Forage Focus: Pasture Rental Rate
I’m getting a few phone calls on pasture rental rates, and, in fact, a couple of weeks ago got myself in the middle of a pasture rental disagreement between two parties based on an answer I gave. This has caused me to go back and review some of the various methods that can be used to calculate a pasture rental rate. Let’s begin this discussion by laying down a few ground rules:
* Pasture rental rates should be determined and agreed on by both parties before any animals are placed on pasture. The best situation is to have the agreement in writing signed by both parties.
* Rental rates will vary depending upon the method and factors used in calculating a rental rate. There is not one correct answer. The method used may depend upon the quality of pasture available, time of year the pasture is rented and the type of livestock that will be grazed on the pasture.