Getting fuel for the farm

There has been an ongoing problem in SW Ohio with getting farm fuels. I am not going to name names to keep my butt out of the sling. There is one company that has been buying up smaller fuel companies and closing them, If they cant buy them out they open a place close by and loose money selling fuel close them up. This has been going on for some time now over a large area.

The way it is now I have only 2 places to get farm diesel fuel from and they both have to deliver fuel to you, You cant go get it in a tank anymore. The problem is they charge $150 for delivery no matter how much you get, 5 gallon or 5000 gallon its still $150 delivery charge. A hundred gallon tank on a truck is no big deal but put 2 100 gallon tanks on a truck you will get pulled over and get a nice big ticket and you know why. The sad part of this is there was a place 2 miles from the farm I use to go get fuel at, Now they have to bring it to you and get $150 for bring fuel it to you and its the only way you will get it.

At this time my only option is to use road diesel in all the tractors and at the end of the year file to get the tax money back from the diesel being used on the farm. Its a pain to do but I don't have any other choice but to do it. Being a small farmer I have to make ever dollar count more so then the big guys do because I don't get any brakes on price being small. It seams its getting harder and harder to be a small farmer in my area and keep going.

How is getting fuel to the farm in your area? Can you go get it as you need it? Or are you like me and having to use road diesel because there is no other choice. Bandit

Here the local COOP added 2-5 cents a gallon for a delivery fee, may be more now, that said I buy from a fuel supplier and they not only give me a better rate on the fuel than the COOP did they do not charge for delivery, I went to the COOP manager and told them what I could get it for before I dropped them, they said my 30,000-50,000 a year account would not bother them to lose at all, so I switched gladly, I have spent less than 100.00 with then since in the last 15 years since
cnt

I can still buy farm fuel at the pump right in town. I also have 5-6 companies that will deliver to me.

Your around Blanchester, Ohio??? There is a fuel company at Mt. Orb that will deliver farm fuel. I have several family members that buy from them. They should have a route up your way.

Cantrell Oil Company
4921 Tri County Hwy,

Mount Orab, OH 45154

(937) 444-7123

In North Idaho, there are several places you can get it..

Our favorite is the local "Truck Stop" a Conoco on the side of the highway 95. They have big Green pumps, and then one high speed red pump off to the side, just pull in and start pumping, and go in and bs with the guys at the counter and wait for the red pump to shut off, then pay the guy, go back out and leave!

The local Coop will deliver anything for a % of the price, and it is very reasonable... Right now I think that their gas price was $2.97, and they would deliver it for $3.22? That is on a 100 gallon minimum..

Just a little while ago, the state passed a tax thing, where red diesel is no longer tax free, it is the same price as the green, UNLESS, you fill out a whole pail full of paperwork, and get a fuel card from the state saying that you are "allowed" to get tax free fuel... So, basically, red is the new green!! : Bryce

Here in Illinois if you buy on road diesel for farm use from the local gas station you can no longer get the Illinois gas (diesel) tax refund for farm use from the Illinois Department of Revenue even if you keep good records. (In the past you could keep your receipts for up to 2 years and then apply for the refund of the tax.) They say you should just buy off road diesel from a supplier (off the truck). As a small time operator who doesn't use that much diesel, I would lose more to evaporation buying 300 gallon at a time off the truck (plus it is usually a nickel or so more per gallon off the truck). Just doesn't seem quite fair to small time operators. Guess the Ilinois Legislature doesn't support the small family farm anymore.

our co-op used to give a discount for bulk delivery on farm, a few years ago they stopped that and started charging for delivery with no discount. I buy diesel and gas at the pump in two 150 gal service tanks in pickup box trailer now. Red fuel is .50 a gal cheaper than road fuel.

These fuel companies seem to like to play these games. I think the long time local supplier had a reasonable minimum delivery requirement before an additional fee was charged.

That same company, years ago, was delivering fuel to a friend that had just gotten into a garage/gas station business. There was some conflict along the way, the fuel company was still very reputable, and had a large share of the market, but he had enough, bought an old fuel truck, got it road worthy, and I stood right there when he told the owner of the fuel company that he did not need his services anymore. His reaction was priceless, I know this person from years of business, sometimes its a refreshing slap in the face that levels the playing field. It went over quite well, more so long term. So he had a few gas stations/garages going, but then took it to another level, by going into the fuel business, invading the local market that all the long time fuel companies had divided amongst themselves. So now, like these long standing business's he was buying allotments of fuel from the port, undercut the price and took a huge market share of the business, he expanded, new single axle tank trucks, tractor trailers, and was profiled on the front page of the local business review publication as one of the fastest growing business's in the area, and of course the outfit he had delivering his fuel was most certainly humbled. He even went into fleet fueling and used outside the box thinking to really stick it to these other business's. Once established, he got the attention of a national business, sold the whole lot off to them for a windfall, remained on as the operation manager for a healthy salary for 5 years, and eventually did consulting work for the state.

Its sad when a supplier bullies customers, the above is a great example of very humble beginnings, the owner with his barely, but legal old fuel truck, making deliveries himself at 3 am in the bitter cold, to a very successful venue, none of those 100 year old business's thought it possible, and no one else had ever tried this, sure there were always sole proprietors with one nice truck making a living hauling fuel, he literally invaded and took over significant portions of their markets.

Would be great if someone did that to this looming monopolizer in your area.

