Pasture Rent

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circlew

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My parent's neighbors have 80 acres about 60 is clear cut the rest is pasture. It has a five strand barb wire fence around it and a pond. I'm trying to figure out how much rent to pay. He may tell me to just use it to help keep the grass down. But he may want rent for the place. What is a place like that worth rent wise? The clear cut is full of grass.
 

bigbull338

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around here youd be lucky to rent any kind of pasture for $20 to $25 an ac if you can find land for rent.
 
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circlew

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Everyone around here said 10 an acre. So that's what I offered him. Suppose to let me know something by next week.
 

Sir Loin

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circlew

For a year to year lease:
I would offer to pay the taxes on it each year and no more.
And agree to keep the fences up and to keep it mowed.

For a 5 or 10 year lease:
you could add $2 to $5 per acre above the taxes.
And agree to keep the fences up and to keep it mowed.
And agree to add lime and/or fertilizer as needed.

That is providing there is free water year round.

SL
 

Goodlife

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circlew":y552k8af said:
Everyone around here said 10 an acre. So that's what I offered him. Suppose to let me know something by next week.

Hope this isn't too dumb, but is that $10 per month per acre?
 

JSCATTLE

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Goodlife":v39pyn7n said:
circlew":v39pyn7n said:
Everyone around here said 10 an acre. So that's what I offered him. Suppose to let me know something by next week.

Hope this isn't too dumb, but is that $10 per month per acre?
Not sure what he offered but here it 10 to 12 dollars per acre per year .. plus keep it mowed and fences kept up ..
 
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circlew

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Goodlife - that's $10 an acre a year.

SL - That is gonna be close to the land taxes on the place. There is a pond on the place.

I've never understood why someone who rents a place wouldn't keep the fences up and the weeds mowed. Its costing the renter money.
 

Sir Loin

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Goodlife,


Now please don’t take this the wrong way, but you need to start calling it a “lease” not “rent”.
At my age I forget exactly why but it has something to do with tangible and intangible property and less then a year and a year or more. And it makes you sound more professional.

Re:
- That is gonna be close to the land taxes on the place.
‘Close”-------- I would prefer to pay all the taxes to him. That way it is not costing him anything to lease to you. And if the taxes go up, he will know his taxes will be paid.
It’s kind of a sales pitch thing but it does make them feel more comfortable with longer term leases.
I always write my leases as, I “pay the yearly taxes upon demand” with no amount specified, then add “plus $5 (or what ever) per acre per year“ to be paid at the beginning of each and every year. ( or monthly )

Re:
There is a pond on the place.
Good, but if there is a chance it will not last year round, you need to write in “should the pond fail to provide water year round he will provide you with another water source.

Hope this helps
SL
 

Goodlife

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No offense at all SirLoin. Makes sense. One leases land and pays rent as compensation.

At $10/ac or even $25/ac it would be hard to justify buying land around here. Pasture is averaging over $7000/ac. Sounds like the way to go. I believe the CRP program pays more than $10 per acre around here.
 
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circlew

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SL He wanted to do it on a per acre bases. And the pond has never went dry. And if it does and he won't work on water my parents back yard borders his place so I can get water from them.
 

Goodlife

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This thread has me thinking of the economics of leasing pasture. What are the issues around location distance? How close should it be to one's home place? I know it needs to be close enough to go to daily to monitor the herd. Do most of you rent long enough that the cattle stay on that leased place start to sell? Tansporting them there and then back home would seem to be stressful on the animals. So how do you use the leased pasture? What about shelter and geed storage. Most unused land around here is simply a field that used to have monocrops or was in CRP. Do you build temporary shelters. Anyone rented with no existing fence and built one?
 
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circlew

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Good life the place I'm trying to rent is 10 minutes from my house. My parents live next door, so I can store some hay there and use my dad's tractor to feed with. If I was gonna rent a place that didn't have a fence and I was gonna have to build the fence I would want at least a 10 year lease.
 

JSCATTLE

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My lease pastures are with in 30 miles of my home place .. I graze them during the summer and bring my cows home to hay in the winter..In the spring around march 15 I cut out pairs and move them to lease land . That way I can round up and sell calves per pasture . I worm before dropping them off. And worm again in December when I bring them home. Works good for me ..
 
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