Texas Grazing Lease
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How to fill out Texas Grazing Lease?
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FAQ
Stocking Rates in Texas vary from 1 cow per acre on heavily managed pasture in the Eastern portion of the state to 1 cow per 150 acres (4 cows per section) in the Trans Pecos Region of the state.
Farmers in northeast Texas paid the most to rent pasture land with an average of $14 per acre. That's up 50 cents over 2017. Renting pasture land in the Trans-Pecos region cost the least at $1.20 an acre, on average.
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.
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.
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).
Rent Paid for Agricultural Land At $138 per acre, the average rate to rent cropland in the United States in 2018 was $2 higher than in 2017. For irrigated cropland, the average rate per acre was $215 (up slightly from $212 in 2017) and for non-irrigated cropland it was $125 (up from $123).
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.
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.
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.
