The availability of lease land...

[Anonymous]

The "business model" for my cow/calf operation involves substantial lease land. Several people I am involved with think GOOD leases are virtually impossible to obtain. I am talking about leases for 500+ units. Here in Texas, good land goes for $20-25 an acre. However, I think if you build a reputation of one who maintains the land being leased, fences, not overgrazing etc., people will bring the leases to you knowing what to expect. There are a great deal of old ladies out there with thousands of acres of productive land that would rather lease it out than ranch it. We are also seeing and increase of people who inherit ranches and have no idea how to run them or have no desire to do so. I think these two types of people are perfect targets to approach for grazing leases. I think a herd's potential is limitless through growing it on leased land. So you lose one lease, fine, you move them to another....I think they can be that easy to get once your up and running. I believe this is a way to perserve you capital by putting it in cows and not land. In the midst of this operation there is a "headquarters" of deeded land that serves as the nucleas of the operation. I know this is not at all very indepth, but I look forward to your responses and a chance to maybe explain all this in greater detail. I could literally type on and on for pages.......What are your thoughts???
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[email protected]

 

[Anonymous]

: The "business model" for my cow/calf operation involves substantial lease land. Several people I am involved with think GOOD leases are virtually impossible to obtain. I am talking about leases for 500+ units. Here in Texas, good land goes for $20-25 an acre. However, I think if you build a reputation of one who maintains the land being leased, fences, not overgrazing etc., people will bring the leases to you knowing what to expect. There are a great deal of old ladies out there with thousands of acres of productive land that would rather lease it out than ranch it. We are also seeing and increase of people who inherit ranches and have no idea how to run them or have no desire to do so. I think these two types of people are perfect targets to approach for grazing leases. I think a herd's potential is limitless through growing it on leased land. So you lose one lease, fine, you move them to another....I think they can be that easy to get once your up and running. I believe this is a way to perserve you capital by putting it in cows and not land. In the midst of this operation there is a "headquarters" of deeded land that serves as the nucleas of the operation. I know this is not at all very indepth, but I look forward to your responses and a chance to maybe explain all this in greater detail. I could literally type on and on for pages.......What are your thoughts???<br>where is this lease land and where are these people that don"t want to ranch? ever think of starting a web site with this kind of info?<br>

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[email protected]

 

[Anonymous]

Jay, your plan sounds good. We've found some stuff I'll pass on to you. 1. Some absentee landlords don't care how well or badly you manage the land, they just want their check on time. 2. Some absentee landlords are not absentee enough and want to tell you how to manage your operation. Some of the widows want the place run just like "Poppa" ran it. If he didn't do any pasture renovation or fertilizing, they don't want you to either. And he put the salt block out in a different spot, etc. 3. If you take someone's long time lease by paying more than the market price, it will not make you any friends in the cattle community. I've been on the short end of that stick and was not happy about it.Good luck....<p><br>: The "business model" for my cow/calf operation involves substantial lease land. Several people I am involved with think GOOD leases are virtually impossible to obtain. I am talking about leases for 500+ units. Here in Texas, good land goes for $20-25 an acre. However, I think if you build a reputation of one who maintains the land being leased, fences, not overgrazing etc., people will bring the leases to you knowing what to expect. There are a great deal of old ladies out there with thousands of acres of productive land that would rather lease it out than ranch it. We are also seeing and increase of people who inherit ranches and have no idea how to run them or have no desire to do so. I think these two types of people are perfect targets to approach for grazing leases. I think a herd's potential is limitless through growing it on leased land. So you lose one lease, fine, you move them to another....I think they can be that easy to get once your up and running. I believe this is a way to perserve you capital by putting it in cows and not land. In the midst of this operation there is a "headquarters" of deeded land that serves as the nucleas of the operation. I know this is not at all very indepth, but I look forward to your responses and a chance to maybe explain all this in greater detail. I could literally type on and on for pages.......What are your thoughts???<p>
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[email protected]

 

[Anonymous]

