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Senior Advisor

What Is A Used Bin Worth?

About 8-10 years ago, I built a dryer bin with floor and stirring machine on my sister's farm which I rented.  It has a 10 hp axial fan and heater.  It has a tube under the floor but no auger (I always vacced grain out the door, although I might take a load out of the tube by vac to core the bin).

 

It is 6800 bu to the eave.  Proabably about 6000 bushel if the stirrator is running.  About 7,000 bushel if the stirrator is shut off and the bin is peaked.

 

It is in good repair in all regards.  

 

Some day, some year, I may give up renting the farm.  I'm trying to figure out what a fair price for the bin is.

 

One might say she should give me nothing - I've used it and if I want any value out of it I can move it.  If I had to, I could indeed move it and use it, although at my age I'm almost inclined to just build a new bin where I want it.

I could also say that it would enhance rental value of her farm if it stayed.

We aren't going to have an argument about this.  We wil work something out.  Taxes are $175/year.  Repairs have been zero.

 

I'm thinking the bin should be good for 10-15 years.  If she rented the bin or increased the farm rent by $1000 per year she should be able to figure on $10,000 or more over the 10 years of additional life.

 

I don't remember, but think I paid about $10000 for it 11 years ago.  In addition the concrete and electrical work would have to be added.  I erected it.  I suppose put in place it was worth about $15-16k at the time.

 

I'm thinking in terms of asking her $5K for the bin.  

 

Can she get $1,000 per year rent for it?

If you were trying to get along and not one person or the other cut someone's throat, what price do you think it is worth?

 

The bin I'm thinking of putting up will be smaller and probably cost $10,000 when I'm done.  If she says she doesn't want it or if she won't offer what it is worth, then I can either sell the 6,000 bushel bin or I can move it.  It's about a 2 mile road tri to my farm if I move it.  So, if I can move it for $5,000, I'd be as well off to keep it if she offers me less than $5,000.  The benefit of building a new bin is that it's just simpler and cleaner to start over rather than disassemble and move mine.

 

 

 

 

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11 Replies
Senior Advisor

Re: What Is A Used Bin Worth?

Just give her the bin and erect yourself a new one. Why would you even entertain the idea of starting a feud over something small as $5000. Is $5000 chump change, nope not in my book it isn't. Is $5000 chump change, yep it is in my book if it will prevent a family feud. Just my nickels worth.
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Senior Advisor

Re: What Is A Used Bin Worth?

What in the world are you talking about?  There will be no feud.  We get along fine.  I'm simply looking for what would be considered a fair value price from both sides.  She will get a bin to rent out, I will get some residual value.

 

Good grief!  Where did you get the idea we'd not be able to get along on this?  I'll move the bin in a heartbeat if she prefers.

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Senior Advisor

Re: What Is A Used Bin Worth?

I hope you are correct in saying there will be no feud.  I've learned that when money is involved (especially with family) feuds can get started very quickly and blown out of context very quickly.  She might not be upset now, but remove an improvement from her property where it is possible to reduce her future income and you just might have an issue.

 

Never did I imply you didn't get along or there would be future problems, but this scenario has the makings of troubled waters ahead.  You asked a question and I gave what I thought was an honest reply.  Good luck in what ever you decide.

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Senior Contributor

Re: What Is A Used Bin Worth?

I rent a similar size bin for a case of beer each year. It is older and pretty rough but everthing works. And if the owner wanted to sell it I wouldn't give anything. If it was on a farm I was renting I would pay more to rent it also. Maybe Shaggy was on to something. some people can read way to much into things. just asking the question would get some relatives upset
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Senior Advisor

Re: What Is A Used Bin Worth?

Buck, you tight wad, should be worth at the very least a 30 pack.  LOL

 

FWIW, I've got 3 grain bins with aeration floors (No drying capability) that I haven't used for several years.  On farm storage just isn't popular in this area.  In fact, I am one of the few that still has bins standing.

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Advisor

Re: What Is A Used Bin Worth?

Jim, this is a tough one.It has some value for you, but little to most anyone. I'd guess that you would have to figure what benefit you gained by having it there for the time you were able to use it. I still  own and rent some bins with stirways. they work, but fewer people all the time are willing to put up with their quirks. I've rented bins and have some bins on rented farms that I am required to pay rent on. I would not pay $1000 per year for it. I've moved several bins (for myself) and would not pay that for the bin. a 7000 bu. bin is too small for most operators , so consequently litle value. If she gave you th option to remove it, what would you pay, ask for rent etc. If you offered it to me I would pay $800 and you could keep the stirway and the fan. $200/ton, maybe? I'm not trying to be harsh , but you asked.

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Senior Advisor

Re: What Is A Used Bin Worth?

Jim and his sister may actually like each other and may not be interested in getting the best of each other. Even if they disagree, they may find a cordial solution.

 

Jim always has the option of dismantling his bin and removing it from the property. I'm betting he would do that before engaging in a confrontation.

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Senior Contributor

Re: What Is A Used Bin Worth?

Last year, my brother bought a used 7500 bushel bin, with full drying floor, 7.5 HP drying fan with heater and propane tank, spreader, and unloading auger for $1500.   There was no stirrater inside, and he wound up selling the propane tank for $500 (the company we deal with charges $10 a year rent for a tank, and that includes upkeep/repair of the valves and lines to the burner, so that was a no-brainer)

 

The value is a difficult thing to come up with, as you likely wouldn't get much over $1000 for it, if you were to sell, because by the time it is said and done, it willl likely take almost $5k just to get it moved and set up at a new location.   However, if on-site, and it will be used, you don't have to account for moving fees.  Tough one to call, in that respect.  All I can say is that I wouldn't give you more than $1500 for it, with the stirrator included, maybe less if the down auger or augers were shot.

 

As to rent $1k per year is 17 cents per bushel, which is between 3 & 4 cents per bushel storing it to March, which is about what a commercial elevator would charge.

 

 

I think that LEGALLY, it is your property, on her land, and it is up to you to remove it, unless other arrangements can be agreed to.   Keep in mind, if you do sell it, there will be a concrete pad, which I belive might be your responsibility to clean up, as well if your sister asks you to.

 

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Senior Advisor

Re: What Is A Used Bin Worth?

Interestingly, one dealer I talked to about moving it offered to dismantle and buy it from me and sell and erect a new bin which suits my needs on my home farm.  He's working up some numbers.    My sister is still thinking about buying it, too.   So, I have a number of options.  The question is what will anyone pay for it and that question is a work in progress.

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