Renting pasture & cows

[rollinhills]

We have a neighbor that has 32 cows and a bull, about 150 ac of pasture. I can rent cows and ground for $3500.00 a year, manage them how I want, I get all the calves, I have to make sure he has same amount of cows and a bull, maintain the fence & mow once a year. I think in can come out on this deal, what's you all's thought's. thanks

 

[JMJ Farms]

Sounds like a no brainer to me. I'd call him before he offered that deal to someone else!

 

[Brute 23]

I think he is a really good business man. He is locking in a rate of return and the value of his herd with little risk.

There are 3 benefits to cattle in my mind.
1) the value of the cattle herd
2) maintaining or improving the land they are on
3) the revenue from them

With this deal you have lost 2 of the 3 and the only benefit will be the revenue left after rent. IF there is a little money to be made it will probably not be worth the hassle.

 

[Brute 23]

That deal would make me nervous. Not sure what his angle is.

 

[rollinhills]

I think he is a really good business man. He is locking in a rate of return and the value of his herd with little risk.

There are 3 benefits to cattle in my mind.
1) the value of the cattle herd
2) maintaining or improving the land they are on
3) the revenue from them

With this deal you have lost 2 of the 3 and the only benefit will be the revenue left after rent. IF there is a little money to be made it will probably not be worth the hassle.

I under stand what you are saying, I was thinking that I could put my cows on one of the pastures and increase my herd, the big thing its just across the road from my place. The pasture is under stocked as of now.

 

[callmefence]

Sounds like a no brainer to me. I'd call him before he offered that deal to someone else!

X2

 

[JMJ Farms]

I think he is a really good business man. He is locking in a rate of return and the value of his herd with little risk.

There are 3 benefits to cattle in my mind.
1) the value of the cattle herd
2) maintaining or improving the land they are on
3) the revenue from them

With this deal you have lost 2 of the 3 and the only benefit will be the revenue left after rent. IF there is a little money to be made it will probably not be worth the hassle.

I under stand what you are saying, I was thinking that I could put my cows on one of the pastures and increase my herd, the big thing its just across the road from my place. The pasture is under stocked as of now.

Another plus to me is there is a possibility that at some point in the future the current owner will offer to sell you the land or the cattle or both. Renting land is a good way to put yourself in a position to buy it someday.

 

[rollinhills]

That deal would make me nervous. Not sure what his angle is.

the land owner is a older man,not real sure other than not wanting to pay capital gain taxes if he sells the cattle. The farmer that has been doing this deal with him for last 20 yrs has got cancer and his sons are row crop farmers. I guess the sons think 4000 acs of crop is enough to keep them busy and I don't think they like fooling with cattle.

 

[rollinhills]

I think he is a really good business man. He is locking in a rate of return and the value of his herd with little risk.

There are 3 benefits to cattle in my mind.
1) the value of the cattle herd
2) maintaining or improving the land they are on
3) the revenue from them

With this deal you have lost 2 of the 3 and the only benefit will be the revenue left after rent. IF there is a little money to be made it will probably not be worth the hassle.

I under stand what you are saying, I was thinking that I could put my cows on one of the pastures and increase my herd, the big thing its just across the road from my place. The pasture is under stocked as of now.

Another plus to me is there is a possibility that at some point in the future the current owner will offer to sell you the land or the cattle or both. Renting land is a good way to put yourself in a position to buy it someday.

That's what I was thinking also but buying the land may not be a possibility he has city folk kids that just like to come out to farm and play around.

 

[5S Cattle]

I'd jump all over that

 

[callmefence]

That's still plenty cheap. You don't do it your gonna be looking cross the road watching somebody else get that deal.

 

[skyhightree1]

We have a neighbor that has 32 cows and a bull, about 150 ac of pasture. I can rent cows and ground for $3500.00 a year, manage them how I want, I get all the calves, I have to make sure he has same amount of cows and a bull, maintain the fence & mow once a year. I think in can come out on this deal, what's you all's thought's. thanks

My thought is why are you pointing questions about it and not saying that's what you leased? :???:

 

[farmerjan]

