going rate per day that we could charge for grazing cow/calf pairs

[smcgrath76]

GF,
One approach we have used is paying the going rate for a few years and establishing a good relationship and then negotiating to an average of the previous 3 years.
So let's say $1 per day and if we pay on average say $3000 per year for three years for a piece of land, then negotiating that as the average.
Selling points are, it allows for a safe/guaranteed income regardless of drought, it allows us to rest the land for an extended period if required (securing future earning potential), and it allows us both to budget.

[farmers_son]

Can you make money paying the going rate? Given the price of calves has dropped in the last year by more than would typically be paid for a summers grazing for a cow calf pair it would seem that either it was very profitable to rent pasture in previous years or pasture would be rented in 2008 for some reason other than profit.

[smcgrath76]

The going rate is negotiable in my world. We often offer other non cash incentives such as stewardship, ploughing a yard out in the winter, etc.
Once the land is converted into a $/acre type scenario and management is well done, then I think you can make money.
For myself, if cows could not make money I think it would be time to quit.

[sagewood]

Interesting topic for sure. I did rent my native pasture once or twice to neighbors who had no grass and I had extra grass and found that the extra work was a nighmare from the fact that bulls had to be managed differently; the renters expected me to maintain the fences that their bulls used a rubbing posts; they did not use fly control and I was expected to supply mineral and salt and treat sick animals all for the princely sum of $30/cow/calf pair. So from my point of view, renting a pasture needs to bring at least $1.00/day per unit because it is usually the land owner who winds up fixing fence, treating sick animals, making sure the water supply is solid and still moving the cattle on rotation to protect the grass and not let it get grazed down to 'dirt'. That is assuming that one cares about the grass--and for sure--I do care about my native grass.

I thought that renting might be a good way to go in my 'golden' years, but I still find that it is easier to manage my own herd, even if it means winter feeding, bedding, calving etc. etc. I keep hoping that one day I will win the lottery and then I can just let the deer, coyotes, grassland birds and the odd moose family hang out and enjoy the habitat. Dream on, right?

[smcgrath76]

It is too bad that you had such a negative experience with renting. I know in our situation, rental ground is very hard to find, so we do a lot of extras. We maintain and in some cases build fences, we plan seasonal use for native rangeland, we check cows, we provide mineral, we fix corrals, we plough yards in the winter, etc.
We have a great arrangement with our leases, and really work to communicate how what we are doing improves their landbase. They can also see the improvement just driving by.
I think in large part renting is like anything else, the hardest part is finding the right renter. This is also what landlords I know tell me. The wrong renter can be a pretty expensive proposition.