Rates And Expenses (Part 3)

In Part 3 of our five-part series, we begin by looking at what is undoubtedly a relief milker’s biggest expense – driving to their jobs.

Mileage Costs

Chances are, you are going to be travelling a fair bit to reach different farms for your milkings, and mileage costs can seriously affect your earnings. Keep in mind, it’s not just about fuel. It’s also the wear and tear on your tires, plus the quicker you clock up those kilometres then the more often you will need to give your vehicle an oil change and tune up. Subsequently, especially if you are operating as a business, you should ideally be adding mileage on top of your base milking rates. Electricians, veterinarians, and other mobile services charge mileage to travel to farms. So can you.

Determine The Mileage

How far you are prepared to travel to your relief milking jobs is entirely up to you. But you need to keep in mind that driving time is dead time. When you are driving to work, nothing else is being achieved – you are just driving. If the distance to your job is thirty minutes there and then another thirty minutes back home, that is an hour out of your day sitting behind a wheel. If you are milking twice a day on that same job, it will be two hours. That is a fair chunk of time on the road. Some farms could have a smoko room at the shed that you can use during the day between milkings, or they may even have a spare sleepout you can use for overnights. If you have a camper van or something similar then you are pretty well self-sufficient. But not everybody will have those options, so you will need to weigh up the pros and cons for each individual property.

For myself, if the farm is on a twice-a-day milking routine, I like to keep my milkings within a twenty kilometre radius of home, otherwise the driving to and from the shed is going to become tedious, even when charging mileage. If the job happens to be substantially closer to town than home, then I will often camp in the library during the day between milkings with my smartphone and headphones and I will play on the free Wi-Fi or have a snooze. By doing this, I can save myself a ton of driving. I will milk in sheds that are twenty to forty kilometres away from home, if the milkings are once-a-day or the farm is nice and handy to town. For milkings further afield, I only consider jobs that offer housesitting or separate self-contained accommodation.

To calculate the distance between your home and the farms you could be working on, you can use either a GPS tool or even an online calculator, such as this one from the AA:

AA Time & Distance Calculator

Transportation Expenses

Estimate your travelling costs, including fuel, maintenance, insurance, and any tolls. Also, if you need to top up your fuel, are there any service stations en route to and from your jobs? Or do you have to make a detour in order to find one, and how many extra kilometres will that entail?

Negotiate Fairly

When negotiating with farmers, present your calculation of mileage expenses and propose a reasonable reimbursement rate per kilometre. For myself, I currently charge $1.10 per kilometre after the first 10kms. My mileage rate can fluctuate in response to whether the fuel prices are rising or lowering.

GST

If you are registered for GST, you can claim the GST from your fuel purchases. You may want to keep a logbook in your vehicle so you can keep an accurate record of every trip you make, even if it’s just a quick jaunt down the road to the nearest dairy for an ice cream. That way you will be able to work out what percentage of each fuel purchase is being used to travel to your jobs and what percentage is being used for personal trips (e.g. grocery shopping, visiting family and friends). You then claim the GST on the percentage of fuel that was used to travel to your milkings.

Communicate Openly

Effective communication is key to successful negotiations.

Be Transparent

Clearly communicate your rates and mileage costs to farmers from the outset. Transparency builds trust and prevents misunderstandings.

Be Attentive

Understand the farmer’s budget and needs. Be open to discussing their expectations and finding a mutually beneficial arrangement.

Be Professional

Negotiate in a professional and respectful manner. Focus on finding solutions that work for both parties.

Additional Factors

In addition to rates and mileage, consider other factors that may impact your negotiations.

Frequency

Farmers that require your services regularly may be more willing to negotiate favourable terms.

Seasonal Variations

Some areas can have seasonal fluctuations in relief demand. Be prepared to adapt your rates or availability during peak and off-peak periods.

Long-Term Commitments

If a farmer offers ongoing relief work, discuss the potential for rate increases based on performance.