why is off road so high?
Thread Starter
|
Posting Guru
Joined: Dec 2002
Posts: 1,346
Likes: 4
From: missouri
why is off road so high?
just wondering why in my farming town that off road diesel (no road tax) is running the exact same price as on road..??? I though the whole reason red diesel is cheeper because it's not road taxed.. so who is pocking that $.18 a gallon??? most the farmers are running on road diesel and just taking the tax write off at the end of the year... if they are going to do this why make off road diesel any more???
4.09 a gallon here
4.09 a gallon here
Post Fiend
Joined: Oct 2005
Posts: 10,626
Likes: 7
From: Plano TX and Brentwood TN
Best I can figure is that the co-op doesn't have that much buying power versus the other stations and therefore, can't even get off-road cheaper(which that doesn't make sense considering who they are buying for), either that or they need more money.
Posting Guru
Joined: Jun 2006
Posts: 2,096
Likes: 0
just wondering why in my farming town that off road diesel (no road tax) is running the exact same price as on road..??? I though the whole reason red diesel is cheeper because it's not road taxed.. so who is pocking that $.18 a gallon??? most the farmers are running on road diesel and just taking the tax write off at the end of the year... if they are going to do this why make off road diesel any more???
4.09 a gallon here
4.09 a gallon here
Dyed fuel is not just for Farmers or even just for off road use, its for tax exempt operators. In Iowa, the taxes not on dyed fuel amount to about 43 cents per gallon.
Thread Starter
|
Posting Guru
Joined: Dec 2002
Posts: 1,346
Likes: 4
From: missouri
just wondering they are killing the farmers around here... that's more money they have to pay out now...
Trending Topics
Post Fiend
Joined: Oct 2005
Posts: 10,626
Likes: 7
From: Plano TX and Brentwood TN
Something most be screwy with that co-op, because our co-op runs it cheaper then on road, the only bad thing is that not every co-op round here has fueling pumps and I only get it when I'm in that area for something else as it is a push for me to run my diesel truck over there to save 40 cents for the tractors and the mowers, so I just use the taxed stuff unless I have other errands(which is really rare, I might get off road fuel twice a year if that).
FTE Stories
Ford Trucks for Ford Truck Enthusiasts
Rezvani's Latest Post-Apocalytic Monster Is a Ford F-150 Raptor Underneath
Verdad Gallardo
Top 10 Most Expensive Ford Trucks Ever Sold on Bring a Trailer
Joe Kucinski
2027 Ford Super Duty Buyer's Guide (Every Model, Engine, & Package)
Brett Foote
Top 10 Ford Truck Tragedies
Joe Kucinski
AEV FXL Super Duty - the Super Duty Raptor Ford Doesn't Make
Brett Foote
Lobo Vs Lobo: Proof the F-150 Lobo Should Be Even Lower!
Michael S. Palmer
Ford's 2001 Explorer Sportsman Concept Looks For a New Home
Verdad Gallardo
10 Best Ford Truck Engines We Miss the Most!
Joe Kucinski
2026 Shelby F-150 Off-Road: Better Than a Raptor R?
Brett Foote
Posting Guru
Joined: Jun 2006
Posts: 2,096
Likes: 0
Maybe the coop has some sort of an arrangement with their farmer customers to deduct the extra charge from their bills or rebate them.
Senior User
Joined: Nov 2007
Posts: 175
Likes: 0
just wondering why in my farming town that off road diesel (no road tax) is running the exact same price as on road..??? I though the whole reason red diesel is cheeper because it's not road taxed.. so who is pocking that $.18 a gallon??? most the farmers are running on road diesel and just taking the tax write off at the end of the year... if they are going to do this why make off road diesel any more???
4.09 a gallon here
4.09 a gallon here
noticeable , now its a minor proportion of the total cost i.e. chump change.
Retailers currently are swiming in gravy as is the rest of the pipeline (GWBush buddies). Thier sloppy POS pricing is proof!
Two weeks ago in Williams ca. the Shell station 2 blocks east of the freeway, diesel was $4.79 versus the the $4.39 at
the Shell station 3 blocks west (other side of the freeway) that is obviously retail pricing and not other cost related!!
Post Fiend
Joined: Oct 2005
Posts: 10,626
Likes: 7
From: Plano TX and Brentwood TN
Not really, and I'm expecting this bubble for farmers to bust like it did back in the 80s where we have basically the same setup that we do now.
I can't say how their co-op runs in their state, but that doesn't happen at the ones here. Your rebate is tax exemption for which you have to show proof of that now as a new law became in effect at the beginning of this year no matter what it is your getting or the quantity of what your getting you have to show that you are tax exempt, however off-road is a different product because it's limited in use or else you get stiff fines. Off-road fuel is supposed to have no taxes levied on it, and if his co-op is pushing it at the same rate as taxed diesel then something is hinky there because they shouldn't be doing that because off-road diesel is supposed to be for everyone(not just farmers) that run it in mowers that are diesel or for those that have big enough areas of land that need tractors but don't farm.
I can't say how their co-op runs in their state, but that doesn't happen at the ones here. Your rebate is tax exemption for which you have to show proof of that now as a new law became in effect at the beginning of this year no matter what it is your getting or the quantity of what your getting you have to show that you are tax exempt, however off-road is a different product because it's limited in use or else you get stiff fines. Off-road fuel is supposed to have no taxes levied on it, and if his co-op is pushing it at the same rate as taxed diesel then something is hinky there because they shouldn't be doing that because off-road diesel is supposed to be for everyone(not just farmers) that run it in mowers that are diesel or for those that have big enough areas of land that need tractors but don't farm.
Posting Guru
Joined: Jun 2006
Posts: 2,096
Likes: 0
Maybe he should inquire at the selling station as to why the two fuels are the same price? Obviously the station is not "pushing" the dyed fuel and as said legitimate users can apply for the tax exemption rebate if they buy undyed fuel. Any adjustment to legitamate users buying dyed fuel at undyed prices would be between the seller and consumer.
Posting Guru
Joined: Jun 2006
Posts: 2,096
Likes: 0
Another possibility is that the dyed fuel at this location is LSD and the undyed fuel is ULSD. Then it should be cheaper you say, well it might actually cost more because its now a low sales volume fuel that may need to be trucked in from who knows where as its no longer provided through the conventional supply chain.
Senior User
Joined: Nov 2004
Posts: 352
Likes: 1
Corn might be paying well, but have you seen prices on fertilizer and seed this spring? My wife's family runs a dairy farm Here in western PA, and I'm pretty sure they were saying the fertilizer they were using to plant the corn was over $650 a ton..... figure around 300 lbs per acre for over 300 acres of corn and that's 45 tons of fertilizer @ $650 per = just over $29k..... plus probably close to that much in seed for the year. I think he said it was $25k in seed last year. Trust me....... at least around here anyway, the farmers aren't getting rich. Making a living maybe, but definitely not retiring anytime soon.
Post Fiend
Joined: Oct 2005
Posts: 10,626
Likes: 7
From: Plano TX and Brentwood TN
The must have raised it, because when I went to sow seed for the pastures, it was around 500 a ton this spring but I do it before the farmers start firing up their tractors for spring planting, so I probably missed the big demand surge.