: Jay, your plan sounds good. We've found some stuff I'll pass on to you. 1. Some absentee landlords don't care how well or badly you manage the land, they just want their check on time. 2. Some absentee landlords are not absentee enough and want to tell you how to manage your operation. Some of the widows want the place run just like "Poppa" ran it. If he didn't do any pasture renovation or fertilizing, they don't want you to either. And he put the salt block out in a different spot, etc. 3. If you take someone's long time lease by paying more than the market price, it will not make you any friends in the cattle community. I've been on the short end of that stick and was not happy about it.Good luck.... With respect, I must make a point Frankie. There is nothing wrong with outbidding someone for a lease in my opinion. True, all you have to go on in the cattle "bitness" is your reputation, but one can't always please the crowd at the expense of putting food on the table for the family. Realestate is a shrewd business and I would offer the highest price I thought was feasible for a lease, regardless of who had it for how long. Just my thoughts.....thanks<p>: <br>: : The "business model" for my cow/calf operation involves substantial lease land. Several people I am involved with think GOOD leases are virtually impossible to obtain. I am talking about leases for 500+ units. Here in Texas, good land goes for $20-25 an acre. However, I think if you build a reputation of one who maintains the land being leased, fences, not overgrazing etc., people will bring the leases to you knowing what to expect. There are a great deal of old ladies out there with thousands of acres of productive land that would rather lease it out than ranch it. We are also seeing and increase of people who inherit ranches and have no idea how to run them or have no desire to do so. I think these two types of people are perfect targets to approach for grazing leases. I think a herd's potential is limitless through growing it on leased land. So you lose one lease, fine, you move them to another....I think they can be that easy to get once your up and running. I believe this is a way to perserve you capital by putting it in cows and not land. In the midst of this operation there is a "headquarters" of deeded land that serves as the nucleas of the operation. I know this is not at all very indepth, but I look forward to your responses and a chance to maybe explain all this in greater detail. I could literally type on and on for pages.......What are your thoughts???<p>

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[email protected]

 

[Anonymous]

I didn't say it was wrong, just it would not make you any friends in the cattle community. If you can live with that, go for it.<p>: : Jay, your plan sounds good. We've found some stuff I'll pass on to you. 1. Some absentee landlords don't care how well or badly you manage the land, they just want their check on time. 2. Some absentee landlords are not absentee enough and want to tell you how to manage your operation. Some of the widows want the place run just like "Poppa" ran it. If he didn't do any pasture renovation or fertilizing, they don't want you to either. And he put the salt block out in a different spot, etc. 3. If you take someone's long time lease by paying more than the market price, it will not make you any friends in the cattle community. I've been on the short end of that stick and was not happy about it.Good luck.... With respect, I must make a point Frankie. There is nothing wrong with outbidding someone for a lease in my opinion. True, all you have to go on in the cattle "bitness" is your reputation, but one can't always please the crowd at the expense of putting food on the table for the family. Realestate is a shrewd business and I would offer the highest price I thought was feasible for a lease, regardless of who had it for how long. Just my thoughts.....thanks<p>: : <br>: : : The "business model" for my cow/calf operation involves substantial lease land. Several people I am involved with think GOOD leases are virtually impossible to obtain. I am talking about leases for 500+ units. Here in Texas, good land goes for $20-25 an acre. However, I think if you build a reputation of one who maintains the land being leased, fences, not overgrazing etc., people will bring the leases to you knowing what to expect. There are a great deal of old ladies out there with thousands of acres of productive land that would rather lease it out than ranch it. We are also seeing and increase of people who inherit ranches and have no idea how to run them or have no desire to do so. I think these two types of people are perfect targets to approach for grazing leases. I think a herd's potential is limitless through growing it on leased land. So you lose one lease, fine, you move them to another....I think they can be that easy to get once your up and running. I believe this is a way to perserve you capital by putting it in cows and not land. In the midst of this operation there is a "headquarters" of deeded land that serves as the nucleas of the operation. I know this is not at all very indepth, but I look forward to your responses and a chance to maybe explain all this in greater detail. I could literally type on and on for pages.......What are your thoughts???<p>
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[Anonymous]

