ISU Extension Ag Decision Maker C2-24
Computing Grain Storage & Dryer Rental Rates
Calculate annual ownership costs and baseline per-bushel rental rates for grain storage bins and continuous/batch dryer systems based on the DIRTI framework (Depreciation, Interest, Repairs, Taxes, and Insurance).
1. Capacity & Initial Investment System Capital Inputs
Parameter
Grain Bin
Bin Dryer
Annual Volume
Capacity or Bu Dried
bu capacity
bu/yr dried
Original Cost ($)
$
$
Useful Life (Years)
2. Ownership Cost Rates (% of Investment) DIRTI Parameters
Interest / ROI Rate
Charged on avg value (50%)
%
%
Repairs (% of Cost)
%
%
Property Taxes (% of Cost)
%
%
Insurance (% of Cost)
%
%
Operating Assumptions Notice:
This model calculates baseline capital ownership (DIRTI) costs. Variable operating costs—including electricity, drying fuel (LP/Natural Gas), labor, and grain shrink/loss—are assumed to be paid directly by the renter unless otherwise negotiated.
Rental Rate Benchmark
Grain Storage Rent
$0.184 / bu
$5,525.00 / year
Grain Dryer Rent
$0.044 / bu
$2,875.00 / year
Combined System Total:
$8,400.00 / year
Itemized Ownership Costs DIRTI Breakdown
Category
Grain Bin
Bin Dryer
Depreciation
4.0% / 8.33%
$2,600.00
$1,562.50
Interest / ROI
Avg Value (50%)
$1,625.00
$468.75
Repairs
$650.00
$750.00
Property Taxes
$325.00
$0.00
Insurance
$325.00
$93.75
Total Costs / Year
$5,525.00
$2,875.00
Rate / Bushel
$0.184 / bu
$0.044 / bu