Question about leasing land

[Brandi2005]

Hi All. I just had a quick question about leasing land. My fiancee and I live in Lubbock Texas and have been seriosuly thinking about getting into the ranching buisness. We went to different ag loan places including FSA and it almost seemed impossible! They said things like well you have to have 3 years experience of managing the buisness or things like 25% down then we will think about getting you a loan! They were all nice but it was just kinda a downer, ya know! Well my dad has been a farmer for well forever but I never really had anything to do with the paperwork or anthing. I would help out here and there but nothing huge. His step-dad is a rancher but he(my fiancee) never managed his land-just worked on it. So basically what we have decided is that we need to lease land first. Does anyone have an opinion on how leasing is better/worse than owning or any other comments? thanks! Brandi
Also- we have been looking for land to lease around here but there is pretty much nothing! I know this isn't a huge cattle area but you have to start somewhere-right?

 

[Beef11]

When looking at your operation on paper you should seperate money made off of land from money made off of cattle. In my area you can't get a decent return on land purchased for grazing. Therefore leasing is a better option from that standpoint. Bankers want you to have land though. I would saying leasing or big money are about the only 2 ways into it initially.

 

[la4angus]

So basically what we have decided is that we need to lease land first. Does anyone have an opinion on how leasing is better/worse than owning or any other comments? thanks! Brandi

If you do get enough land leased, you will still have to have money to buy enough cattle before you can get into the ranching business.

 

[Caustic Burno]

So basically what we have decided is that we need to lease land first. Does anyone have an opinion on how leasing is better/worse than owning or any other comments? thanks! Brandi

If you do get enough land leased, you will still have to have money to buy enough cattle before you can get into the ranching business.

First leasing land in Texas in the worst drought in a 100 years and no end in sight. Sounds like you are fixin to loose your pants, if this drought doesn't break soon bottom will fall out of the market with every one dumping cattle.

 

[Brandi2005]

thank you beef and la4angus and burno. we are trying to save money for the cattle so we don't have to take out another loan for the cattle. I thought you could take out one big loan for it all(cattle, equiptment, land ect.) but I was wrong! Well anyway, thanks for the help! It really does help to get some info. from you guys that know how most of it works!

 

[norriscathy]

Get a SIGNED lease for at least 5 years. Every time I've leased land there have been problems. One time I cleaned up a couple of hundred acres, put up a new perimeter fence and built a corral. The next year the owner fused at me , told me I caused his property taxes to double and then trippled my rent! Every time, without fail! Clean a place up, build fences and the landlord wants it back or deceides to sell it. Get you lease in writing and the file it at the County Courthouse.

 

[Brandi2005]

norriscathy-thanks for that advice! I did not even think about that!

 

[Running Arrow Bill]

Get a SIGNED lease for at least 5 years. Every time I've leased land there have been problems. One time I cleaned up a couple of hundred acres, put up a new perimeter fence and built a corral. The next year the owner fused at me , told me I caused his property taxes to double and then trippled my rent! Every time, without fail! Clean a place up, build fences and the landlord wants it back or deceides to sell it. Get you lease in writing and the file it at the County Courthouse.

Couldn't agree more! Land owners that lease land probably can't be trusted without a legal document. Leasing land that won't keep livestock in, requiring you to make improvements at your expense, is a BIG gamble, even with a signed, filed legal lease document. Owner's plans change, owners die, relatives take over and liquidate real estate to get their share of the "cash pie".

 

[Texas PaPaw]

Brandi

There is a great book about the business side of cattle. "Knowledge Rich Ranching" by Allan Nation. It discusses land ownership vs leasing, finances, the cattle price cycle and many other issues. I highly recommend this book for cattle people, both experienced and inexperienced. You can order it from the attached web site. There are a number of other excellent cattle books available at this site.

http://stockmangrassfarmer.net/

Anytime you're investing your hard earned money, it's best to do plenty of that darned homework.

Good luck & best wishes
Brock

 

[Brandi2005]

Brandi

There is a great book about the business side of cattle. "Knowledge Rich Ranching" by Allan Nation. It discusses land ownership vs leasing, finances, the cattle price cycle and many other issues. I highly recommend this book for cattle people, both experienced and inexperienced. You can order it from the attached web site. There are a number of other excellent cattle books available at this site.

http://stockmangrassfarmer.net/

Anytime you're investing your hard earned money, it's best to do plenty of that darned homework.

Good luck & best wishes
Brock

Brock--
Thank you for the advice. I will definitely read that book!
Brandi

 

[msscamp]

Brock, thank you for posting that link!

 

[Dave]

Brandi,

There is another great book available at the Stockman Grassfarmer titled Risk Free Ranching. It deals a lot with leasing pasture.

Dave

 

[csutton]

Here's some info on the legals of renting pasture. http://www.agr.state.tx.us/producer_info/hay_grazing/com_hayhotline.htm scroll down and click land lease information. Its a pdf file so adobe is required.


csutton

 

[Brandi2005]

Dave and csutton-- thank you both very much. i have been reading up on leasing land and have learned alot just in these few days from reading this forum. again--thank you to all who replied!

 

[Brandi2005]

one more question..... This place is growing so fast! Alot of the farms/ranches are being sold for 1 acre tracts for houses. I cannot find any grazing land for leasing around Lubbock, Texas. Does anyone know where you can find land for leasing on the web? thanks!

 

[csutton]

Well, if land up there is like land down here, theres not much open for leasing and the ones that are available, are usually word of mouth, I rarely see ads for land leases. Best thing to do is talk to folks around the area, like sale barns, feed stores, ect. I guess you could even go to the extreme and check courthouse records for owners info. (If it is legal to do so, not 100 % sure on that) Best of luck!!!


csutton

 

[Brandi2005]

Land for lease here is very hard to come across. I think I'm gonna check at the stock yards and feed stores. thank you for your help!

--brandi

 

[T-Bone]

Maybe run an ad in your local newspaper in the cattle section of the classified adds. Just a thought.

 

[Dave]

I keep my eyes open for land that looks vacant or that has nothing happening on it. I then go to the county assessors office look up the landowner and approach them about a lease.

 

[TheLazyM]

Brandi i owne and rent land. my humble opinion is that if you do find some land to lease its a good way to start out. in that its not a long term commetment. say 3-5 years you dont like it sell out your free and clear. but if you signed the papers on a 10-20 year loan and then decide this is'nt for you then well welcome to the thorn in the side. around here in alabama land rent around $35-$50 an acre a year. so its not all that bad but of corse get everything on paper. hand shake deals are no good once money has changed hands if you know what i mean.