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elcheapo
Veteran Advisor

"marketing costs"

As some of you already do, are going direct...i'm still in the old world, but planning on changing a few things.

 

What do you hear for average trucking rates for grain...i'm told around harvest about 2.25 or so a loaded mile, but a while

later around 1.85 a mile..i know many factors that go into it...i take it these would be 800 bu trucks.

 

another interesting point is, what is the cost to own a semi....that one really is a hard one...some fellows want a nice,

dependable one, that all the lights work...stops on a dime, has some tread left on the tires, and doesn't need

baling wire to hold to door shut....and you keep a case of motor oil and antifreeze inside the cab.

 

lastly, what have you herd for the cost of grain bins....again, alot of variability....from entire turn key operations, to

the bin come in a kit.....and is dependent on the size of the bin.

 

after the bids we got today....and they were willing to do several years out, and one had a "contract thing"....that basicly

if things go up, you got a bit more...

 

seems to me i should be able to make some money traveling 30 to 40 miles to gain 30 to 50 cents a bu.

 

kind of hate tho driving a semi that far.....the boys at the elevator already crawl behind the steel beams when

i drive into the elevator.......boy they are a nervious bunch there.

 

 

10 Replies
rayjenkins
Veteran Advisor

Re: "marketing costs"

If you truly can find someone to haul grain for $2.25 per loaded mile

 

forget any ideas of buying a truck and hire it done

 

maybe those rates are "per running mile"???

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illinifarmer
Advisor

Re: "marketing costs"

Yeah, not bad up here about 14-18c per bushel to local coup. 800 bu about 150$.. Always could opt for six wheeler around 500 bu a load and much less financially. Just a thought
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bkadds
Advisor

Re: "marketing costs"

Elcheapo--I enjoy reading your posts. Keep it up as you at the very least make me stop and think.
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ECIN
Senior Advisor

Re: "marketing costs"

elcheapo - you asked a loaded question on truck ownership - There are many many ways to look and figure it - I will tell you about mine - and this may help you in your decision -

 

I have 2 semi's - one plated farm , one over the road , it do's make a difference in how you do things , the on farm truck is a lot cheaper in some costs - like insurance - plates - fuel permit , dealing the feds .

 

Trailers - You can pick up a steel trailer - there were big when they came out around here years ago - but after a few years - they started to rust - they use a lot of salt here in Indiana - most have gone to aluminum = higher cost to buy - yet last and look good for a long time - there's air ride and spring ride - name your poison - You can buy a nice - older timpte for around 12 grand - that being a 96 to 98 type year - New - 34 thousand - just priced one .

 

Tractors - same deal - you buy a rag - that's what you have = always = always something to work on and they are not cheap either for parts - it helps if you have a top of the line shop and know how to work on them ! Some little things that can go wrong buying a rag - engine = 12 grand - clutch = 3 grand - and it go's on and on - trust me - I know : )

 

The over the road truck is what helped me in the marketing - I can look for the best basis or price then I haul for several different companies - then call them and find a load back home - most of the times this works well - This past summer - We hauled 65 miles North then brought home a load of beans - - that was not a big money maker for the truck = 2.66 a loaded mile home - but it was a back haul - it paided the fuel - driver cost and made a little for the truck - I like to be in the 3.30 loaded mile range to make money - and thas why we do it right ? to make money : ) But then we have the added insurance costs - plates are more than double -

 

Tires ??? yes we need them - we always put on new tires - probably 400 a pop . no recaps here - I have seen some come apart and they can screw up a trailer or the back of the cab .

 

I putting the over the road trucks figures together - so will have a better answer to give you in a week or so . but all depends on repair costs - fuel milage - btw the old truck for the farm runs around 4.5 to 5 = 400 Big Cam - the 2013  Prostar+ with 461 hp runs 8.5 mpg -

 

The buying a truck deal is not with problems and cost - theres nothing free about owning one - thats for sure .

 

 

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roarintiger1
Honored Advisor

Re: "marketing costs"

ECIN,   Sounds like you need a bigger truck.    Smiley Happy

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sw363535
Honored Advisor

Re: "marketing costs"

Elcheapo,

 

This is an interesting series of sermons.  Todays is dealing with yesterdays etc.  Yesterday I was carrying Kleenex and today ........ can't wait to go shopping.  Smiley Happy

 

Yes there is a reason for the basis difference between the local coop where you get service and a smile from a different young scale operator each harvest, and the end user who just wants your grain and "stay in your truck", "keep the line moving", "what's your unload number"...........

But if its 25 miles and you already have the truck, it's 20 mile to the coop where they can't find your contract and go home at 6 unless it is the first week of harvest,  ..........................especially if you buy your inputs at a cheaper location.

And for us, we had already built a small elevator so we could harvest late and weekends (and we make harvest last a long month(s) cause we love it so).  We find that the e-plant will pick corn up at our facility with their WDG trucks on backhaul for ten cents a bushel to make that delivery for us, when the coop basis is 15 cents and the e-plant basis is 40 cents up and our truck is busy.  For grain that needs to turn to cash at harvest and came cause the yield was higher than expected ( and missed the preseason contracting frenzy).  It is a good alternative....

 

It is a proverb I have been mentioning since the government decided to pump $$$$ into e-plants instead of storage like they did in the 5o's.  But on this "marketing" forum it might get you to the "OFF TOPIC" detention room.  

"more than ever, marketing is 25% CBOT and 75% relationships in your operating range."

 

I have tried to get this point across without detention, but Truth is your CBOT now stands for Computer not Chicago ---- and your operating range is bigger than you think.  

Rates are not that high... We hire our beans delivered 220 miles away for 30 to 35 cents a bushel......as a backhaul..  the trip gains us 70 to 90 cents basis..  We just happen to be in a area that buys a lot of bean meal from that same plant.  

 

Know your area ....... meaning the business that goes on in your area and how you can fit into it..................... 

 

"$$$$ into e-plants instead of storage "   --------- having food in storage and $$$ in savings is just not what this country is about these days.

 

Keep up the good work "Festus"  Festus Haggen's voice comes through my brain while i read your posts --- That is a bigggg compliment...

 

"when ya sit down to read the writin", how do ya know that the fellow who wrote the readin' wrote the readin' right?"

 

ehoff
Frequent Contributor

Re: "marketing costs"

 you don't need the semi to haul the product to the bin at harvest then you don't need one to haul it out of the bin to market. Let someone else have that. A cargill manager many moons ago when I was a trainee said that truckers are a dime a dozen. Well he angered some of the local truckers but he made his point. Trucking in most areas is a competitive business and can be hired cheaper than you can own a truck alot of times.

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buckfarmer
Senior Contributor

Re: "marketing costs"

Trucks and on farm storage have a huge convenience payoff for my situation. I have no idea how to measure it.
elcheapo
Veteran Advisor

Re: "marketing costs"

funny you mention festus............his counterpart, ole doc adams, has a local connection.  Way back when stone was

getting starting in acting, he was visiting some relatives in a small town here close.  He had a bad tooth, that the

local denist worked on........well, doc never did pay the bill !!!  The bank has it in a safe deposit  box.  I've seen it

once.........that dag blamed ole coddger

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