Agricultural Economics Department
Date of this Version
February 2002
Abstract
One of the most frequently asked questions I receive is what should I charge my neighbor for the use of… … .? The equipment items in question range from individual implements to center pivots. Regardless of the piece of equipment (or facility) under consideration, the criteria that apply remain the same: 1) the owner should recover a fair share of all costs associated with the additional use, both the out-ofpocket costs as well as any accrued costs, and 2) the owner has certain annual costs that the owner will be obligated to cover whether or not the equipment is used, but the neighbor would be able to share in those costs as long as
Comments
Published in Cornhusker Economics, 02/13/2002. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.
http://www.agecon.unl.edu/Cornhuskereconomics.html