السبت، 29 سبتمبر 2018

Factors To Consider On Silo Rentals

By Frances Kelly


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 should first consider the size of storage you require. This mostly is determined by the amount of produce you have. If you have many bags, consider renting bigger bins. However, if the amount is smaller, a smaller bin will do. Keep in mind that the bigger sizes are quite costly when compared to smaller ones hence you should make the correct choice so that you do not end up paying extra for space not needed.

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 important aspect you need to discuss with the owner is electricity cost. Most of the renters will demand you pay for these charges. It is therefore important you request for a separate meter for the storage bin to allow you to know the actual cost. This prevents you from paying for electricity you did not use.




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