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

The cost of operating tractors in three different farms was investigated. Data were collected for six years on a total of112 tractors. The data was categorized into different costs constituting cost of operating tractors such as repair andmaintenance; fuel and lubricants; operator’s wages; interest; insurance, taxes and shelter costs. Different formulaewere used to analyze these operating costs. The results showed that Farm 1 has the highest values while Farm 2 hasthe lowest. It can be concluded that the cost of operating tractors in small scale farm (10 ha) on the annual averageis N84, 0000; N110, 000 in the large scale farm (50ha) and N712, 000 in the industrial scale farm (200ha).