(b) Annual Ownership and Operating Costs
The fixed cost of owning a storage structure should include a value for such items as depreciation, interest, repairs, taxes and insurance. Variable or operating costs should include a value for the cost of labor and equipment operation.
In addition to the foregoing some dollar value should be given to the losses incurred in the use of each type of silo. There are basically two types of losses which may occur to feed in storage: (a) loss of dry matter; and (b) loss or deterioration of feed quality.