Chances are beyond the wind-whipped, tarp-covered shelter, the stock-piled ancient equipment and the friendly farm dog, you’ll notice a big rig. Apparently just sitting there. Maybe still covered with remnants of the last snowfall. Why is that? Why is that truck just sitting there? It’s costing someone money. Could or should it not be put to better use — for something other than a farmyard ornament? I suppose there may be a few things to consider first.

Semi-trucks have become a virtual necessity in the farm operations of today. Scale dictates that to support itself, a certain threshold of acres must be sown and another “break even” quantity of grain must be harvested. To do this in a timely fashion, the large trucks just make logistical sense. But, you’ve only got so much of your own grain to haul (more so in some years than others), what about working that truck for a neighbour: does it pay?

According to Chad Manz, farmer and budding commercial truck driver, it does. Or, it has. He purchased his super-B trailers late last year. As he sees it, most farms already have semis. Lots of guys will do the short hauls from their yard to the nearest elevator but for those longer hauls, they are looking for the super-B trailers and newer — perhaps more reliable — equipment to get the job done.

Chad is primarily a farmer, now. Last winter he had off farm employment. He didn’t want to go down that road again, so last fall he made a purchase of brand new trailers and is enjoying some of the benefits of being able to remain in his community: coaching a minor hockey team, playing a bit himself and “staying local.” The daily commute is from his farm yard to any neighbouring farm that requires his services.

At the time of purchase he decided to have everything “safetied” (tested to ensure the vehicle meets safety standards) and put commercial plates on. In the few months he’s been going at this, he’s covered off some of the upfront start-up costs of such a side-business — cost like that of having his truck and trailers safetied and the extra insurance and licensing fees. He’s not out anything. As the opportunity arises, he will capitalize and benefit from the diversification. He’s making his payments, staying close to home and expanding the family farm business with yet another revenue stream.

A new business start up

Eric Micheels, an assistant professor in the Department of Agricultural Resource Economics at the University of Saskatchewan, says this is ultimately a business decision to expand and diversify your farm, or not.

You do have to be careful — you are working in a localized market. Is there enough business in your area? He says you need to ask yourself some questions, like has anyone beaten you to the punch? How much competition are you facing?

As the potential owner/operator of another business, you have got to consider the business angles before taking the leap. Factors such as labour availability and reliability, paper work, logistics of lining up the day-to-day operations, additional cost of licensing, insuring, fuel (remember, you’ll go from farm-priced diesel to commercial: on any given day this varies by 13 to 15 cents per litre, sometimes more), time management and the wage of whomever you have driving the outfit. On top of that, you’ve still got your farm to consider and your own commodity to haul.

In Manz’ area of Saskatchewan, both of the local elevators are expanding — doubling their capacity from 50 to 100 car spots — and he wanted to capitalize on that. As local capacity grows, so does the area from which to draw business.

If your farm has just one or two employees, the financial input required for larger trailers and the time commitment of long hauls may not be feasible. That’s where entrepreneurs like Chad come in to play. And he’s happy to pick up the work.

The realities of this diversification will take some real consideration, it could very well be worth your time. If you’ve got a good labour pool that you want to maintain throughout “slower” winter months, perhaps this is a method of keeping them on the payroll — maybe year round — to ensure they are there for you when your crunch time comes. There is always potential to expand as your “local” market begins to encompass a larger area. Word of mouth could open doors you never before knew existed.

If you’re entrepreneurial and like the idea of diversifying your farm operation in this manner you’ll also have to become aware of the rules regarding commercial hauling. In Saskatchewan there are all kinds of regulations as to what you can haul, how far and with what vehicles. Different commodities may have different licensing requirements (i.e. fertilizer is different than grain or livestock).

According to information from Kelly Brinkworth, Saskatchewan Government Insurance (SGI) spokesperson, in Saskatchewan Class C is a restricted commercial plate. There are limits on the goods that may be transported for others.

The cost of plating a highway tractor with commercial (class C) plates is more than twice that of putting Class F (farm) plates on. For the 39,900 kg weights, the difference is a whopping $1,330 for farm to $2,900 for commercial. Additionally, the insurance coverage included with the commercial plates is greatly reduced, thus requiring the purchase of additional damage/accident insurance. Another start-up cost is that of having your commercial vehicle pass and maintain all provincial safety standards. It may also be necessary (and wise) to maintain cargo and additional liability insurance as prescribed under “The Safety and Fitness Regulations,” as defined by SGI. But note: if you put commercial plates on your vehicle this does not restrict or limit you from transporting anything from your own farm operation in the now commercially registered vehicle.

The trailer(s) your unit is pulling will also require a class TS (semi-trailer) plate. Again, additional damage coverage would be required to be purchased separately from your plate coverage.

Increased wear and tear on your vehicles and trailers may also become a factor. Is it worth the depreciation? If things are relatively new or solid, it might be. You can use some of your revenue and put it toward an upgraded vehicle. But if the added work load is going to bring in extra dollars only to see them going out again on costly repairs, you may need to make a capital investment to improve your equipment or consider putting your efforts into other areas.