Here in NY we have 3 kinds of "diesel" fuel. On road, which is green, off road which is a pink kind of color and furnace or heating oil, which is red., a law was passed a few years ago that you could not use furnace oil in your tractors anymore, you had to buy off road fuel. There is no problem getting any 1 of the fuels around here. If you want heating oil delivered its 150 gal minimum and it's $3.25 a gallon no delivery charge. Off road is .10 cents a gallon more., both on road and furnace oil are available at the pump also.

You know, years ago a customer meant something to a business, now I guess we are like buses....another one will be coming along shortly.

Do any of the truck stops have pumps for Reefer units? Local station has a dyed pump for reefers school buses and occasionally a farmer will fill there.

Just a thought and probably doesn't apply in your case.

jt

Road fuel, red fuel, is cheaper because you don't
have to pay road tax on fuel used in off road
equipment.

The local bulk distributor has unattended gas pumps, including one pump that is red dye / farm use diesel. You need to register your credit card with him, along with your farm tax ID number. But after than, your credit card will work on that red dye diesel pump. The co-op up the road has a similar set-up.

A friend of mine owns the local heating oil and farm-fuel business in town (Otsego County, NY). She tells me that now the heating oil and farm-diesel come out of the same tank. No difference in color. The heating oil has NO lube added to it and it not suitable or legal for use in any engine. When she sells it as farm-fuel, she has to put the additive in.

Here in Alpena, Michigan - there are several gas-stations that sell off-road diesel right at the pump. It's all on the honor system. Right now it's $3.39 a gallon. On-road diesel is $3.79. Gasoline is $2.68. When I first moved to Alpena, I accidentally filled my Ford F250 with the off-road fuel. Got me worried after I saw my mistake that some alarms would go off somewhere - or a video camera would report me. Nope, never happened.

The Co-op has never charged for fuel delivery here as far as I know. I can buy the same fuel in town from the diesel tanks and being registered for the Sask. fuel tax exemption I get it for farm fuel price. Dyed fuel of course. Key lock or card lock customers can fill up there 24/7 if they need to.

The problem shows up when the gendarmes show up and sample your tank. Then it"s a "fine" time...they can go back in your records and add the tax for previously used fuel. Farmers often get caught when delivering livestock to a sales barn. Cops go right down the line of farmers pulling in.

Several coops and at least one private outfit make deliveries around here.

In general they really like to have 48 hours to deliver, and will charge a fee if you need an off hours delivery (heating fuel diesel for example) but try to work with you if you have an empty tank during harvest, etc. they also want to deliver at least so and so much, think 150 gallons, not even sure.

Obviously one pays for delivery, but there is no extra fee for delivery.

I would likely not be treated as well if I called a different co every fill up, and hassled them for 50 gallons at a time or run out every month and need a fill up in the next 3 hours, etc.

Dad and now I have bought from the same coop for over a half century, and it always try to give them 48 hours to deliver, and it try real hard to get either side of a snowstorm or ice conditions so he doesn't need to worry about my driveway or the roads in general. As such, they will bend over backwards to get me fuel if u really would need it.

One time i called on a Friday and said need it in the next week, no hurry. He showed up the next Friday afternoon, I was getting a little worried that he forgot me, he said he could see the fuel prices dropping all week so he waited until the end to get me the cheapest fuel.....

Paul

I just looked at a fuel slip i have here.

No delivery charge, dyed diesel right to the bulk tank. Cheaper than road diesel and delivered...

Our guy comes and fills when you call him.

I bought a small amount of highway diesel before when using a previous supplier (We can't come til X) and filed for tax return, but that is a pain compared to getting it delivered and not paying the highway tax up front...

Are you saying that the fuel companies are charging to deliver heating oil?
I suspect they just want some the that fantastic profit you are making. So just have them deliver heating oil for your furnace, point out where your tank is and you will call when you need it. If one company balks go to the next.
If you some lubricant buy it a diesel supply house, I'm sure there are some reasonably close by.

At one point in my life I lived in Seattle and had a friend who owned a large yacht. He had a heating oil company deliver large quantities of diesel into his boat. Like 5000 gallons, kind of amusing to see a tanker sitting at the end of the dock with a fuel hose down to the dock and stuck in his fuel fill. Never a complaint.

My biggest problem is there are a few places to get farm diesel but there 25 to 30 miles away and the added cost of the trip for 100 gallons makes it cheaper to buy road diesel local. The big company that's buying everything up changed there name last year and sell oil fuel electric and propane now. Around here (SW Ohio) you don't own your own propane tanks and have why ever fill them, You have to rent there tanks and buy propane from them only at there price. Hear lately I have herd form some people that are saying that your propane price is set by your credit score with a lot of these companys. Oh your poor and your credit score is low, Well your a risk so the propane price is going to be high. I do know for a fact a local farmer is getting propane for $1.59 and a guy down the street is paying $3.69 a gallon for propane coming off the same truck! Bull Crap! Its a Joke!

Sorry for the rant it just seam to me there is a Monopoly around hear. Bandit

That's a dirty way to do business, bleed the other guy to death before you do. Then when you have the local market cornered....

Around here the local place charges a noticeable amount for delivery but they are happy for you to bring your tank to them and you can fill it at a normal price. If they tried to gouge, the farmers would quit them pretty fast as there are other options.

Local business thrives on people being reasonable.