Idaho Grazing Lease Agreement
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FAQ
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.
EXAMPLE FARM Beefy Acres is a cow/calf operation located in the Southeast. 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.
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).
NSW DPI state that although there is no prescriptive method, but generally lease values are reasonably stable between 59% of land value. For example, if land is valued at $2,500/ha and the agreed rate is 6% of the land value, the rental payment would be $150/ha.
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.
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.
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.
With regards to native pasture, the state average rental rate of $15.33 per acre increased more than $1 per acre compared to the 2016 rate of $13.95. Native pasture rental rates were lowest in northwest Oklahoma at $11.61 per acre and highest in eastern Oklahoma at $17.97 per acre.
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.