Renting Out Grain Bins

[Jim Meade / Iowa City]

I might have some grain bins I don't need next year.  Do any you know anything about renting them out?

One is a drying bin with stirrator, one is a holding bin with a small fan, and one is a holding bin with  a larger fan.

There is electricity.

I'm wondering what problems arise.  Who takes care of repairs on the bins and equipment?  How to tell the difference between fair wear and tear and damage or neglect.  What if the grain goes out of condition and damages the bin?

Any thought are appreciated.

[ECIN]

Jim - We rented 2 bins for 12 years - What we did was pay for all electric - the bins were in need of repair and we took care of that - really we took care of all repairs - even replaced a fan - and unload auger - this was 8 years ago since we rented them - I can't remember for sure , but think we gave her 12 cents the very first year then .15 cents after , she cut us a breck some , because we payed for all repairs -

There are many ways to rent them out - but I think that if the corn went bad and the bins 's needed repaired I would write that in to the contract they would cover all repairs - you asked about abuse - I would think it would be hard to screw one up , other than if they bent the lids or doors - which to me is - they would have to cover that 2 plus any needed repairs .  As far as normal repair - thats up to you - as to what we did - they cut the cost of storeage some and then we took care of all problems - no matter what it was - to me that was great - as it is hard sometimes to hand a bill to an older person that's been out of touch with repair cost on the bins and then when they see a bill for a grand , then they would crap -

Good luck with what ever you do with them -

Ken

[OKdon]

My brother in law bought a building site with three bins on it and he tried to rent them out but found out liability insurance was a problem. He finally sold the bins. Maybe it was just the wrong insurer.

[Kay/NC]

Exactly what I was thinking would hapen, given all the publicity on grain bin deaths.

[buckfarmer]

I rented a small bin in poor condition with no electric for a case of beer each year. The owner wanted it to look used to help with CAUV issues. It was close to my main farm but was hard to get in and out of the property as well as to the bin once you got to it. It was costing me about $.18 per bushel just to use it. Figured it was better just to put some in storage at the elevator.

[buckfarmer]

I think I would try to get a separate insurance policy for the bins. Or risk it and don't tell your insurance company what you are doing.

[idalivered]

Jim, i have rented bins for years. My preference is that i pay by the bushel and by the month (for example i have one that i pay 1.5 cents per bushel per month) but others that are  flat yearly fee.As you well know, with a stirway there can be damaged from just not knowing how to operated them and repairs to stirways can be very very common. Not sure how you deal with that one.

As for electricity, i think the fairest way is to have some type of meter at the site to register just the electricity used, but that is negotiable. I have one landlord that i pay the entire bill for the month i dry corn (including his own as he lives there) and then if i need it during the rest of the year, he just covers it. that has worked since 1999.

[Jim Meade / Iowa City]

I asked my insurance company and they indicated no problem with liability insurance.  I appreciate the heads up, as I'd not have thought  to ask the question if you hadn't mentioned it.