Grain Haulers, How Low Are You Going?

Discussion in 'Ask An Owner Operator' started by bottomhoppercrew, Apr 25, 2016.

  1. bottomhoppercrew

    bottomhoppercrew Bobtail Member

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    Mar 24, 2016
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    Grain prices are in the toilet, which means not a lot of people are signing contracts. I am a farmer myself, so I know the struggle of trying to hold off for better price. I have a handfull of customers that I do business with every year, and I have a set price per bushel. A 60 mile roundtrip gets me $0.15/bu, which is something like $5.80 a loaded mile. Sounds great, but the ethanol plant has a lot of detention time. The longest I have had to sit in line was about 6 hours! Another thing that doesn't help is that farmers no longer are required to have a CDL to drive a tractor/trailer. Bunch of BS if you ask me! I lost a lot of work because one guy I hauled for bought his own truck/trailer (non-CDL farmer). Another one's son bought a truck/trailer. With that being said, I am now advertising work in the paper for local grain hauling. However, it would require longer travel (my insurance only lets me go 50 air miles), and I'm not quite sure how to bill. I want to be fair to the customer, but I am also not a charity. I know some people talk about charging twice the fuel surcharge per loaded mile. With my short hauls and detention time, that won't work. I know you have to factor things in also like load time. I do a lot of work for my business partner, and it takes about 25 minutes to load. I was thinking about offering a discount if the farmer can load on the road with a grain cart. Some of the spendy ones can load a semi in about two minutes. PS the truck I use for commercial does have commercial plates!
     
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  3. deckeralliance

    deckeralliance Bobtail Member

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    Apr 8, 2016
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    Your .15 cents sounds about right for around here. What I do if the line is long at the ethanol plant...which it usually is, is charge an hourly rate on top of your base per bushel charge. If I sit over an hour I start charging. Most guys are alright with jt because they understand the issues. You may also consider charging per bushel based on how much time the trip takes. I charge 10 cents for anywhere 5-15 miles and 15 until 40 then anywhere from 23-26 for 70 depending on corn, beans, or wheat and also the customer.
     
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