What are the going lease rates for pasture?

[Twisted]

What are the going rates for pasture in your area? and or in mine if you are close to north central Arkansas. I am obviously not going to rent anything halfway across the state but am wanting more pasture and would like to know what the going rate for rent would be in my area. What is the normal duration of the lease and what stipulations are you held to with using the property? It has been 13 years since I have leased grass and with the price of land skyrocketing in the last several years, I really have no clue what to expect or offer. PM me if you had rather.

 

[kenny thomas]

In Virginia the extension agent has an estimated rate for each county. They figure by acre but there is so much variation in the pastures i figure it by animal unit.

 

[Twisted]

In Virginia the extension agent has an estimated rate for each county. They figure by acre but there is so much variation in the pastures i figure it by animal unit.

That would seem to be the best way to calculate value because as you said there is so much variation in quality. I would like to add 20 pairs to my herd. There is a lot of pasture not being used in my area that I want to ask about. There are also a couple of ranches for sale that are way overpriced for the common rancher/farmer operation. The big land grab by people from the big cities, has gotten everyone in our area greedy. I want a 5 year lease with an option for 5 more but do not know if that is even posable anymore.

 

[SBMF 2015]

What are the going rates for pasture in your area? and or in mine if you are close to north central Arkansas. I am obviously not going to rent anything halfway across the state but am wanting more pasture and would like to know what the going rate for rent would be in my area. What is the normal duration of the lease and what stipulations are you held to with using the property? It has been 13 years since I have leased grass and with the price of land skyrocketing in the last several years, I really have no clue what to expect or offer. PM me if you had rather.

This is just in our area; good grass, good water, good fences- up to $100/cow

 

[Brute 23]

Lease based on how many head it can handle not by the acre. $100 per head is a good starting point if it's decent ground and has pens. No pens knocks it down a lot because even portable panels have gotten so expensive.

Yes a 5 and 5 is an option. It is the best way to do it.

Most people are doing land owners are responsible for fences also.

Pens, fences, etc have all gotten to expensive for the lessee to bear as part of the lease.

You will hear a lot of stupid stuff when it comes to leasing but don't fall for it. Do what is best for you and don't worry about what others are doing.

 

[kenny thomas]

And get everything in writting.

 

[farmerjan]

In this area, it is by the acre mostly because that is what people understand... and it is high. We are paying anywhere from $25 /acre for mediocre pasture with mediocre fences... to as much as $100/ac for good pasture, good fences, good wells, cross fencing...
Everything we do is for 1 year initially... to make sure both sides are happy.... then 5 years minimum.
Some we have to maintain fences... and one place we are responsible for the wells... including any problems with the pumps....except lightning..... PITA ... but it is subdivided into several pastures of 8-20 acres each, with all permanent woven wire field fencing... all water troughs..... so we deal with it at present.
One we have built new fence in exchange for labor (owner bought materials), with the "value of the labor" taken off the lease expense.... and we got a 5 year lease/use guaranteed for that labor also.... and pay rent once the "value" is equaled out...usually in 1 to 2 years at most...
Some we do on shares of repair/build new since some places the fences are pretty "iffy"... and pay rent....
Some we get for free so they get land use tax breaks which is significant here...... not too many of them nowadays... but many of them the fences are pretty poor or what we call "wish fences"... wish they were fences and wished to stay up there fences...

EVERYTHING is in writing.... for both parties benefits... keeps anyone from getting hard feelings or anything like that.... everyone knows the score from the get go....

 

[Dave]

Here it is $25 per cow per month. $20 is the low ball figure and some are at $30. The holding capacity can vary greatly. There is lot of steep low production range land that is 5 to 10 acres per cow per month. And there is some flat irrigated pasture that is less than 3 acres for a cow for the entire growing season.

 

[GoWyo]

Here it is $25 per cow per month. $20 is the low ball figure and some are at $30. The holding capacity can vary greatly. There is lot of steep low production range land that is 5 to 10 acres per cow per month. And there is some flat irrigated pasture that is less than 3 acres for a cow for the entire growing season.

We are next to the Nebraska and Colorado pasture lease market. Nebraska can be $45-65/pair per month and Colorado $35+/pair per month. A lot of them have crop aftermath to go to in the winter to keep average cost down. I am at $33/pair per month out the gate on the neighbor's pasture and my other leases are $20 and are kind of special deals that I do whatever it takes to keep the landowner happy.

 

[Philip-TX]

USDA/NASS QuickStats Ad-hoc Query Tool

 

[ClinchValley86]

I've paid between 30 and 50 per acre here in TN. Has been worth every penny.

 

[farmerjan]

One added thing for us, rates I quoted is a per year expense. Have one that is about 15 acres, decent grass, but will fall off if dry since ground is shaly, fence we have fixed and we pay $500 per year. Run 5 pairs to as many as 8 head at most. Most of the places we have are in the 20-30 acre size... 2 are over 50 acres...

