1 year pasture lease

[carla]

I am renting my neighbors property that joins mine. I will be renting for 1 year at a time with option for renewal. He feels that he will be selling it in the next year to 3 years time. If the property sells, I will be given a 2 month notice to pull my cattle off there. I will pay the rent on a month to month basis. My question is this: What kind of deal would you work out on fertilizer and lime? He is thinking that a certain percentaage would be refunded to me if the property sells. Anybody have any suggestions and/or experiences? I would appreciate your help. This property joins me, so it is too good of a deal to pass up. Thanks!!

 

[eric]

I think that any improvements that you make are up to you, and you shouldnt expect to get anything back, especially from a new owner. It would be nice if you did, but I sure wouldnt expect it! I would just consider it another expense of raising cattle, and hopefully the fertilizer/soil improvements will pay off in heavier cows. Now for fence improvements, I can see expecting some kind of monetary return.

Good luck, and dont lose the place over a few hundred dollars worth of fertilizer!! Sounds like you got pretty lucky getting the place right next to you. I would love a deal like that and would gladly pay a premium for that kind of convienence!

 

[carla]

I talked to him last night and he has agreed to to pay 75% of the lime on 80 of those acres that needs the lime to start out with. He will also rembuirse me 75% of the fertilizer if the property is sold within 6 months after being applied. Otherwise I will pay for all the fertilizer. Doesn't sound too bad, does it? This 140 acres is perfect for me. All I have to do is make a gate in our joining fence and let the cows in.

 

[dun]

Sounds fair to me.
If you follow human nature, what are your plans for the stock that you will expand with if he sells the land?

dun

I talked to him last night and he has agreed to to pay 75% of the lime on 80 of those acres that needs the lime to start out with. He will also rembuirse me 75% of the fertilizer if the property is sold within 6 months after being applied. Otherwise I will pay for all the fertilizer. Doesn't sound too bad, does it? This 140 acres is perfect for me. All I have to do is make a gate in our joining fence and let the cows in.

 

[texasmortgageman]

In your lease agreement try to put in an "option to buy" or a "right of first refusal". Your circumstances may change and you might lose the chance to buy it. Just a thought.

 

[Anonymous]

You might also try to fertilize half of the land this year and defer half until next year. Not only would this lower your initial inputs, it would lessen the amount you have at risk. Try to fertilize the BEST 70 acres this first year, and that way YOU will get the most value from your investment. Most landowners would understand your reasoning and be happy to go along with this plan.

 

[jw]

AND GET IT IN WRITING!!

 

[carla]

All ready have put first right to buy property in contract that we are working on. I would love to buy it, but I do not have the $45-$50,000 down that the bank wants. As far as the extra stock goes, I guess I will just have to take a chance.

 

[cherokeeruby]

What does land go for in your area of Missouri?

 

[dun]

Around here to nonidiots it sells for around 750-1500 an acre depending on what kind of pasture it is. Timber runs around 450-750, again thats to nonidiots. With older fencing and structures, you can till find farms for 1000-1250 an acre. That's for larger pieces. 10-20 acre pieces will run a little higher, about 50%. One of the things that people loose sight of is that even great quality pasture around here is still not all that great compared to areas that have actual soil covering the rocks.
People come in from other higher priced areas and pay several k per acre over it's real value for very marinal land and think they're getting a bargain. Those are the idiots. Not all of them are from CA, we had some folks come down from KC and thought the got a real bargain at only 3500 an acre of pretty useless land.

dun

What does land go for in your area of Missouri?

 

[la4angus]

Around here to nonidiots it sells for around 750-1500 an acre depending on what kind of pasture it is. Timber runs around 450-750, again thats to nonidiots. With older fencing and structures, you can till find farms for 1000-1250 an acre. That's for larger pieces. 10-20 acre pieces will run a little higher, about 50%. One of the things that people loose sight of is that even great quality pasture around here is still not all that great compared to areas that have actual soil covering the rocks.
People come in from other higher priced areas and pay several k per acre over it's real value for very marinal land and think they're getting a bargain. Those are the idiots. Not all of them are from CA, we had some folks come down from KC and thought the got a real bargain at only 3500 an acre of pretty useless land.

dun

They probaly moved from Ca. or NYC to KC before buying in the Ozarks

What does land go for in your area of Missouri?

 

[dun]

These particular idiots had been around KC for generations. Actaully they seem more backcountry hillybillyish then some of the inbred clans around here. The make Jed and Granny look sophisticated. I guess the Ozarks doesn't have an exclusive on backwards folks. But they had lots of money.

dun

They probaly moved from Ca. or NYC to KC before buying in the Ozarks

 

[eric]

Jeez....5 acre lots behind me are going for $275k, and as soon as one goes up for sale, it's snapped up in a few weeks! Out of 20 original lots the old man sold to a developer a few yrs ago, only 2 lots havent been built on! And most folks bought 2of the 5 acre lots(@$400k)! He's passed on and his daughter is sitting on the remaining 220 acres he had, across the street from me. Luckily her husband comes from a rodeo / cattle family and she swears she isnt going to sell anytime soon! So hopefully I be able to look at cows across the street for awhile longer, instead of the million dollar mansions! But the town is changing, as the new blood city council is the spending kind of folks! It seems extra money just burns a hole in their pocket and they have to spend it, either updating the city hall building, hiring new police force from neighboring city, hiring new "investment officer" to invest the city funds....they dont realize the extra money is around because previous council budgeted for major expenses instead of having bond elections. Heck, they doubled the building permit cost last yr, and even tried to make us get a permit in order to put up fences! Well, we're just gonna roll with it as long as we can, at least until the kids get out of school!

 

[D.R. Cattle]

Sounds like sprawl in my area. I bought 10 acres to build a house on a few years back for 4900/acre. People are paying 40,000/acre a little closer in and 20,000 next door to me. Time to move. North Florida/South Georgia/Alabama is sounding better all the time.