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Cattle Boards
Grasses, Pastures & Hay
renting pasture with no fence
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<blockquote data-quote="novatech" data-source="post: 770503" data-attributes="member: 5494"><p>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.</p><p>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.</p><p>There are a lot of asumptions and grabed out of the air figures here but just making a point.</p></blockquote><p></p>
[QUOTE="novatech, post: 770503, member: 5494"] 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. [/QUOTE]
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renting pasture with no fence
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