Gas pumps on the farm save money.

Discussion in 'Homesteading Questions' started by brownthumb, Aug 15, 2006.

  1. brownthumb

    brownthumb Well-Known Member

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    I often wondered about the large gasoline tanks with the hand crank that farms around here have near their barns and garages. It must be convenient to have them. Do you get a discount for the larger purchase of gas?
    Is there a delivery fee? There must be a lock to avoid theft. Is fire and liability insurance higher? Do you have to have a farm tax number to avoid the sales tax?
     
  2. Jennifer L.

    Jennifer L. Well-Known Member Supporter

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    You get the federal taxes back on your income tax. Can't remember the form number but it's the Federal Fuel Tax Credit form.

    Does it save money? Well, you can't take a tractor to the gas station 8 or 10 miles away so you need them. I keep mine locked in times like this when the gas prices go up suddenly. I've never really looked too close, but I have the idea the gas is probably more expensive when you consider the delivery fee. AFAIK, my insurance is no problem with it. You don't put the tanks too close to buildings so if they did go up the buildings around your place would be safe.

    Jennifer
     

  3. mayfair

    mayfair a yard full of chickens

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    My parents have on-farm gas tanks and the gas costs more, but is worth it for the convenience.
     
  4. rambler

    rambler Well-Known Member Supporter

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    Typically gasoline & diesel fuel is a bit cheaper delivered in 250 or gallon amounts - tho some of the big roller coaster prices of the past 3 years has affected that.

    In Minnesota you can get dyed fuel which has no tax paid on it, cannot be used in a registered vehicle on the road. Other states may have diff rules. You can keep records & reclaim your road taxes for fuels not used for on-road use.

    --->Paul
     
  5. DaleK

    DaleK Well-Known Member

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    You can save particularly if you fill the tanks at the low point but you can get caught with a tank full of expensive fuel too. Also there are different tax breaks in different jurisdictions. On our farm when Dad and I are both going in planting or harvesting season we can easily use 200 litres of diesel a day through 2 or 3 tractors so driving all of the tractors 6 miles to the nearest station and 6 miles back every day doesn't quite work, 2000 litres in the tank in the yard goes quickly enough.
     
  6. Charleen

    Charleen www.HarperHillFarm.com Supporter

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    I think it's Federal form 4136. I think there are state forms also.
     
  7. Hammer4

    Hammer4 Well-Known Member

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    No, most on farm pumps don't save money. They are there because large tractors have large tanks, and it's a pain to fill a 50 gallon tractor tank from 5 gallon cans.

    The going price for fuel to be delivered is usually at or above current ag use diesel prices, plus you pay a delivery charge. Then you have to worry about theft, water in the fuel, tank corroding and dirt and debris in the fuel.....
     
  8. michiganfarmer

    michiganfarmer Max Supporter

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    Our price is usually at or just below pump price, and it right there so we dont have to truck 5 gallon cans.
     
  9. Bearfootfarm

    Bearfootfarm Hello, hello....is there anybody in there.....? Supporter

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    If you use diesel fuel you can buy #2 fuel oil and NOT pay the highway taxes. There should be a cost savings there
     
  10. Ross

    Ross Moderator Staff Member Supporter

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    We buy coloured diesel, it is much lower in cost as there's less tax charged. It is partly a conveinience thing and partly a cost savings thing. Gasoline is only available with the road tax in and you must claim it back. You'd have to be able to prove you used the gasoline on farm. I have a gas tractor now too so I'll have to look into it.
     
  11. jd4020

    jd4020 Well-Known Member Supporter

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    It's my understanding that there is a break for farm diesal fuel for tractors, BUT if you drive a vehicle that uses diesal and if you are stopped and they decide to check the fuel, if you have been using the colored (red) farm tractor diesal you will be fined. That's the reason it is colored. Diesal fuel from the pump for your regular vehicle is clear.
     
  12. Ramblin Wreck

    Ramblin Wreck Well-Known Member Supporter

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    We buy "off road" diesel (which as Ross points out is colored differently than regular diesel). This saves paying the road use tax, which is substantial. The delivery is usually free if you order enough volume. I believe the off road "stuff" is higher in sulphur, and there is a fine of $1,000 times your vehicle tank's volume in gallons if you are caught burning off road fuel in an on road vehicle.
     
  13. Rowdy

    Rowdy Well-Known Member

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    In Texas it is 44 cents (the amount of taxes on it) cheaper for off road diesel. Of course, some places charge a little more if you are not buying too much. Where I buy my fuel I have to buy at least 100 gallons for the cheapest price.
     
  14. DaleK

    DaleK Well-Known Member

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    In Ontario if you get caught with dyed diesel in a highway vehicle they go back 7 years. They figure out how many kilometres you've put on the vehicle in the past 7 years or whatever part of that you've owned it, get the manufacturers estimated mileage for the vehicle, and combine the two and assume that that is how much dyed diesel you've used illegally in the past 7 years. Then your fine is the road tax on that amount of diesel. They can also assume the same for any OTHER diesel on-road vehicles you own even if you haven't been caught with dyed diesel in them. You have to come up with receipts to prove that you bought clear road diesel in that period and if it doesn't match the amount they estimate you used you get fined for the difference.