Manz has already overcome that hurdle. After the purchase of the trailers in late 2015, and some experience (and an idea of the market yet to come) under his belt, he purchased a newer highway tractor in January of this year.

As Chad had stated, this year his cash cow has been the large volume of lower quality durum out there. Farmers looking to market the product further from home has kept him on the road with paying customers. What will it be next year? Nobody knows, but in the event of a lost revenue stream, he’ll pull the “C” plates off and put the old girl to bed in his yard — back under the blanket of snow.

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“Well,” replied the farmer, “there’s my farm hand. I pay him $200 a week plus free room and board. The cook is paid $150 per week, plus free room and board. Then there’s the half-wit who works about 18 hours every day and does about 90 per cent of the work. He makes about $10 per week, pays his own room and board and I buy him a bottle of bourbon every Saturday night. He also sleeps with my wife occasionally.”

“That’s the guy I want to talk to… the half-wit,” said the agent.

“That would be me,” replied the farmer. So that’s where the money goes. Or doesn’t.

I am not begrudging the wages we pay our employees. Absolutely not. As farmers we know that hired help is necessary. Happy hired help means long-term, stable working conditions for all of us, and a farm that functions smoothly makes money to pay everyone’s wages. However, sometimes I wonder if we’re making as much as we’re paying our hired help.

According to the website payscale.com, the average hourly wage for an agriculture worker in Saskatchewan is $18 per hour. The number my accountant quoted (off the cuff) when I quizzed her about “hired-man” wages in my area of Saskatchewan was $25. As I perused the online ads for farm labour, I could not find wages that reflected that wage — it was more in the range of $16 to $20. This is not to say that wages wouldn’t go up as you proved your worth and commitment, but they sure don’t seem to start off at that rate. As I dug to see how Manitoba and Alberta measured up, I found them to be similar.

As each month passes and I see those cheques to the hired men being filled out for more than the one I know is coming my way I wonder: Are we doing this right?

Valuing ourselves

Joe Moffatt of Blue Whale Financial Solutions in Moose Jaw, Sask., says that the business of farming is a culture in and of itself. Farmers treat “The Farm” as an entity like the “most valuable child in the family.” That, from his view, is not the best way to run a business.

Moffatt believes there is psychology behind how much we farmers value ourselves. The farm is not like, for example, a tire shop. The owner of that business gets up in the morning, drives to work, unlocks the doors and starts his day. Not so for “Joe Farmer.” Joe goes to bed in the yard where he works and wakes up looking at the same, every morning. There is no physical (and by extrapolation no emotional or financial) division. But that doesn’t mean there shouldn’t be.

Trying to find an average yearly income earned by a farmer has been a challenge. I was curious to know just what we are paying ourselves. I wanted to know how farmers were doing —really. “Family farm income” is often written about, but always seems to include a blend of off-farm income.

• Read more: How farmers can up their game

Accountant Leah Herback suggests $45,000 is the minimum annual income all farmers should claim. That breaks down to approximately $24 per hour and a 40-hour week. From a tax perspective it keeps you in the lowest tax bracket; from the living perspective, it keeps the lights on. Some take more, some take less, for many different reasons. Overall family income may also be boosted by paying each spouse that $45,000, bringing farm family income to an annual $90,000 payout. Of course this payout can be altered depending on off-farm income.

The Saskatchewan government agriculture website refers to Farm Families as “those involved in a single, unincorporated farm with gross operating revenues of $10,000 and over.” On these types of farms, in 2011, 29 per cent of income was from net farm operating income ($32,979) and 71 per cent ($80,811) was off-farm income, for a total annual income of $113,790. And that’s just according to one definition.

For varying government or non-government organizations, the definition of a farm or farmer varies. Another statistic on the same website, showed a “Farm Operators” average income for 2012 to be $98,929, and of that only 58 per cent or $57,557 to be net farming income. Comparisons are difficult to achieve. I found at least eight definitions of term “Family Farm” on the website.

What are you worth?

In Herbacks’ experience how much a farmer actually pays themselves varies widely. Moffatt concurs. But how much should you pay yourself?

When this question was posed to Moffatt, he suggested you consider how much you would have to pay someone to replace you. What would that take? Remember — you are not irreplaceable. It may take another management style, it may take two people (one for management, another for labour) but you could be replaced. How much would that cost? That should be your salary. You’d pay it to someone else. Why not to yourself?

Moffatt provided current industry standard wages for corporate CEOs, as shown in the table below. These salaries are considered average, legitimate, and reasonable values for income of CEO’s of corporations with gross sales in the different brackets.

Every farmer is going to have to decide what is reasonable, realistic and liveable.

If the money isn’t there, it isn’t there. It’s the bottom line of any business and it’s no different here.