: how many acres/pair @ $25/acre? How long is <br>grazing season? will you buy hay? How many cows<br>can you look after during calving season or will you<br>hire help?? how spread put will you get??<br>I'll say that $25/acre is high compared to my area<br>(S.C. KS.) I pay $10.00/acre 5-6acres/pair for <br>5/6 months of grass season. Just remember your not<br>the only one out there trying to get bigger-out bidding<br>someone & then not making any profit isn't for me!<br>owning ground isn't a reqirement to running a herd &.<br>There are tax advantages to leasing ground.

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[Anonymous]

I agree with what the others say. In my part of Texas it's WHO you know..and $20-25 IS high for our area of Texas. i can't see how you could make a profit with that kind of lease expense especially after you have the other fertilizer, weed killer, fencing expenses. The majority of the placeslike you mentioned (at least around here) have fallen down 100 year old fence, 2nd, 3rd and 4th growth mesquite, and weeds galore.<p>: The "business model" for my cow/calf operation involves substantial lease land. Several people I am involved with think GOOD leases are virtually impossible to obtain. I am talking about leases for 500+ units. Here in Texas, good land goes for $20-25 an acre. However, I think if you build a reputation of one who maintains the land being leased, fences, not overgrazing etc., people will bring the leases to you knowing what to expect. There are a great deal of old ladies out there with thousands of acres of productive land that would rather lease it out than ranch it. We are also seeing and increase of people who inherit ranches and have no idea how to run them or have no desire to do so. I think these two types of people are perfect targets to approach for grazing leases. I think a herd's potential is limitless through growing it on leased land. So you lose one lease, fine, you move them to another....I think they can be that easy to get once your up and running. I believe this is a way to perserve you capital by putting it in cows and not land. In the midst of this operation there is a "headquarters" of deeded land that serves as the nucleas of the operation. I know this is not at all very indepth, but I look forward to your responses and a chance to maybe explain all this in greater detail. I could literally type on and on for pages.......What are your thoughts???<p>
<br>
<br><hr size=4 width=75%><p>


[email protected]

 

[Anonymous]

: I agree with what the others say. In my part of Texas it's WHO you know..and $20-25 IS high for our area of Texas. i can't see how you could make a profit with that kind of lease expense especially after you have the other fertilizer, weed killer, fencing expenses. The majority of the placeslike you mentioned (at least around here) have fallen down 100 year old fence, 2nd, 3rd and 4th growth mesquite, and weeds galore.<p>Those are precisely the type of places that are not good lease land. Ofcourse, there are many places in Texas where you can lease land for $10 and acre or even less. It is basically not good land though. Personally speaking, every lease that I come across that will run a unit to just a few acres is that much. Perhaps you could bargain them lower, probably not much lower. I am talking about the best lease land on the market, not the junk. The largest cattleman in Texas follows a model similar to this. Get online or pull out a journal or even contact some lease brokers and you will see that leases of quality are in this price range. Even if the leases were cheaper, as you believe, all the better, that means that a system such as this would work all the more.....thanks for your time and comments.<p>: : The "business model" for my cow/calf operation involves substantial lease land. Several people I am involved with think GOOD leases are virtually impossible to obtain. I am talking about leases for 500+ units. Here in Texas, good land goes for $20-25 an acre. However, I think if you build a reputation of one who maintains the land being leased, fences, not overgrazing etc., people will bring the leases to you knowing what to expect. There are a great deal of old ladies out there with thousands of acres of productive land that would rather lease it out than ranch it. We are also seeing and increase of people who inherit ranches and have no idea how to run them or have no desire to do so. I think these two types of people are perfect targets to approach for grazing leases. I think a herd's potential is limitless through growing it on leased land. So you lose one lease, fine, you move them to another....I think they can be that easy to get once your up and running. I believe this is a way to perserve you capital by putting it in cows and not land. In the midst of this operation there is a "headquarters" of deeded land that serves as the nucleas of the operation. I know this is not at all very indepth, but I look forward to your responses and a chance to maybe explain all this in greater detail. I could literally type on and on for pages.......What are your thoughts???<p>

