Computing a Grain Storage Rental Rate. Need them for a few days beginning memorial day. Most on-farm storage is rented for a yearly rate since it usually cannot be used more than once a year. For custom drying changes see AgDM Information File A3-10, Iowa Farm Custom Rate Survey. However, in some cases it may be more convenient for the owner of the bin to check the grain and turn fans on or off. I need to find a source from which I can rent manual grain bin jacks in (or near) Bloomington, Illinois. The ideal situation is to have a separate electric meter for the grain storage bin so the actual electricity cost is known. Some useful guidelines are outlined below.
Taxes and Insurance. Depreciation is the portion of the original cost of the grain bin that is counted as an expense each year. Average grain storage rental rates can be found in the Farm Building Rental Rate Survey (North Central Farm Management Extension Committee) and AgDM Information File A3-10 Iowa Farm Custom Rate Survey. That is up to a 60ft. If the tenant desires to lease the grain storage beyond that time, a new leasing arrangement should be made. Electricity is another cost usually paid by the grain owner. If anyone knows where I could rent them, you'd be doing me a GIGANTIC favor if you could tell me where. Estimating a fair rental value for farm grain storage can be based on: - current market rates.
Similar calculations can be made if the bin is equipped with drying equipment, as well. The electricity used by the fans and stirators can be estimated by multiplying the number of hours each motor runs by 85 percent of the horsepower rating of each motor, by the cost per kw-hr of electricity used. The lease agreement should clearly state who is responsible for managing the grain so as to minimize spoilage and other damage. To estimate annual repair costs use a rate of one to two percent of the original purchase price of the storage bin. 15) to 28 cents (16+ (4x 3 mo. ) Ford 8n, case 1840 skidsteer, brushcat, vermeer backhoe attchment, 72" smooth bucket, 60" toothed bucket, KK 5 foot BB. The most significant ownership costs are: - depreciation. It is a way of spreading the cost of the grain bin over its expected useful life. Updated August, 2014. The rate of return on investment can be the rate at which money is borrowed, the rate at which money can be invested, or somewhere in between. For example, return on investment is $1, 625 for a $65, 000 grain bin. Rent per year or per month. Is there a simple and uniform method of figuring a rental rate for farm grain storage?
Return on investment in the facility is calculated by multiplying an expected return on investment (annual interest rate) by the average value of the grain bin over its expected useful lifetime. We have up to ten hydraulic bin jacks available for rent. Give Tom Schorn a call at 605-321-5028 - if he doesn't have it, he can find it! This is figured by multiplying one-half of the original investment ($32, 500) by a return on investment of 5 percent. For a $65, 000 grain bin, annual depreciation is $2, 600 (4 percent x $65, 000 = $2, 600). Bin Jacker Supply has Bin Halos for any size job. Table 1 shows the expected useful life of grain storage and drying equipment.
A common method is to charge a rental rate similar to what others are charging. Bin Halo Connecting Shackles are made with heavy gauge steel and baked on paint. Nevertheless, commercial storage rates serve as an unbiased indicator of storage costs that reflect current supply and demand for grain storage. A custom rate fee for managing stored grain can be found in Information File A3-10, Iowa Farm Custom Rate Survey. Farm storage rates tend to be below commercial rates because the renter must provide labor, manage the grain in storage, and assume the risks of spoilage and shrinkage. For example, the first year the bin is worth $65, 000, but each year thereafter the value declines due to depreciation. This amounts to a six-month commercial rate of from 15 cents (9 + (2 x 3 mo. )
Let's use a 10 horsepower (h. p. ) fan motor running 100 hours, a 2 horsepower stirator running 50 hours, and electricity cost of $. The payment schedule should also be considered. The Bin Halo is a simple set up and work can be done with a 2 man crew. Management of grain. We will bring the jacks to you along with a highly experienced member of our team who will be responsible for ensuring the jacks perform at the best level possible to suit your needs. A Sept. 1 provision makes the storage facilities available for the upcoming crop.
Have questions or looking for something not listed on the website? Remember, the fixed location of buildings often narrows the market to only a few prospective renters.