There are many factors to consider; emotions and family pressures also comes into play. It’s not necessarily about what the farm can afford to pay, but about what the farmer thinks they need to live. Most of us are not extravagant. Most of us would rather take less for ourselves and give more to that laborer or put it back into the farm than give ourselves a cash injection.

Cash in the pocket is not the only way we as farmers are compensated. There are perks that maybe we don’t always recognize. There are definite areas where we quietly benefit, although the wage that is coming in the door at the end of the month may seem meager in comparison to the cheque that was just written to a hired helper. Consider fuel, gas, propane, electricity, phone, taxes — these are all costs most likely off-set by the farm. Meaning: it’s not money out of your personal pot, but actually paid for by the farm before you even realize it has been covered. At the end of the year, your accountant has used a percentage of the overall costs as personal (and you will pay this) but the majority is absorbed, relatively painlessly, by the farm.

There is no black or white. It’s all grey and each farm has to structure itself and its resources using information and ideas gleaned from the sources around them to decide what will work for them. Realizing the wages paid to employees are an investment in the future of your farm company and that that the almighty dollar is not the only reason we are doing this may help alleviate any feelings of discontent when those cheques are written. It’s not a cross anyone bears, it’s the realities that farmers are willing to accept.

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If you’re a farmer thinking about getting licensed to drive a semi, and something is holding you back, think again. Remember, it is not rocket science — it is, in fact, not science at all. So, how difficult is it?

The road to the road

The procedure is consistent across the Prairies, although there may be some minor differences and some differing name classifications.

In Saskatchewan, the endorsement is an “A” for air brakes. In Manitoba, its “S” (slack adjuster endorsement) or an “A” endorsement. In Alberta the air brake endorsement is called a class “Q.” But not to worry whether it’s an A, S or a Q, it means the same and is valid across Canada.

So to start at the beginning: first the decision is made, for whatever reason, to obtain your 1A. That’s simple enough. If you are over 18, hold a valid license in any of the 5, 4, 3, or 2 classifications, and are not a “novice” driver you can begin the process.

Before you can take your driver’s test, you must apply for your 1A leaner’s permit. This involves a few steps. You will need a medical exam. Your doctor will check all basic functions as well as ask you about any seizure, fainting or substance-abuse disorders.

Once the medical has been accepted by the licensing agency, you can set up an appointment to write the test for your 1A learner’s permit. This is a series of seven “mini” exams — all multiple choice. Questions are specific to each class of vehicle, air brakes and road signs. The cost is minimal ($10) and you may repeat it on subsequent days, if needed.

That completed and passed, you would now have a class 1A learners permit which means you can drive the big rigs — as long as a driver with a valid 1A and at least three years experience is sitting beside you. Once that hurdle has been cleared, you can choose to enrol in a drivers training program or practice on your own. If you practice on your own, be sure to use the knowledge of your teacher, but also the “professional drivers handbook” for information specific about circle checks (pre-trip inspections), air brake adjustments, coupling and uncoupling. This way, you learn to do it “by the book” as this is what the examiner will specifically look for during the practical test.

Getting schooled

If you choose to enrol in a professional driving school, look for one accredited by the driving authority (i.e. SGI in Saskatchewan). The content of all the training schools is quite similar, and there were usually at least three options, ranging from one-, two- or three-week programs. You may also choose to pay by the hour for “refresher” courses, but generally a minimum one-week course is recommended. In the classroom you will be given a chance to discuss all the requirements for the practical test as well as things such as how to complete logbooks, coupling and uncoupling, dollying down/up the trailers, chaining the tires as well as plenty of in-truck driving experience and critiquing.

The fees vary from province to province and school to school. I checked several in each of the Prairie provinces and found the cost to range from approximately $2,000 to $2,700 for a one-week course (20 hours of hands-on driving, plus classroom time and observation while in the truck), and up to $5,000 to $6,000 for a three-week (40 hours driving) program.

Me, in the cab

I chose the two-week option. Although I was quite comfortable driving large farm equipment and tandem axle trucks, I had little to no experience with the long trailers on the semis. (As I had to travel and stay at a far-away city, it was also a chance for my husband to bond with our children and appreciate me even more).

When you do go for your actual road test — and this can be done either by an instructor at your school (if accredited and if initiated by the school) or at the government licensing body.

If you have chosen to not attend a training course, you are responsible to arrange for your own (legal) truck and trailer for the road test. If you are enrolled with an instructional school, they will usually allow you to use their equipment for this purpose — it’s part of your tuition. The cost for this portion (which, again, if you have gone through a school is likely included in your fee) is $55. You will be asked to show your knowledge of air brake adjustment, a pre-trip (circle check) inspection, and actually handling the vehicle on the road.

My road test was done late November in a snowstorm. Not ideal driving conditions, but an excellent opportunity to demonstrate my newfound capabilities.

As I said, it isn’t rocket science — if you can drive a manual transmission, you can drive a semi. Like anything, it takes practice, patience and time to refine the skills to be comfortable in most situations. It’s like so many things in life — easy to learn, a challenge to master.

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