<br>
<br><hr size=4 width=75%><p>


[email protected]

 

[Anonymous]

I agree that putting your capital into cattle rather than land is a smarter way to go.<p>I recently sold my 40-acre (cow to the acre country) farm and am now leasing 100 acres nearby. Because of the concentration of dairy farms in the area, most good land leases from $100 to $150 per acre. I'm leasing this relatively run-down land for $40 an acre.<p>The lease agreement states exactly who's responsible for which of the maintenance and capital expenditures (watering system, fencing, fertilizer, pasture renovation, weed control) and defines the soil fertility and carrying capacity goals we are aiming for.<p>The drawback so far has been the owners' children, who occasionally spend the weekend on the property (part of the land is excluded from the lease so that they can do this). Some of the kids (who have kids of their own, so they're not young) just don't want to recognize that they aren't supposed to go onto the leased part of the property.<p>Let us know how you go.<p>Liz Jacobsen<br>Buln Buln East, Victoria, Australia
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[Anonymous]

Jay,<br>Why are you asking for info here? Sounds like you are way ahead of most folks here.<br>What you discribed is how I started farming with my brothers many years ago. The best advise I can give you is to work the land like you own it and stay out of the coffee shop(the coffee shop crowd is always a bunch of nay sayers like many below). In a few years we were offered more(and better) land than we could farm. In agriculture reputation isn't the most important thing, it's the only thing. Good Luck.
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[email protected]

 

[Anonymous]

: Sounds like your planning the same adventure as i am . I am trying to get out of the horse business , try making money in that! Every budget i have developed and every model option says you can make money if , make that IF you are a very smart business man with great self disipline , do your homework , dont pay too much for anything , do all of the labor that you can yourself , have good luck and excellent weather and talk to God a lot . Sounds fun doesnt it ! Good Luck !

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[email protected]

 

[Anonymous]

: Jay,<br>: Why are you asking for info here? Sounds like you are way ahead of most folks here.<br>: What you discribed is how I started farming with my brothers many years ago. The best advise I can give you is to work the land like you own it and stay out of the coffee shop(the coffee shop crowd is always a bunch of nay sayers like many below). In a few years we were offered more(and better) land than we could farm. In agriculture reputation isn't the most important thing, it's the only thing. Good Luck.<p><br>I have never posted on this board before and wanted to get a feel for the knowlege of the posters. My guess is that most posters here are hobby cattlemen and not professional, which there is nothing wrong with. However, unless someone has been out hunting high capacity leases, it is hard to know the market or make a legitimate post concerning one. Another problem is that most people here probably are not from Texas. One can surely assume that the lease market will be different from state to state, so thoughts on leases that are out of state would probably be just thoughts without any real knowledge of the status of that states market. I agree with your statement that all you have is your reputation. If one runs a tight and honest operation that has a reputation of integrity and class that person we get more leases than grumpy farmer Jones down the road. Thanks for the comments and have a great day!<p>

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[email protected]

 

[James Reed]

Cattle Management Services

James Reed and the Family Ranch



We’re interested in providing the labor and land resources for your cattle. The third generation Reed Family Ranch has been our family ranch since the 1940’s and is a very stable operation. There’s plans to pass this property through future generations, so you can feel confident that you’re working with a stable situation that’s going to be around for a long time!



Reed Family Ranch Land, Water, and Grass



The Reed Family Ranch consists of 1,780 acres in the county of Navarro, Texas, and is located about a 1 ½ hrs drive south of Dallas. The land consists of both hill land and bottoms land – with about half of it bordered by the Trinity River. Over the course of three generations, the land and grass has not be abused, and the property is geographically located in an area in which water is abundant. Native grasses, which are both drought tolerant and moisture tolerant, have been planted to supplement our bottomlands and the mix produces large amounts of forage for grazing. Clovers have been planted on our hill land to provide both forage and nitrogen to our soil base. If there’s grass available in an area on our place, we graze it! The manner in which we graze cattle stimulates the growth of grass so things gets healthier and healthier each year. We do not compromise our property by grazing cattle at a rate higher than the land can provide for.



