Pasture Lease cost???

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For the ones who want to make a profit off the cow:
How much per cow can you you invest per cow in lease and make a profit ?
 
Pasture around here rents for $10 to $15 an acre per year. Being a small community everybody knows who you are or knows your kin. I hate to give up my secret, but most of the land owners here have moved off or there families have passed on and have left it to them. When I first started trying to rent a place, most of the best ground was taken. I was able to rent a few small places to get started, most were ran down and the owners just wanted to have them cleaned up. I would trade fence and building repairs for the rent. Once the owners saw that you will keep the place up, the rent is very negotiable. After a couple years I would approach some of the bigger land owners and ask them about renting. I always have had a good standing with the owners of the pastures I already had, and used them for references. I was able to rent a couple of places, out from under a rancher that is alot bigger than I am, or will probably ever be. One I pay no rent, 80 acres, I just keep up the place and cut firewood for the guys mother and dad. It helped that we went to grade school together.

When I say keep it up, I mean fences, gates, sheds, barns, grass, trees trimmed and the like.
 
It is equal to the taxes for us on what we rent out. About $20/acre on a 100 acres of which 50 is pasture. Usually it just covers the taxes on the pasture or hay land. It use to be $25 for the 50 but we worked this deal that gave him a longer lease.

edit for $20/acre
 
$2-3/per acre for the summer. You look after it like it was your own. Fence needs building, you build it with your own materials. $2-3/acre will cover the taxes and couple hundred dollars cash for the owner. Yes...taxes are that cheap here..and that's why I live here. :cowboy:
 
Aaron":33fpjl4x said:
$2-3/per acre for the summer. You look after it like it was your own. Fence needs building, you build it with your own materials. $2-3/acre will cover the taxes and couple hundred dollars cash for the owner. Yes...taxes are that cheap here..and that's why I live here. :cowboy:

What will the land run there? Here it would take 1 1/2 acre for a cow and calf.
 
alabama":hshhiawe said:
10-e-c-dirtfarmer":hshhiawe said:
$ 10.00 per year! My property tax is more than that!


One reason our property taxes are cheaper is we have a state income tax where TN does'nt. I also know some states don't have sales taxes on certain things that we do. I lived in AR all my life and worked for 15 years in TN. The ones I worked with could not understand why anyone would live over here and have to pay income taxes. Well if I owned what I do here, over in TN, my property taxes would be higher than what I pay in income taxes and property taxes combined in AR.
 
Wewild":1e9itg0l said:
Aaron":1e9itg0l said:
$2-3/per acre for the summer. You look after it like it was your own. Fence needs building, you build it with your own materials. $2-3/acre will cover the taxes and couple hundred dollars cash for the owner. Yes...taxes are that cheap here..and that's why I live here. :cowboy:

What will the land run there? Here it would take 1 1/2 acre for a cow and calf.

It's about the same here, maybe a little less.
 
I pay $15 to $35/acre for leased pasture, and I have invested in a lot of improvements to get the summer stocking rate over 1,000 pounds per acre.

There USED TO BE quite a bit of potential pasture around, but now there are many other options:
1) High rollers will buy partially wooded property for deer hunting and refuse to let cattle on. They were paying up to $2,000 per acre several years ago but the price has since dropped back to about $1,200
2) Traditonal tractor drivers will acquire the land to cut one crop of poor grass hay and weeds per year. Lots of queen ann's lace and wild parsnips and thistle...
3) Farmers with no soul plant hybrid popple trees for CRP program
 
upfrombottom":5an9gl6z said:
alabama":5an9gl6z said:
10-e-c-dirtfarmer":5an9gl6z said:
$ 10.00 per year! My property tax is more than that!


One reason our property taxes are cheaper is we have a state income tax where TN does'nt. I also know some states don't have sales taxes on certain things that we do. I lived in AR all my life and worked for 15 years in TN. The ones I worked with could not understand why anyone would live over here and have to pay income taxes. Well if I owned what I do here, over in TN, my property taxes would be higher than what I pay in income taxes and property taxes combined in AR.
Arkansas' taxes must be cheap, I 've really never thought of TN's taxes as being that high.
 
greatgerts,

In my experience, its best to go the informal route, talk to people you know who have land, or find out who owns "that place" you see on your way to town that has a lot of pasture but no cows and just talk to them, hopefully you are proud of your own place and would be willing to show it to them and explain what it is you intend to do. There is a great book on this exact topic called "No Risk Ranching: Custom grazing on leased land" by Greg Judy. Good luck!

P.S. Thanks for all of the posts! Glad to see the discussion has lasted this long! My neighbor and I settled on keeping the original price of $10 a cow per month in exchange for access to more land! A win-win situation, I get more pasture and he gets more money!
 

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