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If the tenant desires to lease the grain storage beyond that time, a new leasing arrangement should be made. 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. 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. I need to find a source from which I can rent manual grain bin jacks in (or near) Bloomington, Illinois. A common method is to charge a rental rate similar to what others are charging. Computing a Grain Storage Rental Rate.
A Decision Tool (electronic spreadsheet) is available to help estimate ownership for both grain bins and drying equipment (see Decision Tool C2-24). For custom drying changes see AgDM Information File A3-10, Iowa Farm Custom Rate Survey. Bin Jacker Supply has Bin Halos for any size job. Need to rent grain bin jacks in Bloomington, Illinois. Rent per year or per month. In the case of a drying bin, separate charges can be made for each bushel dried and each bushel stored. Grain bin relocating is now EASY. For example, a bin costing $65, 000 initially, repair costs could be estimated at $650 per year ($65, 000 x 1. The payment schedule should also be considered. It is suggested that the grain must be removed from the storage facility by Sept. 1. Bin Halo - Grain Bin Relocating Equipment for Sale.
Updated August, 2014. For example, the first year the bin is worth $65, 000, but each year thereafter the value declines due to depreciation. 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. Have questions or looking for something not listed on the website? Bin Jacker Supply has everything you need from parts for grain bin jacks and virtually any brand of grain bin jacks.
It is a way of spreading the cost of the grain bin over its expected useful life. Management of grain. Depreciation is the portion of the original cost of the grain bin that is counted as an expense each year. Nevertheless, commercial storage rates serve as an unbiased indicator of storage costs that reflect current supply and demand for grain storage. The farm storage rate is estimated to range from 10 cents (15 x 2 / 3 = 10) to 21 cents (28x 3 / 4 = 21). So the average value over the useful life is $32, 500, halfway between $65, 000 and $0. The rental arrangement can specify that a minimum charge is paid at the beginning of the lease period with the remainder due when the grain is removed, or the entire amount can be paid when the grain is removed. Is there a simple and uniform method of figuring a rental rate for farm grain storage? In most states no property tax is assessed on equipment. Some useful guidelines are outlined below. For a $65, 000 grain bin, annual depreciation is $2, 600 (4 percent x $65, 000 = $2, 600).
Taxes can be figured by multiplying the local property tax rate times the assessed building value. For drying and handling equipment use 3 to 5 percent of the original purchase price. Similar calculations can be made if the bin is equipped with drying equipment, as well. An example of estimating the annual ownership costs of a grain storage bin is illustrated in Table 2. Call today for a free quote on renting the 1st choice jack of grain bin builders in America! Taxes and Insurance. William Edwards, retired economist. Rent can be charged for the entire year or for each month the grain is in storage. The ideal situation is to have a separate electric meter for the grain storage bin so the actual electricity cost is known. A Sept. 1 provision makes the storage facilities available for the upcoming crop.
As an alternative, use one percent of the original purchase price. Current Market Rates. Estimating a fair rental value for farm grain storage can be based on: - current market rates. Need them for a few days beginning memorial day. Serving Central Kansas including Grand Island NE, Kearney NE, North Platte NE, Hastings NE, Paxton NE, Gothenburg NE, Maywood NE, Holdrege NE, Lexington NE, Wood River NE and surrounding communities with all your equipment & tool rentals, new equipment sales, contractor supplies, and parts & repair services. Insurance costs can be obtained from the insurance policy or use one-half percent of the original purchase price. Electricity is another cost usually paid by the grain owner. A custom rate fee for managing stored grain can be found in Information File A3-10, Iowa Farm Custom Rate Survey. Generally, this is the owner of the grain, i. e. the renter. Most on-farm storage is rented for a yearly rate since it usually cannot be used more than once a year.
Other Considerations. The lease agreement should clearly state who is responsible for managing the grain so as to minimize spoilage and other damage. Bin Halo Lifting Slings are 2" inches wide and made with high quality materials. With this method the bin might be used for one month, six months, or all twelve months of the year. The most significant ownership costs are: - depreciation. However, there may be just a single electric meter for the entire farm, so the electricity usage may need to be estimated. Ford 8n, case 1840 skidsteer, brushcat, vermeer backhoe attchment, 72" smooth bucket, 60" toothed bucket, KK 5 foot BB. Return on Investment. New Bin Halo Shackles are 100% made in the USA.
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. The estimated total cost is $102. With a monthly charge, rent is charged only for the months that the storage bin is used. For example, to compute a farm storage rate for corn for six months, first identify the commercial rate. 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. The Bin Halo is a simple set up and work can be done with a 2 man crew. Table 1 shows the expected useful life of grain storage and drying equipment. If anyone knows where I could rent them, you'd be doing me a GIGANTIC favor if you could tell me where. An example will help illustrate.
Give Tom Schorn a call at 605-321-5028 - if he doesn't have it, he can find it! Remember, the fixed location of buildings often narrows the market to only a few prospective renters.