Near-north Ontario, French River | Visit your local commercial elevator and get a copy of the storage rates, that's your starting point. From there add in a cushion for the added hassle of being an "organic" storage site, surely there must be some paperwork involved. From there I'd be tempted, although I doubt you would be able to convince your customer, to added 30-40% to those rates, just because you are providing a specialized storage facility, on a short term basis. If they offer you a longer term deal, say 10 yrs or even 5 you then have wiggle room to bring your rates down if you so wish. One thing I would be very careful about is spelling out in your contract who is responsible for grain quality, and what is and isn't your responsibility. Ex.. if your roof leaks and ruins some high priced beans you might burn, but if you catch something going bad and they don't ship out to help you out.. who burns???Be sure to be properly insured etc.. all that factors into your rates. The value of the stored crop is really irrelevant, as you are not marketing the crop you have no real interest in it, you are only providing a facility and service. |
What to charge for storing crop?
