Just got off the phone with a gentleman about renting his 160. Its mine if I want it. Its mostly cleared with a few trees around a couple ponds and a small draw. It has about 40 acres that is worked up right now and has previously had wheat and sudan planted there. Fences are all in good shape, pretty good bermuda with some love and native scattered throughout. Its a mile and a half from the house and sits right next to the other 160 I have leased. Probably carry around 22-25 cows. But the guy wants $25/acre but is willing to do a 3-4 year lease. Any thoughts??
Pasture Rent
- Thread starter LimiMan
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stocky
Well-known member
LimiMan, To me, 4,000 dollars is way too much money for a place to pasture 22-25 cows. The top rent here is up to 10 dollar per cow-calf pair per month in the months that they are grazing pasture. You can usually rent it cheaper than that by renting for a total lump sum instead of per cow per month. I have a neighbor who pays 1300 per year for a place that pastures 25 cows for 9 months. Another neighbor pays 5,000 dollars for a place that runs 60 cows 9-10 months. Both of these are in normal rain years. These are both farms with fescue pasture that stockpiles well into the winter
kscowboy
Well-known member
Way too much , I rent out one of my 30 acre pastures for 125 a month limited to 15 head , its nice pasture and I don't want it over grazed. What ae you paying for the other 160 ?
BC
Well-known member
At $25 per acre your cow costs for grass are going to be $160 per year. I try to keep pasture costs at $75 to $80 per head. You stil have fertilizr and weed control to consider.
sidney411
Well-known member
Sounds like you already have your mind made up. Location plays a big part in it too, though, and it does have the prime location! So, the owner will fertilize out of his money? That may not be such a bad deal then. The most we pay is $20 acre, but that is family and included use of barns, water, pens, and tractor/equipment, which we wouldn't be able to run our other land without. All I can say is pencil it out and figure out what he want's you to take care of and what he is going to take care of and see if it's worth it. It is only your choice!
mnmtranching
Well-known member
I can see a problem. I don't believe you should pay more for one piece then another similar. Cause the other guy is going to want as much for his then.
I rent pasture and crop land, My policy is to keep the rent the same for comparable land.
I rent pasture and crop land, My policy is to keep the rent the same for comparable land.
Thats not too bad for around here because we have to compete with the friggin hunters that live in the larger towns .They have the money and will split it several ways.I cant find any decent leases .It sucks for us that actually live out here.But I guess I cant fault the landowners for getting what they can.
OhioRiver
Well-known member
are there any shelters or barns on this property you rent out or just grass.
what would a person NEED to put on the rental property to help protect the cattle from weather at times
what would a person NEED to put on the rental property to help protect the cattle from weather at times
hurleyjd
Well-known member
To me you are getting a deal on the $900 per year lease. I do not know what land is selling for in your area. If it was $1000 an acre then the $25 dollar an acre land would only be generating a 2.5% rate. The owner will pay taxes out of that. You cannot buy the land without having about a 6 to 7% note. So to me if you cannot pay the $ per acre than you need to not rent it. I have a friend in Nebraska that rents his land for pasture. He gets $65 per acre. If I was the owner I would sell the land and put the money on a CD that would draw 4.5 to 5% per year without any hassle of leasing and keeping everything up. If he wants to rent and subsidize your operation then more power to him.LimiMan":9c5umqb3 said:
tytower
Well-known member
hurleyjd":n153ptwy said:
Only problem with this if you get a boom market you miss out !
Gotta factor in Capital Gain on the land you own
hurleyjd
Well-known member
You also could miss out on a bust instead of a boom also.tytower":2iczqttq said:
novatech
Well-known member
The land also will increase in value. Most investors lease out the land to get the ag. exempt status while the value of the land is increasing. Land around here has increased from $2000 per A to $15000 per A in just 5 yr..hurleyjd":393hmup6 said:
Lease prices have gone from $12.50 per A to $30.00 per A. If you can find it.
BC
Well-known member
roach007":1l99bh6g said:
He said he was from Oklahoma. Just like in Texas, when you get past I-35 the stocking rate really drops. Even in East Texas we have some places that need to have a cow to 6 to 8 acres.
This link is for MO, but at the bottom there are some intersting pros-cons that may be of interest
http://extension.missouri.edu/explorepd ... g00427.pdf
http://extension.missouri.edu/explorepd ... g00427.pdf
backhoeboogie
Well-known member
BC":6kswvm2m said:
I have land in East Texas (Harrison County). Lush green but the grass doesn't have near the strength that it does here. Yes I am on a very fertile flood plain here, but there are many fields in this area that are not on flood plains and they produce horse quality hay. This is west of I-35. Soil tests say to add N and that's it.
HerefordSire
Well-known member
You better grab it before it is too late. One more thing, instead of tying it up for four years, double the term to eight years for the same price. This is why:
Asset management funds are buying rural land to compensate for the dollar fallout and the steep rise in commodity prices. In other words, rates are header lower and there just are not that many places to put a billion or trillion doallrs that is limited on the supply side. Due to the increase in population and the tons of cash drawing 4% per year (or after adjusting for the dollar minus 4% per year), the price of land has no way to turn except upward.
Asset management funds are buying rural land to compensate for the dollar fallout and the steep rise in commodity prices. In other words, rates are header lower and there just are not that many places to put a billion or trillion doallrs that is limited on the supply side. Due to the increase in population and the tons of cash drawing 4% per year (or after adjusting for the dollar minus 4% per year), the price of land has no way to turn except upward.
