http://www.mycentralnebraska.com/2015/09/01/renting-out-on-farm-bin-storage/Slow to reply but looks like plenty of good advice. Someone suggested renting for the crop year... I would agree with that. Would be rare for someone to store a full year. Figuring Sept harvest and sold by following July that's 10 mos max so charge for 5-6 flat rate 5 x 20k x .04 = $4,000 for the crop year. Unless you want to do the math. Storage due when grain is loaded out. If the renter needs deduct for tax they could prepay you flat rate in 19, but not sell the grain until 20.
If you get solid bid on repairs let your renter pay for it direct as part of first year and net against agreed upon rent.
Guys store for logistics not just price. They just need the grain in a bin and don't want to wait 3 hours in a dump line at the local elevator. That should factor in the valuation.
Look at local bids to determine the "carry" in the market... harvest price vs delivery next July. That will give you indication of what the market is paying for storage too. Just futures right now on corn it's about 8 cents December to July. That will change as we move through the crop year.
Hand shake or paper agreement? Needs to be clear Ben ji farms is not liable for grain condition. Renter inspects the bin then they are responsible for managing grain condition ie- monitoring temps, running fans.
Tom
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