per hectare?
Choosing the right fleet impacts cost per hectare by defining operational capacity and agricultural machinery availability during harvest. Right-sized machinery for the area and work window boost hectares per hour and cut downtime.
Using Stara machinery with precision farming features, connectivity, and controllers ensures standardisation and predictable results. This system simplifies field settings, optimises input use, and keeps cost per hectare under control.
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