 

[Dave]

The prices I quoted are for range land. These are hundreds if not thousands of acres. Those bring their own set of challenges. There are none of the flat irrigated pastures here locally. I have no idea what the ones like that leased over in the Baker Valley are priced at.

 

[cowman82]

i'd make sure i'd know the land pretty good before signing a 5 year lease. Most of these places that are for lease are pretty gone. If you could find a place for sale thats nice and lease it for a good price that'd be the best bet. Just know you'll lose it at anytime. Most ground I've tried to lease through the years has been total failures. Ground is to terrible. fences terrible.. land owners want you to work for them and pay them and keep the place looking beautiful even though they've let it grown and have done nothing..e.tc..etc..... etc... et.c..

I just gave up a 20 ac field and this is the last year for this 100 ac i'm leasing as well. guys grandson is ruining the place and I'm not going to keep picking up and fixing everything he does.. done with it. not worth my time as I own some of the best ground around and it puts out 10x what these places do.... just wasting my time when I could be improving what I already have.

 

[kenny thomas]

Cowman82, you bring up some good points. For years i leased a lot of places and spent time and money making them better. Now i spend on my own land except for a few places close by that are free. My land went from what looked poor when i bought it 20 years ago to having the best grass around.

 

[Brute 23]

There is some thing learned from my boss early on about leasing hunting ground that took me a while to translate to cattle ground. Lease off what it is, not what it could be.

We would look at land and they would say if you cut lanes, and burn, and feed you will have excellent bird hunting. Or my favorite, if you feed protein and manage the deer, you will have some great deer. He would always say... pass. Even with businesses, he always says, I don't pay for potential. If it is there great, but it has no value to me now.

If I would have applied that to leasing cattle ground early on, it would have saved me some heartache.

 

[farmerjan]

@cowman82 and @Brute 23 are right on. We gave up a place that was just not worth the constant work and they wanted too much money. One place the same scenario... younger generation was constantly in and out, tore up fields riding through them, left gates open, all sorts of STUPID INCONSIDERATE THOUGHTLESS actions... and we wound up just giving it up... because we couldn't deal with them...

They all want all these big prices in lease/rent money.... and when the place is used up and abused with too many cattle, fences all trashed etc... they can't see why a hard working real farmer won't pay ridiculous prices for used up abused land... We have worked on some places and gotten them in much better shape... and had them leased out from under us because someone offered the widow or the heirs, some big money... in a couple years of abusing the place, we have actually had people come back to us and ask us to take it back.... because we kept it up nicer... but still wanted the big rent money... we say no thank you.... not anymore... not worth it.

 

[Dave]

I knew a guy who was running about 300 pairs out east of Seattle. Microsoft millionaires bought up old 80 acre dairies. Built a McMansion on it. They gave him free grazing. They wanted to keep the grass down and like to look at the cows. He made out like a fat rat. Free feed for his cows April through October. All he had to do was maintain the fences which started out good and smile and be friendly to the people. He had half a dozen places like that.

 

[dave_shelby]

Millionaires today are likely to be more ideological and not want cows. Heard of that happening particularly in Charlottesville

I've been trying to rent for some time. Old names and people are paying 40/acre mostly and beating the land up and invest nothing in infrastructure. Land owners are mostly old themselves. Jan, I disagree. If you look at land prices that's too low.

 

[Twisted]

@cowman82 and @Brute 23 are right on. We gave up a place that was just not worth the constant work and they wanted too much money. One place the same scenario... younger generation was constantly in and out, tore up fields riding through them, left gates open, all sorts of STUPID INCONSIDERATE THOUGHTLESS actions... and we wound up just giving it up... because we couldn't deal with them...

They all want all these big prices in lease/rent money.... and when the place is used up and abused with too many cattle, fences all trashed etc... they can't see why a hard working real farmer won't pay ridiculous prices for used up abused land... We have worked on some places and gotten them in much better shape... and had them leased out from under us because someone offered the widow or the heirs, some big money... in a couple years of abusing the place, we have actually had people come back to us and ask us to take it back.... because we kept it up nicer... but still wanted the big rent money... we say no thank you.... not anymore... not worth it.

Thank you all for the input but it isn't my first venture into renting and although I am not looking to get rich off of someone else's ground, I do want to make a decent profit. Jan, of the bad experiences that you have had, did you contact them first about leasing or did they contact you?

I don't think that I will or would be dealing with unseasoned city folk on the local pastures, maybe though, who knows?. I have been flat busted before in my life, so I have been educated extensively. The worst deals that I ever made were mostly my fault so am very thorough in calculating my decisions. I have built up or brought back to life about every place that I have ever had so I very well know the inputs, pitfalls, and disappointments.

I have considered buying another place but haven't found the right one. Most have houses and outbuildings that add to price considerably, but I don't need or want another house, slum lord I ain't. I also would like to easily pay for another place before I retire and with the interest rates as they are now, I'm a little reluctant to even try.