All good things come in three.
Our calculation tool
The free of charge pricing tool provides all key data. Price of service, efficiency potential and rate of return are calculated considering the volume of the operated land. Results are shown on a per hectare base and as total amounts.
Transparent
Price of service = base package + municipality flat rate – discount
Beneficial
The efficiency and cost saving potential are based on opportunity costs
Profitabel
The return rate is derived from the price of service and the efficiency potential
Three simple steps to retrieve the area-specific price
- Choose your base package.
- Provide your farm size and the number of cadastral communities (CCs). Tip: in case you don't know the number of CCs, preliminary proceed with 1 CC.
- The pricing elements will be shown immediately: price of service, expected efficiency potential and rate of return.
All values contain 20% VAT and are exclusively applicable for Austria.
Explanatory notes – efficiency potential
Calculations are based on the principles of opportunity costs and marginal costs and revenue considerations.
In the following situations the pricing tool serves you as a decision base with high accuracy:
- All agricultural corporations, that consider to upgrade instruments and machinery for implementing precision farming
- Existing GPS- and/or RTK-technology on tractor and machine-terminals with a focus on automated steering and other assistance systems
- Without GPS- and/or RTK-technology on tractors and machine-terminals – this requires the prevalence of fields with homogenous soil structures
- Fostering the Next Generation Farmers through transferring know-how and/or enabling them to run a modern farm
The investment period depends on the type of service. 5 years are applied for the services Soil and Crop yield and 7 years of investment period are applied to the service of Fixed-costs.
Section-specific fertilization allows to apply the same total quantity of fertilizer but in a more efficient way. Increased revenues of 15,5 EUR/ha wheat and 25 EUR/ha corn are conservative estimates, that may result from VRT fertilisation. These increased revenue values are derived from the corresponding higher crop yields estimates of 100 kg/ha wheat and 200kg/ha corn and a market price of 155 EUR/t wheat and 125 EUR/t corn. The service tool uses only the conservative estimate of 15,5 EUR/ha for wheat.
In order to show the rate of return for both services, the total revenue potential of 15,5 EUR/ha and year is split and disparately allocated (Soil 5,5 EUR/ha & year; Crop yield 10 EUR/ha & year).
The efficiency potential of this service is calculated with 18 EUR/ha & year. The derivation follows the principle, that the service Fixed-costs enables the agricultural entrepreneur to expand farmland with VEDAXS. Hence, the potential marginal profit from farmland expansion directly reflects the efficiency potential of this service.
The conservatively assumed efficiency potential is 18 EUR/ha of total farmland and year. This is based on an estimated marginal profit of 180 EUR/ha expanded farmland and year, and 10% of farmland expansion. The underlying calculation models an agricultural corporation with these characteristics:
- 70% leased farmland
- an average lease of 400 EUR/ha & year
- typical crop mix of Austria based on the last 3 years
- 10% farmland expansion with VEDAXS
- a minimum contracting period (= investment period) of 7 years
- conventional farming
Example: agricultural corporation with 50ha of operated farmland
- Expected marginal profit = 200 EUR/ha & year
- Conservative estimate of marginal profit = 180 EUR/ha & year
- Efficiency potential = 180 x 50 hectare x 0.1 farmland expansion x 7 years = 6,300 EUR for the investment period
- Efficiency potential = 6,300 EUR / 50 hectares / 7 years = 18 EUR/hectare & year
- Efficiency potential (independent of area) = 180 x 0.1 = 18 EUR/hectare & year
The input parameters for the pricing tool are based on the following data sources
- Expert-based discussions with agricultural entrepreneurs
- Online Gross margin tool, Bundesanstalt für Agrarwirtschaft (AT) and LfL Bayern (GE)
- Book keeping results, Publischer LBG via Bundesanstalt für Agrarwirtschaft
- Data catalogue for gross margins and data for corporate planning 2008, BMLRT
- Proprietary modelling tool
- Various agri-service providers (AT)
- Cash Crop Report 2015, agri benchmark, Thünen Institut in Braunschweig (GE)
- KTBL – Kuratorium für Technik und Bauwesen in der Landwirtschaft (GE)
- ÖKL-benchmark, Österreichisches Kuratorium für Landtechnik und Landentwicklung
All data on this web page is provided to the best of our knowledge and judgement. We don’t assume any liability for the completeness or accuracy of the data.