The below map shows where we’re located in Texas. There’s also an aerial photo below, where you’ll be able to see the various grazing pastures (there’s about 45) and the route of our gravity flow water distribution system.






Our Mission



Our mission reflects a win-win approach for all involved. We recognize that the only sustainable business relationship is one in which everybody wins. We want you to make lots of money from your investment; we want our cattle operator, James Reed, to have a steady income to support his family and put food on his table; and we want our land to become more and more productive each year. We believe this can be done through proper management and a trusting, profitable relationship!



What Do We Do?



Generally speaking, we provide all the land resources and labor for your cattle operation. We’re negotiable in terms of how your cattle are managed and will customize an agreement to fit yours - and our - needs for a successful business.



What Do You Do?



Generally speaking, you provide the cattle and let us know upfront of any special approaches that’s needed for managing your cattle herd. You’re then expected to pay a somewhat steady monthly fee. We’ll email monthly invoices to you for payment. The payment schedule will be based on the rate scale on a per head, per month basis – unless other arrangements work better for everybody.



Our Qualifications



James Reed is the cattle operator on the Reed Family Ranch and is the person that’ll be doing most all the work. As of the year 2005, his qualifications include the most recent 3 years of operating his own cow/calf herd on the Reed Family Ranch. James is now at the stage in his life in which a more consistent stable income flow, than a standard cow/calf operation can provide, meets his goals better. James is a certified artificial insemenator (AI breeding) and his past experiences include 5 years experience in penning and working cattle for the public, 5 years experience as dairy herdsman, and 5 years experience in overseeing a registered Angus, Charlois, and Tuli herd.



Just So You’ll Know Upfront, We Do Have a Stable Hunting Operation



We’re fully aware of the need for a cattle operation and a hunting operation to be compatible with one another. Generally speaking, there’s two types of hunting that occur on the Reed Family Ranch. To take care of the hog population and to help support our place, we normally conduct 5 group hog hunts each year. These hunts are normally every 30 days or so from February though June. Normally, there’s no hunting during the months of July, August, and September. We also have a hunting club with about 12 members that operates from October through the end of January. Because the demand for our hunting club membership is higher than the number of spots available, we’re able to choose hunting club members with compatible personalities. Our systematic, rotational grazing system allows us and the hunters (and you too) to know where the cattle are, in a specific location on the ranch. This knowledge, and our relationship with our hunters, just about eliminates any risk to your cattle from our hunting operation. You’ll be encouraged to get to know our hunters and take part in our hunting operation if you’d like to. All of our hunting club members are mighty fine people and have a good awareness of what it takes to operate a working cattle ranch. Also, you’ll be receiving a ranch newsletter that’s emailed out periodically, so you can keep more up-to-date on things.



Finances and Length of Agreement



Depending on the circumstances, type of cattle, and other factors, the cost per head per month will likely be in the $14-$17 range – although, of course, other factors may be involved. We like to customize each agreement to fit each circumstance and we’ll try to be as flexible as possible in the management and financial plan that’s created. We’re interested in long-term trusting relationships in which everybody wins. This means that James Reed receives a steady income to support his family and put food on his table; our land gets better and better each year through our use of a systematic, rotational grazing system, and you make lots of money on your cattle investment. In terms of the length of our agreement, we’re okay with a long-term arrangement. However, we’ve been in business long enough to know that issues come up sometimes that need to be worked on. Therefore, within any agreement we make, there must be an agreed upon procedure – in which we all have confidence in - which sets forth how we plan on resolving any issues that might need to be worked through from time to time.



For More Information



For an entire view of our operation, log on to the Reed Family Ranch website at http://www.reedfamilyranch.com/ and check us out. Cattle operator James Reed can be contacted at [email protected] and landowner Jim Reed can be contacted at [email protected]. We look forward to meeting up with you. Thanks!