Friday, 28 September 2018

Effective Pointers On Silo Rentals

By Frances Kelly


As a farmer, you should think about how you will be able to store your farm produce. Silo rentals can enable you to store all your grains as the commercial buyers may not have enough space to keep bought produce. On the other hand, you certainly will get good amounts from selling the produce after some time since they fetch higher prices when grain is scarce.

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.

The length of time you require the bins must also be outlined. You probably require storage from harvesting until the time you may want to sell your produce. You should be sure of the duration you require the space for correct charges to be calculated and also for you not to inconvenience the owner in any way. Notify the owner if you need it on a permanent or temporary basis.

Inquire about the renting options. The two main options include monthly or yearly fees. The standard amounts per year basically are the yearly costs for the right to store. For the charges per month, the grain owner will have to pay for the months the bins were in use. The one you select depends on your needs. In spite of this, paying after every month is cheaper as you only get to pay for the months you used the silos.

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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