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ASRB NET Farm Machinery Management & Economics: practice questions

ASRB NET — Farm Machinery & Power / Land & Water Management Engineering / Agricultural Structures & Process Engineering · India · Agricultural Scientists Recruitment Board (ICAR)

Original practice questions written to the published syllabus · not past papers
10worked here, free
37written to this exam in this subject
11syllabus units

What this subject covers

Choosing, sizing, costing and replacing machines, and running a custom hiring centre that pays.

In the exams: GATE AG Sections 2 and 3 (machinery cost in 5 of 8 papers 2019–26); ICAR AIEEA-PG Unit V; NCEES PE (ASAE D497/EP496 supplied); PRC ABE machinery management

What ASRB NET asks from it

State PSC Assistant Agriculture Engineer and ASRB NET

Custom hiring centres and mechanisation schemes, cost-of-operation arithmetic, and machinery selection for local cropping systems.

Where the 37 questions fall

How our questions for ASRB NET spread across the units of Farm Machinery Management & Economics. Difficulty: 2 easy, 21 medium, 14 hard.

Replacement decisions6
Machinery selection and sizing5
Custom hiring centre economics5
Field efficiency and timeliness4
Mechanisation policy and subsidies4
Depreciation methods: straight line, declining balance, sum-of-years digits3
Break-even use and custom-hire comparison3
Theoretical and effective field capacity2
Fixed costs: depreciation, interest, taxes, insurance and housing2
Tractor-implement matching2
Variable costs: repair and maintenance, fuel and labour1

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Field efficiency and timeliness · medium

For the same machine and operator, why is field efficiency usually higher in a long rectangular field than in a short, irregular plot?

  1. Overlap is not needed in rectangular fields
  2. Headland turning time is a smaller share of total time in long fields
  3. Draft is lower in long fields, so the tractor can be driven at a higher speed
  4. Refilling is not required when fields are long
Answer and working

B. Headland turning time is a smaller share of total time in long fields

Turning time per turn is roughly fixed; a long field needs fewer turns per hectare, so productive time is a larger share. Draft, overlap and refilling needs do not depend on field length in this way.

2 · Variable costs: repair and maintenance, fuel and labour · medium

A rotavator-tractor set burns 14 L/h of diesel at 90 per litre and covers 0.7 ha/h effectively. What is the fuel cost per hectare?

  1. 1,260/ha
  2. 882/ha
  3. 1,800/ha
  4. 20/ha
Answer and working

C. 1,800/ha

Fuel per hectare = 14 / 0.7 = 20 L; cost = 20 × 90 = 1,800 per hectare. Multiplying by capacity gives 882; 1,260 is cost per hour, not per hectare.

3 · Break-even use and custom-hire comparison · medium

If the custom-hire rate for an operation rises while the owner's costs stay the same, the break-even use for ownership:

  1. Is unchanged, since it depends only on fixed cost
  2. Falls to a smaller area
  3. Rises, so ownership needs a larger area
  4. Becomes zero, so ownership always pays
Answer and working

B. Falls to a smaller area

x* = FC/(R − VC). A larger R increases the denominator and lowers x*. It never reaches zero while FC > 0. So ownership pays at a smaller area than before.

4 · Replacement decisions · medium

An old combine is cheap to own but breaks down for several days in most harvests, causing shattering losses. In a replacement analysis, these losses should be:

  1. Added to the old machine's cost of keeping it another year
  2. Counted only if the combine is under warranty
  3. Ignored, because they are crop losses, not machine costs
  4. Added to the new machine's cost
Answer and working

A. Added to the old machine's cost of keeping it another year

Downtime in the critical window causes a timeliness loss that is a direct consequence of keeping the old machine, so it belongs in its marginal cost. Leaving it out biases the decision toward keeping unreliable machines.

5 · Replacement decisions · medium

As a machine ages, how do its annual depreciation and annual repair cost usually change?

  1. Both fall steadily
  2. Depreciation falls and repair cost rises, so average cost is U-shaped
  3. Depreciation rises and repair cost falls, as the machine settles in with age
  4. Both rise steadily
Answer and working

B. Depreciation falls and repair cost rises, so average cost is U-shaped

Market value drops most in the early years and repairs grow with accumulated wear. Their sum averaged over years owned is U-shaped, with the minimum at the economic life.

6 · Replacement decisions · hard

Two identical tractors are bought on different farms; one works 1,200 h a year and the other 400 h. Other things equal, the economic life in years of the heavily used tractor is likely to be:

  1. Longer, because its fixed cost per hour is lower
  2. The same, because economic life depends only on age
  3. Longer, because heavy use keeps parts lubricated
  4. Shorter, because hours and repair costs accumulate faster
Answer and working

D. Shorter, because hours and repair costs accumulate faster

Repair cost is a function of accumulated hours; at three times the use, the rising part of the cost curve is reached in fewer years. Lower fixed cost per hour does not change the timing of the minimum-average-cost point in the same direction.

7 · Tractor-implement matching · medium

While ploughing, a two-wheel-drive tractor shows 30 % wheel slip. What is the most appropriate first action?

  1. Add ballast or reduce the draft load until slip falls into the recommended range
  2. Lower tyre pressure below the minimum rating
  3. Remove ballast to lighten the tractor
  4. Increase engine speed to spin the wheels faster
Answer and working

A. Add ballast or reduce the draft load until slip falls into the recommended range

30 % slip wastes power and wears tyres; more weight on the driving wheels or a lighter load reduces it. Removing ballast would raise slip further. Too little slip, on the other hand, signals excess ballast.

8 · Custom hiring centre economics · medium

A custom hiring centre's tractor-implement set has annual fixed cost 240,000, planned use 800 h, and variable cost 900 per hour including operator. With a 15 % margin on full cost, what hire price per hour should it charge?

  1. 1,380/h
  2. 1,335/h
  3. 1,200/h
  4. 345/h
Answer and working

A. 1,380/h

Full cost = 240,000/800 + 900 = 1,200 per hour; price = 1,200 × 1.15 = 1,380. 1,200 has no margin; 1,335 applies the margin to variable cost only. 345/h applies the margin to the fixed part alone (300 × 1.15).

9 · Mechanisation policy and subsidies · medium

A central aim of supporting custom hiring centres under national mechanisation schemes is to:

  1. Increase fuel subsidies to large farms
  2. Reach small and marginal farmers who cannot justify owning machines
  3. Replace all private tractor ownership
  4. Reduce the number of tested machine models sold under the subsidy scheme
Answer and working

B. Reach small and marginal farmers who cannot justify owning machines

Small holdings are below the break-even use for most machines; hire centres spread fixed cost across many farms. They complement, not replace, private ownership.

10 · Mechanisation policy and subsidies · medium

India's scheme launched in 2018 for Punjab, Haryana, Uttar Pradesh and Delhi subsidised straw-management machines mainly to:

  1. Increase wheat yields through deeper ploughing
  2. Reduce burning of paddy straw by managing it in the field
  3. Replace combines with manual harvesting
  4. Promote drones for spraying
Answer and working

B. Reduce burning of paddy straw by managing it in the field

The in-situ crop residue management scheme supports machines that chop, spread or incorporate paddy straw, or sow wheat into it, so farmers need not burn residue before wheat sowing.

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Read the subject

Farm Machinery Management & EconomicsThe full study manual, free ASRB NETFormat, sections and how it has changed

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Farm Machinery Management & Economics for other exams

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