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A Purdue University survey reveals what other Indiana growers pay to rent grain storage on the farm.

Tom J. Bechman, Editor, Indiana Prairie Farmer

August 15, 2020

1 Min Read
grain storage bins
BINS FOR RENT: Here’s what other farmers in Indiana typically pay to rent unused storage space for grain.Tom J. Bechman

You have a good corn crop coming, and you don‘t have enough storage space for every bushel. You also don’t expect prices at harvest to be very attractive, and you would like to store as much of your crop as you possibly can. There happens to be a couple of empty bins within a few miles because a farmer retired and rents out the farm, but not the bins. Would he rent them to you? If so, what would be a fair rent?

Craig Dobbins, a Purdue University Extension ag economist, monitors rent that Hoosiers pay for grain bins as part of Purdue’s annual farmland value survey.

Dobbins asked respondents to provide rental rates for three possible ways people rent bins that other farmers or landowners are no longer using. Sometimes, they simply rent the bins themselves. Often, the person renting the bin may provide his own auger to fill the bins. And he may pay for electricity to run fans or unloading equipment.

Other times, someone rents unused bins, and the bin owner covers the electricity cost.

In some cases, especially if a farmer retires, the entire grain facility may be available. If a person rents a grain facility with a dryer, leg and bins, the price per bushel will be higher.

On-farm grain storage rental rates

Note in the table that the statewide average is fairly consistent across the state. Bins alone rent for about 14 cents per bushel, bins with electricity rent for about 20 cents per bushel, and an entire grain handling facility rents for 26 cents per bushel.

Find the report at ag.purdue.edu.

About the Author(s)

Tom J. Bechman

Editor, Indiana Prairie Farmer, Farm Progress

Tom J. Bechman is editor of Indiana Prairie Farmer. He joined Farm Progress in 1981 as a field editor, first writing stories to help farmers adjust to a difficult harvest after a tough weather year. His goal today is the same — writing stories that help farmers adjust to a changing environment in a profitable manner.

Bechman knows about Indiana agriculture because he grew up on a small dairy farm and worked with young farmers as a vocational agriculture teacher and FFA advisor before joining Farm Progress. He works closely with Purdue University specialists, Indiana Farm Bureau and commodity groups to cover cutting-edge issues affecting farmers. He specializes in writing crop stories with a focus on obtaining the highest and most economical yields possible.

Tom and his wife, Carla, have four children: Allison, Ashley, Daniel and Kayla, plus eight grandchildren. They raise produce for the food pantry and house 4-H animals for the grandkids on their small acreage near Franklin, Ind.

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