Labour efficiency is a critical component to farm profitability. In 2008, wages and owner labour costs accounted for 40% of the total overhead cost structure, which made up 50% of total costs. Improvements in labour efficiency, therefore, will have apotentially large impact on profitability. Total power, machinery and labour (TPML) is a measure of the total cost of the investment in a labour unit on farm. TPML has been calculated by adding all of the expenses associated with operating a labour unit. The broad categories include contracting services, wages, depreciation, repairs and maintenance, fuel and lubricants, utilities and motor vehicles.
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