Lease of Land for Pasturing and Grazing of Cattle
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FAQ
When renting land for grazing cows and calves, the most common option is a cash rent by the acre. Issues in the agreement would typically address such things as stocking rate, maintenance of fences and improvements, weed and brush management, lease terms, and the rate per acre.
It is surprising how quickly a cow or two can eat down a small pasture.However, you will need to purchase hay to feed them because one acre is not enough land to support anything bovine. Cows can indeed be kept on small plotsan acre or twobut they must be fed.
1) $18 per month per pair. Pasture management, animal care, fence repair, minerals provided by cattle owner. 2) 95 cents per day per pair.
A grazing lease is a formal disposition from the Government of Alberta, normally granted on public land where grazing is considered to be the best long-term use of the land.
Leasing land to another person for grazing purposes can benefit both the landowner and lessee by allowing an additional source of income for the landowner and by permitting the lessee to run livestock on land without incurring the long-term debt associated with purchasing property.
What is a grazing licence? Grazing licences are short-term agreements for a period of less than 365 days, with no right of renewal. The agreement is effectively a licence over the land and avoids creating a legal tenancy.
Pasture rent may range from 1.5 to 2.0 percent of market value. For example, pasture with a sale value of $3,600 per acre will rent from $54to $72per acre ($3,600 x 1.5% to 2.0% = $54to $72).
You may have heard a rule-of-thumb is that it takes 1.5 to 2 acres to feed a cow calf pair for 12 months. That means we should be able to have 10 to 13 cows. Let's see how this rule-of-thumb holds up. It looks like our rule-of-thumb held up pretty good, 11 cows on 20 acres, is 1.8 acres per cow.
The average rental for a sheep and beef farm ranged between $30-$35 per stock unit. But for land suitable for dairy support purposes, rental could be between $40-$50 per stock unit.