What rates do you get renting out pasture land?

[pbrooks]

I'm interested in buying pasture land in Oklahoma this summer. The trick is that I won't be able to personally move there until 2011 or so. I've heard that unused land can decline in value since it will eventually forest.

So I'm thinking of renting the land out, but am curious about the rates one gets in return. I understand people usually rent for grazing, or hay.

Anyone know the common rental rates?

Can anyone shed light on possible problems?

[Alice In TX/MO]

Rates vary with the area, but I can tell you that I get $800 per year on 80 acres.

If you are renting for pasture, make sure the renter is responsible for the fences. Get liability insurance, too.

[Tana Mc]

I am renting 10 acres of hill pasture in exchange for a butchered hog. I am renting another 10 acres in exchange for fixing the fence--- minor repairs---- but I am throwing in farm eggs supplied once a week because they are really nice people.
I'll probably throw in some pork,too. Both of these land owners set their price and made these barter deals. I was willing to pay cash but it pays in other ways to be a nice neighbor.
I am working out the details for renting another 15 acres nearby..... something along the same lines.....
Tana Mc

[agmantoo]

Good pasture suitable to support a cow/calf pair per acre rents for $8 for the cow and $4 for the calf under 500 lbs. Over 500 lbs and it is $8 each. This is the per month rate.

[rambler]

I was going to suggest 50 cents per day per cow/calf pair is a starting point - agmantoo is ahead of me with good advise today.

Would be less if you don't supply much, would be that much if you supply good fence, water, perhaps some supervision. So you are likely looking at less?

Watch out that folks don't over-stock if you rent by the acre. Different rainfall patterns mean more or less critters per year, in dry years you will get too many cattle on your land & damage the grass, take years to control weeds & get good grass back. They can put double the cattle on it, eat everything black, & move on.

A good agreement on who supplies what, what the stocking rate is: a good starting point is an extension agent in that area, might have example rental forums & what is customary in that area for rent.

Get a grip on liability insurance, as land owner you can be named in lawsuits by the renter or by the damage his cattle cause others. Often not your fault but you can still be dragged to court for it anyways, have the proper insurance.

Most folks are good, just mentioning the bad as well - you have to be prepared.

--->Paul

[Windy in Kansas]

When I farmed I rented several pastures and rented out one of mine that didn't have water in it. I rented it to the next door farmer who had rented it for years.

All pasture rent was $8 per acre with stocking commencing around April 1st and ending November 1st. Supplemental feeding usually starts in September or early October and most farmers would rather feed at home close by their feed supply than to haul to another location.

This was western Kansas where 8 acres per cow/calf pair is the norm for proper stocking.

The renter took care of fencing needs as well as seeing to the water needs. Water was usually supplied with a windmill, which meant that the pump and repairs were courtesy of the renter. They weren't allowed to just turn the mill on and let it run, it was to be on and off to conserve water.

The last I rented out pasture was in 1997 and it was still at $8 per acre then, as it had been for years in that area.

[Pony]

Sad voice of experience warning to follow:

If your renter agrees to maintain fences, make sure you inspect every once in a while to ensure s/he follows through. And as for water, make sure that the renter doesn't do any damage getting to water.

Guy across the road from us rents from a local farmer. He's supposed to maintain the fences. Well, his cows get out on a fairly regular basis.

As for the water, he told the folks that the former owner used to allow him to fill his tank from the spring that runs through the folks'/our property. Wanting to be neighborly and seeing no harm in it, the folks said, "Yes." Well, the neighbor was bringing his big ol' dual-y across the road to fill the tank, and he tore the H-E-double- hockey sticks out of our road.

DH informed him a few weeks ago that he has to stop doing it because it's going to cost us upwards of $1000 to fix where the creek used to be a trickle across the road -- and in the meantime, our road is now impassable until we can get the guy out with the Cat and a whole lot of gravel. Oh, and the DNR's involved at this point, too.

So, like I said, be sure to check in from time to time. It's your property, and there are a lot of people who are very thoughtless when it comes to other people's property.

Pony! <who has to haul materials uphill in a wheelbarrow for the duration>

[Philbee]

We lease out 105 acres and get the same as agmantoo . The rancher we lease to also leases the surrounding several hundreds of acres. He rotates his stock and has not done any damage to the land. The rent is not a great deal of money, but the tax savings on having land in agrigculture is huge.

[shelljo]

My dad rents pasture based on % gain. Can't tell you the percentage anymore, but I know that is what he charges.