Pasture Leasing Prices?

[midTN_Brangusman]

I recently leased a 50 acre farm near my home in middle TN, I pay $100 per acre annually. The farm is well fenced, very good lush pasture, plenty of shade, and a good year round water source. I was talking to some of the guys at the cattle sale and they said I was crazy, saying they pay 10 to 20 per acre a year. However, I have seen there farms and the hills are so steep I would be scared to drive a tractor on and they have many acres of woods. Did I do ok or am I paying way too much? Land is between 5 and 6,000 per acre at the moment in my area.

 

[J&D Cattle]

It's higher than what I pay here in MO but our stocking density may be very different. Sounds like you have rented a nice farm as well which would add some to the value. Bottom line if you can still pencil out a profit and are happy you've done good. Ground is awful hard to rent around here. Good luck!

 

[fenceman]

My area is no comparison to yours.
But 10 to 20 dollars is about average for grazing.
I have one lease, just under 500 acres. I pay 7 dollars for. But on a good year it'll only feed about 20 head.

 

[Brute 23]

I recently leased a 50 acre farm near my home in middle TN, I pay $100 per acre annually. The farm is well fenced, very good lush pasture, plenty of shade, and a good year round water source. I was talking to some of the guys at the cattle sale and they said I was crazy, saying they pay 10 to 20 per acre a year. However, I have seen there farms and the hills are so steep I would be scared to drive a tractor on and they have many acres of woods. Did I do ok or am I paying way too much? Land is between 5 and 6,000 per acre at the moment in my area.

Why are you asking other people? You tell us.... Are you making money? :???: That's all that matters. The proof is in the pudding.

For me... I would have to be able to run at least 1 cow/calf per acre or there would need to be another source of revenue from the property like hay or hunting. Every operation is different so there is not one blanket answer.

Doing what every one else is doing it a good way to go broke IMO. :tiphat:

 

[highgrit]

I've never heard of paying $100. per acre for cattle. But if it works out for you that's all that matters.

 

[Toad]

I have never payed $100 per acre for land but I would pay that if I had pasture good enough to do one pair per acre. Most of what I have now I figure one pair per 2 acres and I pay up to $50 per acre. Good land is hard to find and you don't make any money sitting on the sidelines.

 

[midTN_Brangusman]

Thanks everyone for the comments, I usually run a pair per 1.5 acres in my area. When its all said and done I am making a profit so I guess I am doing ok. It was either that or sell some cattle. Good pasture for rent is very scarce in my area.

 

[shaz]

You're right about recent land values but no more than 20/acre rent in your area.

 

[Jake]

There are people who are paying $60 an acre for 5 month grazing around here and that is just pretty average going rates. Some pay higher. It's not sustainable when cattle prices tank again but when an AUM takes $16000 to buy leasing at those values isn't so bad.

 

[midTN_Brangusman]

Thanks everyone for the feed back!

 

[littletom]

I don't lease but I hear in my area. 40-60 bushhog once keep fences up and carry insurance is what is going on for pasture. Crop ground 150-250 tobacco is 250-450. Crop ground 2500-3500 pasture 1500+ sale prices

 

[littletom]

And if across the road that would add a lot of value to me

 

[tnwalkingred]

I live in middle TN as well and pay $40 an acre for 100 acres across the road. It's not great but it's close to home and with rotation I can run 30-40 mama cows. If the land was really prime and close to home I would pay $100 an acre but if would have to be really good.

 

[John SD]

$30 AUM here.

 

[Jake]

I don't lease but I hear in my area. 40-60 bushhog once keep fences up and carry insurance is what is going on for pasture. Crop ground 150-250 tobacco is 250-450. Crop ground 2500-3500 pasture 1500+ sale prices

Seems like I need to move to your area. Incredibly cheaper land prices than around here for the same cash rent revenue.

 

[ChrisB]

$30 AUM here.

That's about average for my area too from what I've heard. So if you can run 30 cows (bases on your 1.5 ac/hd) for 6 months(?), that would be $5400/year. So for pasture I think you are paying a little less than going rate "here".

