Economic Analysis Of Ideal Time For Farm Tractor Replacement. A Case Study Of Tractor Owners And Operators Association Of Nigeria, Kaduna State.

Today, of all the sources of farm power available, tractor stands out as the most important power sources in agriculture. Timely replacement of tractor is amongst the most important decisions that should be made by farmer. Adequate optimum performance in this case can lead to timely, high quality farm operations which in turns results in considerable decrease in product expenditures and also more income. The study was performed in order to determine economically optimum life of MAHINDRA 605 tractors under Tractor owners and operators Association of Nigeria (TOOAN) in three regions of Kaduna state, Nigeria. Moreover, listed price of tractor, annual depreciation and Internal Rate of Return in the study period were calculated. Then, these components accompanied by their repair and maintenance cost were used to determine their economic life. Finally, replacement time for the study tractors was obtained equal as 5679 hours. These hours of operation are performed in about 10 years and thus the tractor should be replaced.