rate to lease hay meadow

[johndeerefarmer]

I am out of the hay business and would like to lease out one of my fields. It's 18A of coastal bermuda grass.

I would like some kind of agreement where the lessee pays for the herbicide, fertilizer and lime. All that I will be responsible for is maintaining the fence around it.

Around here improved pasture land rents for around $15-17 A but I don't think I want to rent it out that cheap.

Any suggestions? I am thinking of a set fee per bale. This would encourage the lessee to fertilize it more heavily.
We might could also do a 2/3 1/3 agreement. I get 1/3 and he supplies all inputs and labor
Thanks

 

[bigbull338]

your deal would not fly around here at all.if you want it fert and sprayed for weeds your better off doing those things yourself.then you could try to sell the hay standing for say $10 to $12 a bale.i dont know if you would have any takers.but who knows.

 

[ga.prime]

Bigbull, yours is a loser proposition. If I fertilize and spray for weeds, I want $20/bale with a minimum $100/acre and that's break even but at least it keeps the weeds down.

 

[bigbull338]

your right ga thats why i said what i said.i dont know of any1 that would give $100ac for standing hay.but i do know that would buy all of my hay for $100 to $125 a bale last year.because our hay is organic.as they run an all organic dairy.

 

[hillbilly beef man]

On a 2/3 1/3 split around here the land owner pays for the fertilizer and herbicide. I got a few fields that I pay for the fertilizer and lime. My payment to the landowners is to plow and disc their gardens and I keep all the hay. It would be cheaper for me to buy hay than to pay for the fertilize and only get 2/3 of the hay.

 

[johndeerefarmer]

Thanks for the responses. Keep 'em coming.

How would a 75-25 split be and the renter pays for all inputs?

 

[Brute 23]

I don't like the splits and all that. Its just messy.

Pick the dollar amount you want... lets say $1000... and just make it that amount for the ground annually. Leasee must provide a receipt for herbicide and fertilizer and give 24hr notice when it will be performed.

Of the top of my head it is worth at least $1000 a year IMO.

 

[johndeerefarmer]

Thanks.

I hate to quit doing my own hay but after 25 years its time to slow down and have some fun. Haymaking is nearly as bad as the dairy business (my grandpa and dad did that for 25 years) as when its time to cut hay you have to drop everything else and of course the cows got milked at 4AM and 4PM 7days weeks.

 

[Rajela]

If I was having to apply herbicide and fertilizer the split would be 100% mine. After you figure cost of Herbicides, Fertilizer and Harvesting there is any thing left.

 

[Son of Butch]

If I was having to apply herbicide and fertilizer the split would be 100% mine. After you figure cost of Herbicides, Fertilizer and Harvesting there is any thing left.

And you think he pays 100% of the property taxes and gets nothing is fair?

 

[ga.prime]

How would a 75-25 split be and the renter pays for all inputs?

If the field makes 4 rolls to the acre that's about $40-$50/acre it's costing the renter. Way higher than the $15-$17/acre you said was the norm for your location.

 

[Rajela]

If I was having to apply herbicide and fertilizer the split would be 100% mine. After you figure cost of Herbicides, Fertilizer and Harvesting there is any thing left.

And you think he pays 100% of the property taxes and gets nothing is fair?

I think he can apply herbicides, fertilizer, harvest, pay taxes and take all that huge profit for himself when he sales the hay... He owns the property and will still own the property after everything else is said and done. Like I said after the herbicide, fertilizer and harvesting there ain't any profit left.

 

[ga.prime]

If I was having to apply herbicide and fertilizer the split would be 100% mine. After you figure cost of Herbicides, Fertilizer and Harvesting there is any thing left.

Maybe, maybe not, depending on what you can buy or sell a roll for.. The cost of doing all that in my situation has in the past been in the neighborhood of $30 to $40/roll.

 

[Rajela]

If I was having to apply herbicide and fertilizer the split would be 100% mine. After you figure cost of Herbicides, Fertilizer and Harvesting there is any thing left.

Maybe, maybe not, depending on what you can buy or sell a roll for.. The cost of doing all that in my situation has in the past been in the neighborhood of $30 to $40/roll.

Same here ga.prime only money I really make on my hay is my pay for harvesting it. I do get the benefit of having an improved meadow without any weeds and a nice thick stand of grass. Just sold 206 4X5 rolls of first cut for $35.00 a roll had $3,000.00 worth of herbicide and fertilizer invested plus the property tax. With a cost of $20.00 per roll or 206 X $20.00= $4,120.00 for the harvesting there ain't much profit in owning grass. I made some from the harvesting since I do my own but I also have equipment payments, fuel cost, labor & repairs.

 

[johndeerefarmer]

Land here is selling for $5000-8000 per acre so I have a fortune tied up there as well as the property taxes. Also it is fenced so I have to maintain them as around here without a fence some nut in a 4x4 will run through your meadows and put ruts in it.
Here 4x5's are selling for $55-60 roll for good quality but not horse quality or dairy quality

 

[Rajela]

What does the harvesters charge per roll????

 

[johndeerefarmer]

$25 for 4x5's

 

[thommoos]

Most hay balers just cut roll and go, Its up to you the land owner to keep up the land. Around here you are dependent on them getting to you. I dump out a 2k on fertilizer this year in april , still waiting on the baler to make it my way. You might get lucky and get $10 a bale if you fertilize it. Around here its not so much quality but quantity. I have never seen a custom baler fertilize.

My neighbor is interested in quality, he chicken manures his fields at least 2 times a year. so far he has shrink-wrapped 800 4x5 bales, then baled another 400 5x5. he runs a calf operation. But his input in quality is what pays the returns. his feeders put on the lbs. lbs equal $$$$.

 

[Son of Butch]

Most hay balers just cut roll and go, Around here you are dependent on them getting to you.

Since you refuse or can't be bothered to list location, is it too much to ask for common sense/courtesy to at least mention the state or providence to which you are referring?

 

[Gunner]

My brother in law rents out an 80 acre coastal bermuda hay field for $25/acre annually. It is in the contract that the renter will fertilize and weed kill every year.
He has another 20 acre field that is irrigated with a side roll irrigation system. The irrigation system is his, the wells are his, the renter put in the pumps. My BIL pays 25% of the fertilizer and weed killer and gets 25% of the hay. The renter pays all other expenses, maintenance, electricity etc. Both my BIL and the 2 different renters all seem to be happy with the agreements. Both renters are in the hay business.