Thinking About Leasing

[Family Tradition]

Good Day Everyone. I 'm needing some in put from everyone. I went and looked @ 100 acre lease yesterday about 2 miles from the farm. I've never leased before so while looking I tried to remember what had been posted here on the boards. I walked it out looking @ the pastures about 55 to 65 acres clear I'm guessing. This land is broke up in 3 seperate pastures 1 in good shape, 1 starting to need attention and the other is about 15 acres with 10 of that already been taken over. Found quite a bit of bermuda. There has not been any cattle on it for a couple of years but one of the locals has cut hay off of it. Looks like he was just getting the gravy. The pastures are starting to need attention needs some hogging done.

The fences need quite a bit of attention also before I'd feel comfortable putting cattle on it. Not totaly down but lose strands,water gaps out etc.

2 barns on it 1 a newer barn in usable condition the other an older barn in ok condition but beeing used for scrap storage. Not anything of value just a place to throw stuff away to keep from having it around the house. But makes barn unusabe to me. Cleaned up it would be useful

2 ponds and a small creek.

2 nice size holding pens attached to the newer barn but gates are all missing and no catch pens or working facilities.

They are asking $20.00 an acre seems kind of steep to me when I'm going to have to put quite a bit of time and money to make it workable. I think the property is probably worth it with everything up in good shape. I've tried to give you enough to understand what i'm looking at. So the question is what am I missing and am I being to critical. Thanks in advance

 

[backhoeboogie]

That is cheaper than anything you can buy. I'd jump on it. I'd also try to get extension options.

I am paying a little more for a place I am leasing. It is a money maker. The problem I have is the owner mandates a year to year lease and the lease has blended fertilizer stipulations, regardless of what soil tests disclose.

With the prices of hay, you should be able to make a few nickels on the grass alone. Is the Burmuda a common variety or is it impoved? (e.g. coastal) If there is coastal there, you should take it. Especailly only two miles away with working facilities and useable barn already there.

 

[redfornow]

Yep
pretty good deal there.
I would take it.
Tell em its alittle more than you are used to paying ask for a 3 to 5 year lease. That way after you get done with the work they cant take it back after a year and get your work for free...

MD

 

[Family Tradition]

Thanks for the reply rfn & bhb. Maybe I'm just on the leery side about just jumping in there. Oh bhb there aren't any working facilities & the Burmuda is costal. Do you have cattle on your lease bhb or just for the hay. Now ya'll really got me thinking. Thanks

I'm afraid the wife thinks I'm just going to keep farming til the moneys all gone

 

[bigbull338]

Thanks for the reply rfn & bhb. Maybe I'm just on the leery side about just jumping in there. Oh bhb there aren't any working facilities & the Burmuda is costal. Do you have cattle on your lease bhb or just for the hay. Now ya'll really got me thinking. Thanks

I'm afraid the wife thinks I'm just going to keep farming til the moneys all gone

around here pastures rent for $15 to $20 an ac.regardless of what shape the pastures or fences are in.lease land is hard to come by.you had better jump on the deal fast.get a 5yr lease if you can.

 

[Family Tradition]

Thanks for the input bigbull. Still researching this out going back to look at the property again tomorrow

 

[Fred]

I would see if they would give you a discount for the first year or two for the fence repair.You can put a bunch of money into fencing. You have to decide if the place is worth $2000/year to you.

 

[GMN]

That seems cheap. Do they put a limit on how many head you can put on the land?

Fencing supplies aren't cheap, I sure would try to get a longer than a year lease, and get it in writing, not just a verbal agreement.

GMN

 

[dun]

Have you thought of checking with your local extension office? That's part of their job, keeping track of lease/rent rates etc.

dun

 

[3MR]

I wouldnt say I thin kits cheap, but its not extremely outrages. I think I would ask for more than a three year lease if I was going to sink that kind of moeny into it.

 

[Family Tradition]

Have you thought of checking with your local extension office? That's part of their job, keeping track of lease/rent rates etc.

dun

I Have checked Dun they say that the state average is 12 to 35 so we're kinda in the middle.

 

[Double A Ranch]

Leases around here usually run around $20/acre. It depends ont he landowner as to who pays what. Sometimes the landowner pays for all supplies for repairs & the person leasing does all the work & sometimes the person leasing pays for all supplies and still does all the work. Obviously the first option is better. :lol: See if you can get them to pay for at least some of the repairs and improvements.

 

[Family Tradition]

Have you thought of checking with your local extension office? That's part of their job, keeping track of lease/rent rates etc.

dun

I Have checked Dun they say that the state average is 12 to 35 so we're kinda in the middle.

I think I would ask for more than a three year lease if I was going to sink that kind of moeny into it.

3MR I was thinking along the line of 5.

Do they put a limit on how many head you can put on the land?

GMN there is no limit if leased mine to use for hay or cattle.

I would see if they would give you a discount for the first year or two for the fence repair.

Fred I 'm going to try to get it discounted for 2 years.

Thanks for all the imput

 

[Horticattleman]

just expect that if he gives you a discount for the first two years he might stick you holding the dry cucumber after the lease is over. Maybe negotiate a set increase so you can plan for your increases. It would suck if after he gave you a discount and the lease was up he notified you of how proud he was of HIS pasture and now wanted the full $35.

 

[MrBilly]

For what you describe, $2000 is a lot of MOOLAH! I rent about 70 A for $300 per year, enough to cover the owner's taxes and that is it. Have a five year lease with option to prolong. Fences were like you said, I spent $17,000 to put in fences, a coral and two gas water pumps to pump out of a pond.

The people I lease from are very nice, the ladie's Daddy ran cattle and they just wanted to see cows back on the farm. I can do anything I want. I think this is our third year and the place looks great compared to what I first encountered. Weeds are gone mostly, have fertilized and limed, put in a bunch of gates and put electric in front of fence that was not upgraded.

The lease should be clearly stated as to duration, option to continue, what you can and can not do, etc, etc. The price should be based on what they are providing you - sounds like not much other than the dirt. If it is such a great deal why hasn't someone else leased it for cattle?

The cattle cycle is on the down turn, prices for calves and culls are going down, costs are going up.

Plant corn and forget the fences, or just use it for hay, but not for $2000. See what the guy who made hay paid, or did he?



Billy

 

[novatech]

For what you describe, $2000 is a lot of MOOLAH! I rent about 70 A for $300 per year, enough to cover the owner's taxes and that is it. Have a five year lease with option to prolong. Fences were like you said, I spent $17,000 to put in fences, a coral and two gas water pumps to pump out of a pond.

The people I lease from are very nice, the ladie's Daddy ran cattle and they just wanted to see cows back on the farm. I can do anything I want. I think this is our third year and the place looks great compared to what I first encountered. Weeds are gone mostly, have fertilized and limed, put in a bunch of gates and put electric in front of fence that was not upgraded.

The lease should be clearly stated as to duration, option to continue, what you can and can not do, etc, etc. The price should be based on what they are providing you - sounds like not much other than the dirt. If it is such a great deal why hasn't someone else leased it for cattle?

The cattle cycle is on the down turn, prices for calves and culls are going down, costs are going up.

Plant corn and forget the fences, or just use it for hay, but not for $2000. See what the guy who made hay paid, or did he?



Billy

With a 5 year lease I come up with $52.86 per A per yr. Am I right? This seems a little steep to me.