The process of purchasing farm fuels such as diesel is vital. The factors that influence the decision to buy farm fuels in Cheshire include potential fuel loss, storage life and the financial as well as legislative implications of large scale on site storage. There are several buying strategies that can help farmers to negotiate the best price, maximize their return on investment and avoid wastage.
One of these tips is keeping good records about the fuel you use. This can help you plan for purchases in advance. Fresh fuel works more efficiently than aged fuel. For this reason, you can plan the delivery of fuel when the demand is high.
It is also essential to synchronize you fuel buying cycle. This means you should plan ahead for expected summer or winter fuel changes. For instance, you can restock in the summer for your winter fuel needs.
Buying fuels from a supplier that guarantees the quality of fuel is also essential. It is important to work with a supplier who offers detailed delivery data in a format which facilitates your own fuel management and record keeping system. In order to store fuel successfully on your farm, make sure that the tanks are well sealed to keep out water and dust. You should also install filtration devices on the tanks.
Keeping diesel clean is imperative. As diesel gets older, gum and fine sediment form in it due to the reaction of diesel components with oxygen. The gum and sediment can block fuel filters in engines and lead to fuel starvation. The engine also stops functioning when the filters are blocked. You will then have to change the filters frequently to keep the engine running.
The sediment and gum does not burn efficiently in engines and can cause soot and carbon deposits on combustion surfaces. These issues can be worse if you are storing large amounts of fuel. You can prevent them by using the different tools available for continuous tank filtration, on vehicle filtration and filtration at delivery.
Another factor to consider when buying farm fuels is the cost. The price of fuel fluctuates due to a number of factors such as the crude oil spot market, demand and supply factors like world GDP growth and government taxes. You can save money by buying farm fuels in bulk. However, this may not be a viable strategy because of the expense of storage, the relatively storage life of diesel, security concerns and the strict regulatory requirements of storing flammable fuels on farms. To take advantage of the discounts that suppliers offer for fuel bought in bulk, you may establish or join a buyer group or cooperative, which will act as a broker.
As a farmer, you know your fuel buying patterns in relation to your farming operations. What you may not know is the external forces, which dictate the reliability of your fuel supply chain. Therefore, it is advisable to communicate frequently with suppliers in order to know about the market and be ahead of any pricing or supply issues that may arise.
