Total Cost of Ownership Analysis: Diesel vs Electric Agricultural Trucks

Understanding Total Cost of Ownership

TCO represents the complete financial picture of a vehicle over its lifespan, including :

Initial purchase price

Fuel or energy costs

Maintenance and repairs

Insurance and taxes

Depreciation and resale value

For farms, this analysis must also account for duty cycles, range requirements, and infrastructure capabilities . A truck that excels in short-range nursery transport may fail in long-haul grain delivery.

Diesel Trucks: The Incumbent Workhorse

Diesel trucks have long been the backbone of agricultural transport dueto their durability, high-torque performance, and widespread refueling infrastructure.

Purchase Price: Diesel trucks typically have a lower upfront cost compared to electric models, benefiting from established manufacturing scales and market maturity .

Fuel and Maintenance: Diesel fuel costs are volatile and often significant. Maintenance, though regular (e.g., oil changes, filter replacements), is well-understood, and repair networks are robust .

Resale Value: Known for their longevity and reliability, diesel trucks retain strong resale value, especially in industries where electric infrastructure remains limited .

However, diesel trucks face challenges from emissions regulations, noise pollution, and rising fuel prices, which can erode their TCO advantages over time.

Electric Trucks: The Efficient Upstart

Electric agricultural trucks offer a paradigm shift, with TCO strengths that are often scenario-specific.

Purchase Price: Electric trucks currently require a higher initial investment, largely due to expensive battery technology. However, government subsidies and tax incentives can help offset this .

Energy and Maintenance Costs: Electricity is generally cheaper and more stable in price than diesel. For example, one analysis showed electric trucks incurring only 30% of the energy cost of diesel per mile . With fewer moving parts, electric trucks also tend to have lower maintenance costs—averaging $1.2K–$1.5K less annually than diesel counterparts .

Lifespan and Residual Value: While battery degradation can impact long-term value, advancements in battery technology are steadily improving longevity. Larger electric trucks (e.g., 55 kW models) are still in early adoption phases, which affects their resale predictability .

Key limitations include limited range, charging infrastructure requirements, and potential payload penalties due to battery weight, especially in weight-sensitive applications .

Operational Context: Where Each Truck Excels

The optimal choice depends heavily on the farm’s operational profile:

Short-Haul and Light-Duty Tasks: Electric trucks shine in localized hauling, such as transporting produce to nearby markets or intra-farm logistics. Their low energy and maintenance costs can yield a lower TCO than diesel within a few years .

Long-Haul and Heavy-Duty Demands: For long-distance or weight-critical tasks (e.g., grain transport across states), diesel’s range and payload capacity often remain advantageous. Electric trucks may face TCO disadvantages here unless they achieve "Ultimate" cost-reduction targets, such as battery prices falling to $80/kWh .

Duty Cycle Flexibility: Farms with predictable, short routes can maximize electric truck benefits. Those with highly variable or remote operations may still rely on diesel’s versatility .

The Future Outlook: Trends Shaping TCO

Several factors could tilt the TCO balance further:

Technological Advancements: Battery innovation is crucial. As energy density improves and costs decline, electric trucks will become competitive in more segments .

Policy Incentives: Subsidies, carbon pricing, and low-emission zones favor electric adoption. In some regions, electric trucks already receive road access privileges that diesel vehicles do not .

Infrastructure Development: On-farm charging and rural electrification will reduce operational hurdles for electric trucks. Without this, diesel retains a practical edge .

Environmental Costs: As sustainability becomes monetized (e.g., through carbon credits), electric trucks’ zero tailpipe emissions could translate into tangible TCO benefits .

Conclusion: Making the Strategic Choice

For agricultural professionals, the diesel-versus-electric decision is no longer purely about preference—it’s a strategic financial calculation.

Stick with diesel if your operations involve long distances, variable routes, or minimal charging infrastructure. Its proven reliability and lower upfront cost remain compelling.

Consider electric for shorter, predictable routes where lower energy and maintenance costs can achieve TCO parity or superiority. Government incentives may further accelerate payback periods.

Ultimately, the market is evolving toward a mixed fleet approach, where both technologies coexist based on their strengths. By conducting a detailed TCO analysis tailored to their specific needs, farmers can not only reduce operational costs but also drive the transition toward a more efficient and sustainable agricultural future.