Dec 1, 2008 12:00 PM, By Lynn Grooms

Rental Rates

Facilities rent

Old: 10 to 15% of original investment

New: 12 to 16% of original investment cost, if built specifically to rent. If the new building already exists and is standing empty, the range could be lower.

Renter: Pays all utility costs incurred and minor building repair and equipment maintenance costs.

Owner: Pays real estate taxes, fire and wind insurance, building remodeling costs and replacement costs of barn cleaners, silo unloaders and livestock equipment.

Both: Carry their own farm liability insurance.

Machine shed rent

Old, small, low ceilings, small doors, dirt floor: $0.10 to $0.30/sq. ft./yr. Average: $0.20/sq. ft./yr.

New, larger, high ceilings, large doors, cement floor: $0.30 to $0.70/sq. ft./yr. Average: $0.45/sq. ft./yr.

Dairy facilities rent

Milking parlor, equipment, loafing shed, feed storage, manure handling and storage facilities, and replacement heifer housing: $75 to $200/cow unit/yr.

Older (40-cow barn): $75 to $125/cow unit/yr. or $6 to $11/cow unit/month. Average: $90/cow unit/yr. or $7.50/cow unit/month

Repair costs can be substantial with an old dairy facility. In most cases, the tenant is responsible for all repairs.

Modern (over 60-cow capacity): $120 to $200/cow unit/yr. or $10 to $15/cow unit/month. Average: $140/cow unit/yr. or $12/cow unit/month.

Modern facilities must have a lot of built-in labor-saving technology (liquid manure storage and forage conveyors, for example).

Hog facilities rent

Pasture farrowing hut: $3 to $18/hut/yr. Average: $9/hut/yr.

Farrowing house: $2.50 to $10.50/pig weaned or $5 to $35/crate/litter or $25 to $400/crate/yr. Average: $5.50/pig weaned or $110/crate/yr.

Nursery: $1 to $7.50/pig. Average: $3/pig.

Farrow-to-finish: Modern: $4 to $18/head sold; Average: $9/head sold.

Confinement finishing building: $10.50 to $35/space/yr. or $2 to $10.50/head sold or $0.05 to $0.08/pig/day. Average: $30/space/yr. or $7/head sold or $0.07/pig/day.

Open front finishing unit: $3.75 to $25/space/yr. or $2 to $8/head sold or $0.02 to $0.05/pig/day. Average: $12.34/space/yr. or $5/head sold or $0.04/pig/day.

Feeder cattle facilities rent

$1 to $9/head/month or $9 to $80/head finished or $0.07 to $0.30/head/day. Average: $4.50/head/month or $38/head finished or $0.15/head/day.

Grain storage rent

Old, smaller, high labor requirements,larger grain loss: $0.01 to $0.015/bu./month and $0.09 to $0.12/bu./yr. minimum.

New, larger, good elevator grain movement system, small grain loss: $0.015 to $0.03/bu./month and $0.12 to $0.20/bu./yr. minimum. Should have capability to cool grain in the fall and warm it in the spring. Should also keep grain in good condition. If facility has attached grain dryer for which owner supplies fuel, rent may be increased by $0.05 to $0.08/bu./period (usually one year). If operator supplies the fuel, additional rent will be $0.5 to $0.75/bu./period.

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