Updating the machine rate costing approach for forest harvesting machines in the southeastern United States

The machine-rate methodology provides a basis for estimating the total hourly costs to own and operate logging equipment and comprises fixed, variable, and labor costs. The calculations form a simple approach to estimate machine costs and evaluate new machine alternatives consistently. The methodology has been used extensively since its development in 1942 with periodic updates. The machine-rate method has been widely cited and is regularly used by researchers, logging contractors, harvest managers, and procurement foresters. Since the last update in 2002, machine manufacturers, purchase prices, operating costs, and data sources have changed significantly. Therefore, the objective of this study was to update and modernize the methodology using current machinery, assumptions, and inputs to improve its accuracy and usability. Machine-rate inputs including interest rates, purchase prices, economic life, repair and maintenance, fuel consumption, and lubrication cost were collected for 123 unique machines from whole-tree and cut-to-length equipment dealers in the southeastern United States. In addition, empirical data were used to provide estimates for variables that previously relied on rules of thumb. Finally, guidance was provided to enable users to update assumptions with publicly available information. Prospective users can view and download the updated costing approach spreadsheet in the Supplementary Material linked to this article online.