Unlike an agistment contract pursuant to which the owner of livestock entrusts another party with the owner's livestock to graze and pasture on the agister's land, a permit to graze or a lease to pasture livestock does not involve a bailment of the livestock to an agister, but involves the owner of grazing land and pasturage permitting the owner of livestock to use the land for grazing and pasturage purposes. This usually takes the form of a grazing permit or pasturage lease, which should conform to the law concerning grants of easements or leases generally.
Lease of Land for Pasturage and Grazing of Cattle
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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.
Grazing lands cover a broad range of land use types and include: Pastures: a field covered with grass or herbage and suitable for grazing by livestock;Grasslands, which may be used, either partially or exclusively, as grazing land.
The average rate to rent irrigated and non-irrigated cropland in 2018 was $215 and $125 per acre, respectively. The average rate to rent pastureland was $12.50 per acre in 2018. These cropland rental rates and pasture lease rates vary greatly by state, with Iowa and Illinois near the top of the list (not surprising).
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).
Agricultural land cannot be leased for any period whatsoever, except in the districts of Uttara Kannada and Dakshina Kannada for the purpose of utilizing the land for aquaculture for a period not exceeding 20 years.However there is no problem in getting the agricultural landed property on lease.
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.
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.