 

[John SD]

$30 AUM here.

That's about average for my area too from what I've heard. So if you can run 30 cows (bases on your 1.5 ac/hd) for 6 months(?), that would be $5400/year. So for pasture I think you are paying a little less than going rate "here".

For this area, you're off a decimal point ;-) "Here", I would figure 15 acres/hd for 6 months grazing, and a total of 25-30 acres to support one animal unit year round. I currently take in 65 head grazing on 800 acres for the season.

This year is exceptional, could maybe run 100 pairs this year, but in drought years the pasture would likely run out on 65 hd before 6 months. Neighbor kinda picks that number so he can run an odd number of 3 bulls with each group of cattle he puts out to rented pastures. Neighbor also brings only cows with heifer calves at side, so he doesn't have to mess with the herd at my place or arrange for extra help on sale day. He usually weans all the heifers and sells the heifers that don't make the cut for keepers after the first of the year.

Pairs go in June 1, possibly a week earlier. The calves are taken off after November 1. Most years the cows stay until late December unless weather decides otherwise. Water is no longer an issue with pipeline water.

Not much of a trail getting to my pasture which is 3 miles off the highway. I tell the guy to use his own judgement on weather and grass and take the cows home when he thinks it is no longer worth it. In typical years that is just before or after Christmas.

 

[ChrisB]

John,

How old are the calves when they arrive? And if you don't mind my asking, what responsibilities do you have as far as maintaining fences, putting out mineral, etc? Also is the pasture crossfenced and pairs are rotated or is it one big pasture?

Thanks,
Chris

 

[John SD]

John,

How old are the calves when they arrive? And if you don't mind my asking, what responsibilities do you have as far as maintaining fences, putting out mineral, etc? Also is the pasture crossfenced and pairs are rotated or is it one big pasture?

Thanks,
Chris

The calves can be anywhere from 3 months to 2 weeks when they arrive. As I mentioned the cows brought to my place almost all have heifer calves at side, but there could be a few late born calves of either sex in the mix, since they won't be sold with the majority on sale day anyway.

Neighbor maintains fence with materials I provide, supplies his own salt/mineral and feeders and checks on the cattle regularly. Major fence construction/reconstruction I would hire out. I pay the electric bill which is now $85/month year round availabilty charge for 3 meters :shock: And I'm actually only using one at the moment

The largest pasture is 480 acres (3/4 of a section, minus the NE 1/4 which belongs to someone else) 12' tire tank in the middle and also a dam and a dugout.

160 acre pasture adjacent to and can be used in conjunction with the 480 is 1/4 mile wide and a mile long ( 4- 40's E-W) One range well at the far west end of this pasture hasn't been used for a few years. Needs a new tank and likely all external wiring now needs replaced. I was going to turn on the pump to give it some exercise but chickened out when I saw the weathered wiring :lol2:

As far as I know the pump is still good and the well is excellent. I will buy a new tank and whatever it takes to make the wiring safe. This well is a submersible pump on a float switch pumps directly into the tank. No pressure system. Neighbor just hasn't had time to help with it. Another 12' tire tank 3/4 mile east from the pipeline system is the only current water source on this 160.

Another 160 acres consisting of similarly stretched out 40s across the road. Neighbor turned in this pasture first this year. Has 2 -12' tire tanks located a half mile apart. Also has a dam on the far east end of the pasture and a dugout not far from the first tank.

The balance of the rest of the pasture is about 40 acres around the farm stead which is reserved for late fall winter. Sometimes we hay this, sometimes we don't. Just cut around the buildings this year for fire protection/deep snow access. The barn and corral is the only winter protection on this place.

I also leave some hay that can be fed if cattle get stranded in bad weather. I don't charge for any hay fed. Since the neighbor with the cows lives 10 miles away and I'm 17 miles away, the neighbor who lives a mile away and helps me put up the hay usually puts out hay for the cattle if necessary with his fuel in my tractor.