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Pasture rental rates

B

Big Swede

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Joined
Jan 21, 2008
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1,179
Location
South Dakota
I was reading a discussion group on Farm Journal's site about farmers scrambling to try to renegotiate cash rental rates for next yeat with the economy in the current state and got to wondering if you all think pasture rental rates are due for a correction next year. I think we are in the highest priced area of the whole country with some paying nearly $40 per AUM. I guess if some land goes unleased it might bring the price down some in the next few years, but then it seems like someone is always willing to take it no matter what the price.

Do any of you foresee a drop in rental rates?
 
I forsee a big drop or else I won't be renting pasture! :D Maybe we can holler enough to get a Congressional bailout! :D Out here last year it started at $15.00 and went into the mid 20's! Guess that's much better than forty a head but still hard on the balancesheet. If your the renter i'd guess you'd be happy though!
 
Around here the going rate is around 35. A cattle buyer did say he could fill a ranch for 40.

The only way I see the pasture rental going down is if the economy puts such a tight grip on people putting out cattle that with a lack of profit they just quit putting them out. However, having said that there always seems to be some large operation that can fill up pasture. Possibly Ted Turner will be putting out buffalo in our neck of the woods someday. :? :wink:
 
For this grazing season just finished, I asked for $35/pair...the tenant happily paid $37.50/acre and said he would be more than agreeable to pay $40/acre next year. I told him that would be fine, but he had to make it (the $40/acre) work for him, too. The only stipulation I have is that LOOMIX is available to the cattle for the entire grazing season. Consumption is generally .25# pair/day until around the end of July or August, then continues upward until Oct. 1.....they are removed in early November, and the consumption for the last month of grazing is from 1.0-1.50#/pair/day. I then move the trough to the stalks when the cattle are moved. Those cows are on LOOMIX just about year round, the tenant is pleased with the results, and I end up with more and better pasture left than just about anybody around.

I heard of a section of grass renting down on the state line at a total expense of $65/acre ($45/acre, $20/acre aerial spraying expense) with a 60 pair maximum and a 5 (instead of 6) month grazing season. Then there was the one section of grass and another 1/4 section of grass that sold for $1,000/acre this past spring, when everything was at it's peak.
 
I give $30 for poor grass, but if I turn it down it will be gobbled up fast. just had a neighbor ask me today if I want another 1/4 of grass, then get the 1/4 of broke ground in a few years that it ties in with....told him I would take it !!


now, anybody got some nice Hereford cows for sale so I can fill it??
 
i paid 25 aum this year and felt lucky to have it,think i can do better next year as there are lots of absentee city owners whom might just want some of that decadent grass grazed off thier place.My buddy just took his cows below for the winter,$9.00 aum till may :-) lucky dude.Hays $250 a ton or there abouts,more through a feed store.
 
past_rent_map.gif

http://www.nass.usda.gov/Charts_and_Maps/Land_Values_and_Cash_Rents/past_rent_map.asp
 
If recent pasture land sales are any indication, there sure won't be a decrease. There have been two auctions locally this fall and they sure didn't indicate a drop in value.

My guess is that we probably won't see the increases that we've seen in recent years, but I doubt there will be any decrease.
 
you talking about those no horn s&s critters??? they got thier start from my neighbor....and I like to cut the horns off.....
 

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