renting pasture with no fence

[footballjdtractor]

I have the opportunity to rent some pasture. The only problem is that it needs a lot of fence work. The land owner does not have the money to make the necessary repairs. I was thinking about offering a long term rent contract at a price that I could afford to rebuild what is needed. The land owner is close to having to sell the place or risk losing it. If I would pay them some rent it would probably be enough to be able to make their payments. What are you all's thought on this deal. Should I just walk away? I have been looking for pasture to rent for awhile and this is a good location.The landowner really doesn't want to have to sell the place but may have no other option do to losing their job.

 

[TexasBred]

I'd make sure I covered my a$$ every possible way in a good written lease and have no idea how that would hold up in court if it goes to foreclosure. Anybody could end up owning it and you'd be out in the cold.

 

[mtncows]

I don't know how much land you are looking at but can you use electric fence polywire which can be rolleds up and taken with you should you have to leave? If you could get a lease long enough to justify repairs and get it in writing then you would be okay.I deciced a long time ago to stop building fences for some one else to use.

 

[jkwilson]

Heck with rent, offer to buy it. Cash is a mighty tempting thing to those who are critically short of it.

If you do the fence work and he loses it or sells it, you may be out the time and money.

 

[hayray]

I get a 5 year lease and a clause in the lease that if the property is sold or contract is broken before that time that my fence cost come out of the sale. But as mentioned, don't know how any of that would be handled in a foreclosure. See if by you grazing it does the tax bracket change to agriculture from a higher tax bracket, that often saves landowners a ton of money and gives you better barganing power for leases. What would you be paying per acre, that would be important to know so many of us could give you advice on wheather it is worth it or not?

 

[LauraleesFarm]

hayray makes some very good points.

I second the electric fence idea too. Solar electric and some T posts can be installed really quick with little investment. And you can take it with you when you leave.

 

[novatech]

Laws are different from state to state. Typically a fence becomes real property as it is attached to the property. You may contract installing the fence at a given price. The owner cannot afford to pay you thus you have a lien on the property. (Remember the owner may get a new job and no longer need you. You have increased the value of the property. Even after five years he could get more for the lease due to your efforts.) If the property is sold, released, or foreclosed on then the lien is still attached (Maybe). I calculate a fence as a thirty year investment. I cannot seen how you could justify the expense over just a five year lease.
An electric fence is considered temporary thus is not real property and not near the outlay of cash. The pay out is much shorter and much less risk. If you never need it again it is at least re saleable.
As with any business deal have a contract and more importantly a sharp pencil before you sign the contract.

 

[tncattle]

I currently have a 28 acre pasture that I took with the knowledge I might lose it after a yr. T-posts, Solar charger and some hot wire did the trick and I can take it with me if I have to leave.

 

[Running Arrow Bill]

We lease out one of our properties on yearly basis for a token amount. We also pay the tenant for his labor and materials to repair, install, modify any of the fences. In return, the property is improved, watched over, and we can keep our Ag Exemption when his cattle ae on it which saves us several thousands of dollars a year in taxes. The guy is very reliable and quality conscious with the property. We also pay him a stipend for watching over and keeping frequent contact with us since we are only able to check on the place about 2 or 3 times a year.

Works for us...

 

[bverellen]

Get a good contract in writing, preferably notorized, stating within that you retain ownership of all temporary electric fencing.

Install Hi-Tensile wire, electrify it. Actually cheaper thatn installing barbed wire, faster, easier and stronger. Roll it back up on a spinning jenny and pull the composite posts back up if you move on.

That and buck will get ya a cup of coffee at the local shop.

Best of Luck.....



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[footballjdtractor]

Pasture rent in this area is around $35/acre. this is for fenced property that is ready to turn cattle out on. I though that if I offered $25/acre and provided some fencing this might not be too bad. I could get by with some electric fence but the property has some highway frontage that needs to be good tight fence also I 'm going to be using this place for backgrounding calves not for cows. I view this situation the same as putting down fertilize on farm ground, it is an input cost. check my math, if 70 acres of good fenced pasture would cost $35 per acre to rent that's $2450. If I could rent this 70 acres for $25 per acre that's $1750. I could build $700 worth of fence per year and be even, not counting my labor. Thanks for the replies I always get a bunch a great ideas from these boards.

 

[novatech]

Roughly that is 7200 feet of fence at about 1800 feet per side. At $1.00 per foot, material cost, that looks like about 10 years at $700 per year. The value of the fence is $2.00 per foot. With a five year lease you loose $3500. The owner increases the value by $14,000 less the depreciation of 5 years. With a net increase of $14,000, cost for him to have the fence built, and depreciated for 30 years, the owner gains $10,500. Your rent for 5 years is $8,500 plus the $10,500 gain in value is $19,000. That comes to a little over $54.00 per acre.
You need to gain back $7,200 in profit over and above other expenses in a period of 5 years to break even on the fence not counting your labor. It is hard enough to make a profit with out adding these types of charitable expenses.
There are a lot of asumptions and grabed out of the air figures here but just making a point.

 

[TexasBred]

Roughly that is 7200 feet of fence at about 1800 feet per side. At $1.00 per foot, material cost, that looks like about 10 years at $700 per year. The value of the fence is $2.00 per foot. With a five year lease you loose $3500. The owner increases the value by $14,000 less the depreciation of 5 years. With a net increase of $14,000, cost for him to have the fence built, and depreciated for 30 years, the owner gains $10,500. Your rent for 5 years is $8,500 plus the $10,500 gain in value is $19,000. That comes to a little over $54.00 per acre.
You need to gain back $7,200 in profit over and above other expenses in a period of 5 years to break even on the fence not counting your labor. It is hard enough to make a profit with out adding these types of charitable expenses.
There are a lot of asumptions and grabed out of the air figures here but just making a point.

And you still stand the chance of donating it to the new owner if it goes to foreclosure.

 

[hayray]

I rent all my property and none of it had usable fence. On my contract the fence is mine and goes with me. I can put it up for way less then a dollar a foot but I am running mommas and not backgrounding calves. I have a well over a couple hundred acres fenced off with 2 strand high tensile and 3 strand near roads and typically run real strong fence energizers. Just fenced off 128 acres this spring for $2700. Hads lots of trees some existing t-post and I also don't put post at set distances, I stretch the fence first then put post were I need them, saves a ton of money.

 

[hayray]

I currently have a 28 acre pasture that I took with the knowledge I might lose it after a yr. T-posts, Solar charger and some hot wire did the trick and I can take it with me if I have to leave.

What solar charger are you running and how much charge is it throwing on how many strands? I have a 21 acre piece that I am getting tired of running out and changing the batteries on all the time, would like to get a solar if I know they would work. I have a Gallagher S-17 that runs a paddock at my farm but I don't think that would run the 21 acres.

 

[Fly-guy]

I tried a 3 mile ZAREBA on less than a quarter of a mile of fence and ended up taking it back. One of my neighbors talked me into a SP10B 25 mile solar charger and I've been real happy with it. I would recommend the SP10B for sure.

 

[mtncows]

I currently have a 28 acre pasture that I took with the knowledge I might lose it after a yr. T-posts, Solar charger and some hot wire did the trick and I can take it with me if I have to leave.

What solar charger are you running and how much charge is it throwing on how many strands? I have a 21 acre piece that I am getting tired of running out and changing the batteries on all the time, would like to get a solar if I know they would work. I have a Gallagher S-17 that runs a paddock at my farm but I don't think that would run the 21 acres.

I would use a Par-Mak 12V solar with good grounds. Grounding and clear fence lines are the key.