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.
The first consideration is the amount of storage you need. The amounts of storage will be dictated by the volume of grain you have. If there are many bags that need storage, you will have to look for bigger or more storage. If the bags are less, smaller or lesser storage bins will be needed. You should know that the larger silos are expensive when contrasted with smaller types.
Another consideration is the distance from the storage area. Location is very important as trucks should be able to easily reach the site and maneuver for loading and unloading. Looking for silos near your area or renting your neighbors can be a good idea. Check with the other local farmers who plant on a large scale. They tend to have bigger silos or look for dealers who provide the space for business purposes.
Labor availability is important throughout the entire renting period. As you are storing grain, there are a number of activities that will have to be carried out for preservation. Chances are that the owner may not provide you with labor and if he or she does, be prepared to pay. Do a comparison on whether yours or his labor is cheaper so as to save on costs.
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.
Ask the owner about the renting options. Many of them require to be paid on a monthly or yearly basis. The fixed rates per year are the annual rates for the right for usage of these bins. For the monthly rates, you will be charged for the number of months the silos were used. Opt for monthly rates as it is a cheaper option and you may most likely not need it for a whole 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.
The cost of electricity should also be discussed. Electricity is required in maintaining the produce. You most likely will be required to pay for the charges. In this case, ask for a meter separate from everything else so that the actual cost can be recorded. This way, you only get to pay for what you used.
The first consideration is the amount of storage you need. The amounts of storage will be dictated by the volume of grain you have. If there are many bags that need storage, you will have to look for bigger or more storage. If the bags are less, smaller or lesser storage bins will be needed. You should know that the larger silos are expensive when contrasted with smaller types.
Another consideration is the distance from the storage area. Location is very important as trucks should be able to easily reach the site and maneuver for loading and unloading. Looking for silos near your area or renting your neighbors can be a good idea. Check with the other local farmers who plant on a large scale. They tend to have bigger silos or look for dealers who provide the space for business purposes.
Labor availability is important throughout the entire renting period. As you are storing grain, there are a number of activities that will have to be carried out for preservation. Chances are that the owner may not provide you with labor and if he or she does, be prepared to pay. Do a comparison on whether yours or his labor is cheaper so as to save on costs.
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.
Ask the owner about the renting options. Many of them require to be paid on a monthly or yearly basis. The fixed rates per year are the annual rates for the right for usage of these bins. For the monthly rates, you will be charged for the number of months the silos were used. Opt for monthly rates as it is a cheaper option and you may most likely not need it for a whole 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.
The cost of electricity should also be discussed. Electricity is required in maintaining the produce. You most likely will be required to pay for the charges. In this case, ask for a meter separate from everything else so that the actual cost can be recorded. This way, you only get to pay for what you used.
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