pasture rental -- need advice

[Doc]

Local cattleman (30 yrs experience) is looking for pasture to put a few (6-7) cows. Asked me about a contract and how much to rent, and I have no idea.

He is going to bring in hay; fertilize and lime the fields; fix the fences; cut the fields and take care of the cows.

Question: this seems tit for tat but do I need to put a nominal fee on the contract just for liability and/or to make it a business deal?

He told me that most of his other renters charge enough to pay annual property tax.

Any ideas, suggestions?

This is really good for me in the sense that I don't have to do so much work (I'm getting older) but can enjoy the cows.

[G. Seddon]

I've never done this before. I guess this sounds good, but whatever you do, put it in writing. Think of all the "what if's" (cows get out on the road, cows eat too many acorns, bull destroys fencing, water freezes over, etc.). You might check with ag agent for your area and see if he/she can make recommendations or suggest $ amounts.

[dlskidmore]

Rental fees are highly variable. How fertile is the soil? What other crops are grown on rented land in the area?

Personally, if the fellow was going to improve my pasture and put up fences I like, the monetary benefit is not a big deal for short term. If this is long term, all the improvements are for himself, and the money is a much bigger deal.

[Doc]

We can make it long or short term -- actually, the terms are up to me. I'm more or less doing him a favor but he's helping me out in a big way, too.

Indeed, I have contacted my extension agent.

In my mind, they take care of their cows, whatever that includes (fencing, hay, fertilizer and so forth) so that's just the work they do as part of rental here. Just want to be fair.

[dlskidmore]

If they leave before the improvements devalue, that is an additional benefit above monetary rent to you is what I'm saying.

[G. Seddon]

Originally Posted by Doc

We can make it long or short term -- actually, the terms are up to me. I'm more or less doing him a favor but he's helping me out in a big way, too.

Indeed, I have contacted my extension agent.

In my mind, they take care of their cows, whatever that includes (fencing, hay, fertilizer and so forth) so that's just the work they do as part of rental here. Just want to be fair.

I understand. What a great thing if it works out well for both sides! One always has to be careful these days, however, and that is why I mentioned having something in writing. I hope it will work out for both of you!

[Doc]

Agree that we will have a written contract.