Pasture and hay field leases. What works best for you?

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arkie1

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As we grow our operation it is becoming painfully evident that buying land and trying to get the cows to pay for it is not going to happen. I've been around enough to figure out that the number of ways you can lease land are endless. Some folks want cash. Some just want their property taxes covered. I've know a few folks that leased land just for upkeep of the property. Not asking what kind of cash you pay per acre since that's gonna vary from state to state. Just curious what yall have worked out and what works best for you.
 
I lease land by per acre payment... Lease whole farms for keeping taxes paid.. Have other places that the folks live far away and want the place kept up and they don't charge me a dime. The biggest thing I can tell you is whatever way you choose make it legal and have a contract that's appropriate for your state.
 
I agree on the contract Sky. I've got a place I run cattle on now and the gentleman who owns it seems to be trying to give me a leg up and simply expects the fences to be kept up and the place to be hogged. I trust this guy (I'm generally very untrusting of people) but even still I insisted we work up a contract. If something were to happen to him you never know what the kids will want to do with the place.
 
I have cattle on places owned by five different people, not counting me. I pay rent on one of them, pay the taxes on another, and the rest are happy to have the cattle there to keep their ag exemption (with the ag exemption their taxes are only about 10% of what they'd be otherwise).
 
arkie1":1y0c8mqx said:
I agree on the contract Sky. I've got a place I run cattle on now and the gentleman who owns it seems to be trying to give me a leg up and simply expects the fences to be kept up and the place to be hogged. I trust this guy (I'm generally very untrusting of people) but even still I insisted we work up a contract. If something were to happen to him you never know what the kids will want to do with the place.

Yea, When someone closes there eyes for good the family can get a lil money hungry.
 
So how long of a lease do you like to have before your willing to put a lot of money into a property? Things like fertilizer, spraying, seeding.
 
arkie1":417ohb4t said:
So how long of a lease do you like to have before your willing to put a lot of money into a property? Things like fertilizer, spraying, seeding.

All my leases are 5 year leases and I start from day 1 but watch my $ that I sink into it and pencil my input vs what will I be getting out of it. I also try to take care of it like it was mine so the owners see that and will renew the lease.
 
I think that's the best way to look at it. Just treat it like you'd treat yours. The penciling what I'll put into vs what I'll get out of it is what I have yet to master.
 
arkie1":3e0amb2t said:
I think that's the best way to look at it. Just treat it like you'd treat yours. The penciling what I'll put into vs what I'll get out of it is what I have yet to master.

:lol2:
 
Rafter S":1f0e34s1 said:
I have cattle on places owned by five different people, not counting me. I pay rent on one of them, pay the taxes on another, and the rest are happy to have the cattle there to keep their ag exemption (with the ag exemption their taxes are only about 10% of what they'd be otherwise).

Rafter I'm going to have to check this out. If it is the same across all states I'll have to remember that as an added bonus to having my cattle on their place.
 
Anyone do herd/calf percentages? I'm up working on my property once a week, and trying to figure out whether to hire someone local to watch my cows vs partner with someone local on a shared herd.
 
I lease by the acre. I have no problem leasing some grass on a handshake. I tend to be very trusting of people. I never require a deposit to build a fence. Do it all up front with my money.
I've found this will open a lot of doors. As far as obtaining land to lease, it's all about reputation. Take care of the land, and do what you say. Don't be out running the pasture every day. People don't like that.
As far as land improvement. I prefer to foot the bill. Especially on fence. And use it to lock in the lease. I built a quarter mile of fence last year. After the land owner sold a few acres to his nephew. I was able to to get a agreement for 10 years on 500 acres. If I'm ran off before the 10 is up I get paid for the fence.
 
arkie1":2hpvt3nn said:
As we grow our operation it is becoming painfully evident that buying land and trying to get the cows to pay for it is not going to happen. I've been around enough to figure out that the number of ways you can lease land are endless. Some folks want cash. Some just want their property taxes covered. I've know a few folks that leased land just for upkeep of the property. Not asking what kind of cash you pay per acre since that's gonna vary from state to state. Just curious what yall have worked out and what works best for you.
One of the reasons I sold all my hay equipment was leased fields lost three in one year two died kids sold off the place. These were all close to home and I could tractor to every one of them. There were more to lease they would have required trailering equipment, I had sold down my herd and it just didn't pencil out. Fertilize cost had skyrocketed along with fuel I figured I had 46 dollars a roll in hay and I could buy quality hay all day long for 50 bucks 30 for filler.
 
Caustic Burno":1udkna1a said:
arkie1":1udkna1a said:
As we grow our operation it is becoming painfully evident that buying land and trying to get the cows to pay for it is not going to happen. I've been around enough to figure out that the number of ways you can lease land are endless. Some folks want cash. Some just want their property taxes covered. I've know a few folks that leased land just for upkeep of the property. Not asking what kind of cash you pay per acre since that's gonna vary from state to state. Just curious what yall have worked out and what works best for you.
One of the reasons I sold all my hay equipment was leased fields lost three in one year two died kids sold off the place. These were all close to home and I could tractor to every one of them. There were more to lease they would have required trailering equipment, I had sold down my herd and it just didn't pencil out. Fertilize cost had skyrocketed along with fuel I figured I had 46 dollars a roll in hay and I could buy quality hay all day long for 50 bucks 30 for filler.


When we started this venture me and my brother agreed that we'd have to be very mobile in order to make it work. The big patches of land around here are either family land that have another generation coming up or have been sold and are being busted up for people's "funny farms" and houses. We do some custom hay and have it where we can do most any repair in the field. It's been on my mind to try and find a small single screw truck to trailer equipment, haul hay and to put a flat bed on it with the compressor, welder and tool boxes. Why wear out your pickup when one can be bought reasonably cheap and it's only job is to pull?
 

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