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South Central Iowa | EXACTLY!
I am glad there are other people that understand that those are fixed costs. Insurance and registration costs are the same regardless of how much you drive!
For farmers, I also think repairs on a truck should be considered a fixed cost as well. If you do not exceed the heavy-use mileage exemption, you are not driving enough to make a difference in your repair bills. There is not a tremendous difference between driving 5,100 miles and 6,300 miles. These trucks are made to drive 50-100,000 miles a year. I personally spend about $2,000 in repairs on my truck every year and I depreciate my tires over 8 years at $800 per year. I should probably replace them after that time anyway because of age and weather checking. Most farmers do not drive enough to make a difference in their repair bills; things break and must be fixed, 1,200 miles isn't the difference maker. | |
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Cost to haul soybeans
