57 per cent of land use contracts were with landowners, while 68 per cent of grazing contracts were with landowners. Sixteen percent of respondents had grazing contracts with an average of three-quarters (480 hectares). In grazing contracts, 58 per cent of tenants were responsible for fencing, 22 per cent were responsible landlords and 23 per cent shared costs. Planting Summer Crops for Fall and Winter Pasture Another central issue is the state of closure and repair costs. Nibourg says the owner must make sure the pasture is in working order. It also involves providing a water source or, at the very least, supplying one, he says. This method is based on the carrying capacity of the pasture. The rent per AUM is multiplied by the carrying capacity of the pasture in AUMs per hectare to estimate a grazing rent per hectare for the entire grazing season. Rent per AUM is calculated either by multiplying the price of hay during the grazing period by the pasture quality factor (Table 3), or by using a typical rental price of the C2-10, Cash Rental Rates or Iowa Survey information file. To calculate a rental rate based on forage value, estimate the expected willow or hay production per hectare and multiply either 25 per cent of the price of grasheu during the grazing period or by 35 per cent of the price of hay for a well-established hay stand. If the tenant provides work and machinery for the hay harvest and pays half of the seed and fertilizer costs, a rental rate equal to 50% of the value of the hay crop would be more appropriate.
Use hay prices corresponding to the type and quality of the stand. Some typical pasture production levels are shown in Table 1. Ted Nibourg, agricultural management specialist at the Alberta Ag Information Centre in Stettler, Alta. says that good pasture management is of the utmost importance. Nibourg says there are pros and cons for the monthly animal unit payment system. The good news is that the owner`s land is preserved. Cows do as well and maintain productivity when grazing is not overgrazed. Pasture rental prices vary depending on the quality of the stand, the type of feed, the amount of wood, the condition of the fences, the availability of water and previous fertility practices in the pastures. To calculate cash rents for pastures and uhulands, use the spreadsheet in the accompanying “pdf” file, which you can click on here, or the C2-23 decision tool, calculating cash rents for grazing and Heuland.
Suppose a summer grass price of $100 per tonne is expected and an un improved yield of heidgras pasture of 1 to 1/2 tonnes per hectare (Table 1). The rental price per hectare ranges from $25 ($100 per tonne x 25 x 1 tun per hectare – $25.00) to $37.50 ($100 per tonne x 25% x 1.5 tons per hectare – $37.50). For example, a grass price of $100 and a high pasture valuation of $0.20 lead to a rental rate per AUM of $20 ($100 x $0.20). A bromine pasture can produce four AUMs per hectare during the grazing period (Table 1). The increase in the rate per AUM per AUM per hectare results in a rent of 80 USD per hectare (20 USD per AUM x 4 AUMs). For example, suppose the willow is bromine (high grass) pasture. Let`s also assume that the average price of grass in summer is $100 per tonne. The rental price per AUM is 20 USD (100 USD x 0.20 USD). If ten 1,000-pound cows are pastad with a calf at their side for three months, 30 AUMs will be used in the summer.
The rent is 600 USD (30 AUMs x 20 USD per AUM) for the summer. The rent for pastures per hectare can be determined by the imposition of a rental price corresponding to what others are asking for. Average land rental prices per county and state region are presented in the Cash Rental Rates for Iowa Survey C2-10.
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