Renting out silos to keep grain is a smart move for a farmer since the commercial systems cannot store the entire produce. As a farmer, you will be able to get good prices when selling the produce later on as prices tend to be lowest during harvest. However, if you do not have the means to store them, you will have to consider silo rentals.
You have to rule out on the amount of storage required. The amount of space is decided on by the bags of grain you harvested. If they are less, small silos are needed but if you have many bags, consider looking for large silos. You should be careful when selecting a bin as making the wrong decision will only cost you more money.
The location of the silos will have to be decided on from where your farm is to where the bins are for leasing. It needs to be at an area where you can easily reach it from time to time. In addition, grain trucks ought to be able to reach the stores so that the produce can be loaded and unloaded. Search for neighbors who lease their bins or the ones that are readily available.
Availability of labor will also have to be determined. Stored grains must be maintained so as to remain in the best condition. The maintenance practices must be carried out by workers. Inquire from the owner if labor will be provided or you will have to look for your own. Compare the two options to determine the one that is cheaper.
Conclude on the time frame you need the storage units. This is normally from the harvesting time to a phase when you may be selling. Check your timetable and rule out your possibilities so that you provide the owner with the correct information. This information is required so that the charges you ought to pay are computed.
Inquire about the silo renting options. Most of the owners charge per month or the entire year. The fixed rate in a year normally is an annual rate for the right to utilize the grain storage. For monthly charges, rent will be charged only for the months which the bin is used. This method is effective as you only pay for the months you used the storage as opposed to paying an annual fee as you may not end up using it for the entire year.
Discuss with the owner about the payment schedule. The both of you should come up with a renting agreement that will protect you. It should be specified whether a minimum charge should be paid at the start of the leasing period with the remainder paid when grain is removed. Or, it needs to state whether the entire amount needs to be realized before the bin is used.
Another aspect is the charges for electricity. Electricity is needed in drying and maintaining the quality of grain. As you will be told to make the payments, there should be a separate meter in place for recording the definite amounts. This way, you will be able to only pay for the used electricity.
You have to rule out on the amount of storage required. The amount of space is decided on by the bags of grain you harvested. If they are less, small silos are needed but if you have many bags, consider looking for large silos. You should be careful when selecting a bin as making the wrong decision will only cost you more money.
The location of the silos will have to be decided on from where your farm is to where the bins are for leasing. It needs to be at an area where you can easily reach it from time to time. In addition, grain trucks ought to be able to reach the stores so that the produce can be loaded and unloaded. Search for neighbors who lease their bins or the ones that are readily available.
Availability of labor will also have to be determined. Stored grains must be maintained so as to remain in the best condition. The maintenance practices must be carried out by workers. Inquire from the owner if labor will be provided or you will have to look for your own. Compare the two options to determine the one that is cheaper.
Conclude on the time frame you need the storage units. This is normally from the harvesting time to a phase when you may be selling. Check your timetable and rule out your possibilities so that you provide the owner with the correct information. This information is required so that the charges you ought to pay are computed.
Inquire about the silo renting options. Most of the owners charge per month or the entire year. The fixed rate in a year normally is an annual rate for the right to utilize the grain storage. For monthly charges, rent will be charged only for the months which the bin is used. This method is effective as you only pay for the months you used the storage as opposed to paying an annual fee as you may not end up using it for the entire year.
Discuss with the owner about the payment schedule. The both of you should come up with a renting agreement that will protect you. It should be specified whether a minimum charge should be paid at the start of the leasing period with the remainder paid when grain is removed. Or, it needs to state whether the entire amount needs to be realized before the bin is used.
Another aspect is the charges for electricity. Electricity is needed in drying and maintaining the quality of grain. As you will be told to make the payments, there should be a separate meter in place for recording the definite amounts. This way, you will be able to only pay for the used electricity.
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