Tips On Pricing To Rent Pastures

At the Extension office, we regularly receive calls about the going rate for renting local pasture acreage. From the landowner’s perspective, it’s important to know a realistic rate to charge. And, if you’d like to run a few cattle on someone else’s pasture, it would be helpful to know a rate range that someone might charge.

While pasture rentals rates ultimately depend on what customers are willing to pay, there are some key factors that can help you better estimate what a reasonable rate might be.

First and foremost, the lease value is dependent upon the condition of the forage in the pasture. How much and what kind of plants are growing? A good stand of high quality pasture grasses mixed with legumes is much more valuable than a sparse field mixed with weeds. The condition of the soil can also have an impact on rental pricing. If the soil fertility has been maintained so plant available nutrients are at optimal levels, the pasture can grow healthier, higher quality forage with lower inputs. In the same way, if the soil acidity levels are within ideal range, those nutrients will be available to promote healthy plant growth. A free soil test can assess both nutrient levels and soil pH. Additional considerations can include factors such as the condition of the fences, access to livestock water and the convenience of the property’s gates and location.

In general, if the pasture conditions contribute to the growth of abundant, high quality forage, the cattle gain per acre will be higher so it is logical to expect a higher rental rate. An Arkansas Extension fact sheet entitled, “Renting Pastures” (FSA20) goes into greater detail about factors to consider when estimating the rental value of pastures as well as some example calculations. If you are interested in assessing pasture values, you can read the publication online at uaex.edu by searching “renting pastures.”