Thursday, September 27, 2018

Factors To Consider On Silo Rentals

By Frances Kelly


Looking for storage bins to store your produce after harvest is a good idea. This is because there may not be enough space for commercial buyers to keep the entire produce from every farmer. You will also be able to benefit from storing as you can sell it at significant amounts later on as prices are very low during harvest. If there is no way you can store your own grains, look for 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.

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.

Think about how you will get the workforce. During storage, there are a number of events that need to be realized to ensure that quality is maintained. Some of the owners can provide you with the workforce while others may not. In such a case, you may have to come up with your own team. However, before making a decision, confirm whether your own workforce is cheaper or the one you are being offered.

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 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.

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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