If the city folk kids want to come out and play around you could get a long term lease out of the deal if the current owner decides to sell out or passes away or something you would be most likely in line to buy the cows; and maybe the place if the kids don't want to keep it. Plus, you would be keeping it eligible for whatever break you get there in landuse taxes for them. If there are no restrictions to how many animals, or co-mingling of his with others, I can see no real good reason to turn it down. The proximity is important too, makes it fairly attractive. Are the fences in decent shape now where they wouldn't require alot of work to keep them in a maintainable condition? Do you like the cows overall? It could be a good way to keep some heifers if you like them since the calves are supposed to be yours. This is giving him a set amount to count on with none of the aggravation etc., but it also could work in your favor if the prices rebound, or if you get a 75% calf crop of bulls too. If you need the grazing or it could ease some expansion concerns , I think it sounds like a decent deal. If it was across from us we would have already handed him a check.... if you only sold 20 calves at $500. each, you would pay for it, a couple of times. One thing, insure the cows in case of any disaster, you would at least get a little back if something happened.

 

[Stocker Steve]

I think in can come out on this deal, what's you all's thought's. thanks

I don't know where your are going. So run the numbers:

One set of numbers for hard times.
One set of numbers for good times.
One set of numbers for the end game.

 

[Brute 23]

I think he is a really good business man. He is locking in a rate of return and the value of his herd with little risk.

There are 3 benefits to cattle in my mind.
1) the value of the cattle herd
2) maintaining or improving the land they are on
3) the revenue from them

With this deal you have lost 2 of the 3 and the only benefit will be the revenue left after rent. IF there is a little money to be made it will probably not be worth the hassle.

I under stand what you are saying, I was thinking that I could put my cows on one of the pastures and increase my herd, the big thing its just across the road from my place. The pasture is under stocked as of now.

Got ya. If that is the case then I would jump on it.

How many cows did the former farmer have on it?

 

[Supa Dexta]

Not sure his angle?? He has guarantees on the land, cattle and money and doesn't have to do anything except enforce it.

Better keep good records and find out how old those cows are starting out.

Take an Avg of 500 per cow a yr to maintain. Thats 16k plus bull cost. Say another grand a yr over 5 yrs and thats being generous.

17k a yr to maintain plus 3500 rent. - 21,500

30 live calves a yr with minimal death loss, keep 3 for replacements leaves 27 calves to sell. = You need 800 a yr per calf to break even.

 

[callmefence]

Not sure his angle?? He has guarantees on the land, cattle and money and doesn't have to do anything except enforce it.

Better keep good records and find out how old those cows are starting out.

Take an Avg of 500 per cow a yr to maintain. Thats 16k plus bull cost. Say another grand a yr over 5 yrs and thats being generous.

17k a yr to maintain plus 3500 rent. - 21,500

30 live calves a yr with minimal death loss, keep 3 for replacements leaves 27 calves to sell. = You need 800 a yr per calf to break even.

I ask with due respect. How in the world do you figure 500 a cow.?
If the place is understocked

 

[True Grit Farms]

http://extension.missouri.edu/aginfocus ... -cost.aspx
http://beefmagazine.com/cow-calf/what-s ... t-keep-cow

Here's a couple of samples of how much it cost to carry a cow. Somewhere between the two is the sweet spot. IMO

 

[Brute 23]

Not sure his angle?? He has guarantees on the land, cattle and money and doesn't have to do anything except enforce it.

Better keep good records and find out how old those cows are starting out.

Take an Avg of 500 per cow a yr to maintain. Thats 16k plus bull cost. Say another grand a yr over 5 yrs and thats being generous.

17k a yr to maintain plus 3500 rent. - 21,500

30 live calves a yr with minimal death loss, keep 3 for replacements leaves 27 calves to sell. = You need 800 a yr per calf to break even.

That was the same thing I was thinking at first until I read he could stock it with his cattle also. Even then that property needs to hold 20-30 of his own cattle. Not sure the stocking rate in that area but you are talking about a pair to 2-3ac.

Its not a smoking deal, but it is do able. Especially if it is right across from your house.

I still don't understand why the guy wants to keep his own cattle on the place. That doesn't make any sense. He is better off selling them and pocketing the money. I would push for him to sell his cattle and just lease me the land straight up. If the cattle are decent I would offer to purchase them and pay it out over 3 years or what ever if he wanted to break the income up.

 

[True Grit Farms]

How much can you lease land for in your area? Seems like the old boy is leasing the land and just throwing the cows in. You can't find fenced pasture here for less than $25.00 per acre.