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South Central Iowa | I have a 2004 Freightliner 120 Columbia day cab. Mine has the Detroit Diesel and it has 520,000 miles on it. You can buy one for approximately $25,000. When I do it again, I think I will avoid such a large displacement engine. I think it is not as efficient as some other trucks.
I answered this above, but insurance and registration are fixed costs. I also believe that a farmer should consider repairs on a truck a fixed cost if he does not exceed the Heavy-Use Tax exemption. The difference between driving 5,100 miles and 6,300 miles is negligible. It does not guarantee that you will have added repair costs to drive 1,200 miles. Most farmers who haul local are more likely to have to replace tires because of old age issues as opposed to tread wear. Repairs on a truck are a fixed expense for most farmers in my mind.
I normally count labor in my calculation and currently use $1.00 per mile, which would bring it up to $0.20 per bushel in our example. But I cut that out so he could see his labor alongside his gain in price. His only real variable cost is fuel; his labor is in the gain and repairs are negligible difference when so few added miles are considered. | |
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Cost to haul soybeans
