Usually people measure costs in dollars, so the most natural way of measuring cost is to speak in terms of dollars per year or dollars per unit (tons or 1,000 gallons) to apply manure. However, two other factors that affect the decisions of manure managers are: 1) the number of acres needed to land-apply the manure and 2) the number of hours needed to land-apply. Both of these could be changed to dollars by imputing an opportunity cost, but it is frequently more useful to note the acres and hours required as costs alongside the dollar cost. Looking at all three simultaneously allows the decision maker to determine which “cost” will be the limiting factor in the decision.
While equipment, fuel, and labor are typically the largest costs, there are also costs for manure analysis and perhaps soil sampling, applicator certification, and nutrient management plan fees.
Author: Ray Massey, Agricultural Economist, University of Missouri
