The rate of return on investment can be the rate at which money is borrowed, the rate at which money can be invested, or somewhere in between. Farm storage rates tend to be below commercial rates because the renter must provide labor, manage the grain in storage, and assume the risks of spoilage and shrinkage. This amounts to a six-month commercial rate of from 15 cents (9 + (2 x 3 mo. ) Need them for a few days beginning memorial day. Bin Jacker Supply has everything you need from parts for grain bin jacks and virtually any brand of grain bin jacks. An example will help illustrate. For example, return on investment is $1, 625 for a $65, 000 grain bin. Some useful guidelines are outlined below. As an alternative, use one percent of the original purchase price. With this method the bin might be used for one month, six months, or all twelve months of the year.
Bin Jacker Supply has Bin Halos for any size job. Other Considerations. The estimated total cost is $102. This is figured by multiplying one-half of the original investment ($32, 500) by a return on investment of 5 percent. The Bin Halo is a simple set up and work can be done with a 2 man crew. For drying and handling equipment use 3 to 5 percent of the original purchase price. Serving Central Kansas including Grand Island NE, Kearney NE, North Platte NE, Hastings NE, Paxton NE, Gothenburg NE, Maywood NE, Holdrege NE, Lexington NE, Wood River NE and surrounding communities with all your equipment & tool rentals, new equipment sales, contractor supplies, and parts & repair services. Let's use a 10 horsepower (h. p. ) fan motor running 100 hours, a 2 horsepower stirator running 50 hours, and electricity cost of $. The fixed rate per year is an annual charge for the right to use the grain storage. A Decision Tool (electronic spreadsheet) is available to help estimate ownership for both grain bins and drying equipment (see Decision Tool C2-24).
So the average value over the useful life is $32, 500, halfway between $65, 000 and $0. The electricity used by the fans and stirators can be estimated by multiplying the number of hours each motor runs by 85 percent of the horsepower rating of each motor, by the cost per kw-hr of electricity used. Call today for a free quote on renting the 1st choice jack of grain bin builders in America! Have questions or looking for something not listed on the website? The farm storage rate is estimated to range from 10 cents (15 x 2 / 3 = 10) to 21 cents (28x 3 / 4 = 21).
However, in some cases it may be more convenient for the owner of the bin to check the grain and turn fans on or off. Bin Halo - Grain Bin Relocating Equipment for Sale. Return on Investment. Remember, the fixed location of buildings often narrows the market to only a few prospective renters. For example, to compute a farm storage rate for corn for six months, first identify the commercial rate. Rent can be charged for the entire year or for each month the grain is in storage. In the case of a drying bin, separate charges can be made for each bushel dried and each bushel stored. Average grain storage rental rates can be found in the Farm Building Rental Rate Survey (North Central Farm Management Extension Committee) and AgDM Information File A3-10 Iowa Farm Custom Rate Survey. Taxes and Insurance. Return on investment in the facility is calculated by multiplying an expected return on investment (annual interest rate) by the average value of the grain bin over its expected useful lifetime. Only one-half of the original purchase price is used because, over the life of the bin, its average value is only half of its purchase price.
It is a way of spreading the cost of the grain bin over its expected useful life. Nevertheless, commercial storage rates serve as an unbiased indicator of storage costs that reflect current supply and demand for grain storage. A common method is to charge a rental rate similar to what others are charging. So farm storage rates can be based on commercial rates minus an appropriate discount. Taxes can be figured by multiplying the local property tax rate times the assessed building value.
It is suggested that the grain must be removed from the storage facility by Sept. 1. Give Tom Schorn a call at 605-321-5028 - if he doesn't have it, he can find it! Depreciation is the portion of the original cost of the grain bin that is counted as an expense each year. Grain bin relocating is now EASY. Insurance costs can be obtained from the insurance policy or use one-half percent of the original purchase price. A custom rate fee for managing stored grain can be found in Information File A3-10, Iowa Farm Custom Rate Survey. The most significant ownership costs are: - depreciation. For custom drying changes see AgDM Information File A3-10, Iowa Farm Custom Rate Survey. If anyone knows where I could rent them, you'd be doing me a GIGANTIC favor if you could tell me where. Bin Halo Connecting Shackles are made with heavy gauge steel and baked on paint.
Electricity is another cost usually paid by the grain owner. New Bin Halo Shackles are 100% made in the USA. In most states no property tax is assessed on equipment. Updated August, 2014. However, there may be just a single electric meter for the entire farm, so the electricity usage may need to be estimated. Repairs are needed to maintain the bin in a usable condition.
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