An initiative of the Australian Government, the Grains Research and Development Corporation (GRDC), has released a new farm business fact sheet designed to assist grain growers with the decision of whether or not they should own a truck.
While growers may be tempted to buy their own truck based on convenience, the GRDC advises that any decision around purchasing a truck for the transport of grain should take into account a multitude of factors including economics, lifestyle and resourcing.
GRDC Grower Relations Manager South, Randall Wilksch, said the fact sheet was a useful resource to help growers decide whether they should purchase a truck or use freight contractors.
"As a grain grower, I know the question around truck ownership can be complex, as so many factors need to be taken into account," said Wilksch.
"The new fact sheet provides guidance as to what growers should consider when weighing up the pros and cons of purchasing a truck,” he said.
The fact sheet details a grower case study and contains a five-step guide to aid in growers' decision making.
Those five steps are: Collate a list of the potential uses of a truck; estimate the amount of time it will be used and the distance it will travel per year; assess the financial costs/benefits (this will establish if it is economically viable to own a truck, the type of truck required, and how much it will be used); document the cost of employing a freight contractor to complete the listed tasks; and compare the full cost of purchasing a truck versus using a freight contractor.
The fact sheet includes tables for estimating truck operating expenses for a low, medium and high capital investment, and for calculating total per kilometre loaded cost to compare with freight contracting rates.
The publication advises that all machinery purchases should fit the whole farm production and labour plan.