  BeefTalk:
Mobile, Multiple-Use Power Units Replace the Farm Truck
By Kris Ringwall, Extension Beef Specialist,
NDSU Extension Service
A big discussion at the North Dakota State University Dickinson Research
Extension Center focuses on the equipment and vehicle inventory. I have endured
the discussions to determine our good pieces of equipment and what should stay
on our inventory and what should not. The old equipment has to go--and we will
sell it at an auction sale.
The definition of a good piece of equipment comes in two forms. The first
mentality is, buy it cheap; see if we can get an extra mile out of it; and than
sell it to someone of the same mentality in a few years. The second approach is
to settle on the right price (not the cheapest price) and keep the inventory
moving so as to maintain the lowest unit cost of usage.
Today’s debate centers around the grain (or feed) truck. Are there better
options or not? The grain truck is simply not used very much. The livestock
industry abandoned the truck several years ago for the more mobile lightweight
trailer. The shiny trailers haul horses, and the trailers with less shine haul
cattle.
The trailer industry produces a truck box, used to haul grain or feed that
does not permanently attach to the frame. The box can be parked when not needed
and the pulling unit utilized for other needs. Large grain producers have used
these trailers or those pulled by tractors for many years.
The core question is this: "How does a producer afford the power units that
are essential to running a farm or ranch today?"
It seems logical that maximizing the use of a multiple-use power unit is a
better option than the minimal use of a single-use power unit. In years past,
specific engines, tractor or vehicular, would be purchased with years of
anticipated use. Now, a more common approach is to calculate or at least
estimate annual use in mileage or hours, and come up with an affordable plan
based on cost per unit of use.
For instance at the research center, I can lease a multiple-use diesel pickup
with heavy tow capacity for a total of 37 cents per mile. The operating cost is
18.3 cents per mile. Depreciation is 3.5 cents per mile. And the replacement
rate is 15.2 cents per mile. With an annual use of 18,000 miles, this unit has a
life expectancy of seven years and a 40 percent salvage value.
The contrasting vehicle would be a tandem-axle truck. The operating rate is
$15.98 per hour. Depreciation is $5.66 per hour. And the replacement rate is
$17.36 per hour. The total is $39.00 per hour. These numbers reflect a 15-year
life with a 30 percent salvage rate.
Driving the diesel pickup 18,000 miles per year would be the same as 171
hours per year, or roughly a half hour a day. The grain truck is a single use
vehicle, requiring additional contracts or purchases to have power to transport
cattle, haul hay, haul portable corrals or simply move the crew around. The
diesel truck does require the purchase of a hydraulic dump box, but can then be
used for hauling grain, hay, cattle, equipment or crew.
For an operation of 400 cow calf pairs, using the truck or diesel pickup at
these rates, means spending $17 per cow-calf per year. And so the discussions
boil down to two options:
- Buy the truck, use it sparingly for 25 years.
- Lease the diesel pickup, manage portability of all operations and use the
pickup heavily and turn the pickup back in 7 years.
Depreciation and replacement are constants in any motorized vehicle
replacement, regardless of usage. All vehicles cost money, whether in use or
not.
I opted for the pickup, some would not, but times are a changing. What would
your figures say?
May you find all your ear tags.
Your comments are always welcome at
www.BeefTalk.com. For more information,
contact the North Dakota Beef Cattle Improvement Association, 1133 State Avenue,
Dickinson, ND 58601 or go to
www.CHAPS2000.com on the Internet. In
correspondence about this column, refer to BT0162.
###
Source: Kris Ringwall, (701) 483-2427, kringwal@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu
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Graphic
Which One Would You Pick for
Your Ranch Power Needs?
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Diesel Pickup Tandem Axle
Heavy Tow Truck
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Cost $ .37/mile $ 39/hour
Expected Life 7 years 15 years
Salvage Value 40% 30%
Annual Usage 18,000 miles 171 hours
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