Fence/Pasture Rental Agreement

Evening! Trying to wrap my head around this. Say a guy I know has a nice piece of ground that would look great with cows on it. Would it be feasible to erect a nice, sturdy permanent fence and keep our cows there rent free in payment for supplying and installing the fence. Then after 5?years or so, start paying yearly rent like normal. The fence would stay with the property even if we stopped keeping cows there. Purely thinking out loud here. Does this sound like a viable plan? I suppose the number of years would depend on the value of the fence and the yearly cost of rent. Thoughts?

Talk to a lawyer, it's cheaper than a fence. Get him to write a lease, that binds the owner to the time period, needed to turn a profit, plus X years, at x dollars per acre.

Guess it would depend on if the landowner wants to trade five years of rent for a fence. Im guessing not.

I met a guy that rents all his pasture. Everytime he finds more acres he puts up a Hi-tensile fence, uses wood corners and t posts with electric fence insulators. If he loses the pasture he goes out pulls the wire and posts and takes them home.

It works for him, depending on the soil it could work for you, he has a contract for the pasture and it states the fence leaves with him.

Nate

That makes sense. Simpler.

USA made O.K. brand 52'' X 16' galvanized wire panels can be bought for $18.00 each or less depending on where you get them, figure 2 T-posts per panel and T-post clips @ 5 cents a piece and you have a movable fence that no cow is getting out of for roughly a $1.80 per foot. This fence goes up and comes back down fast and lasts virtually forever, I have fenced temporary winter pastured corn, bean and cotton fields with these for many years. Also 100% tax deductible the first year.

in-to-deep, It is done quite a lot here in 'Texas especially a larger piece that may only need one or two sides done.
Figured like this....
Annul cost of Rent ./. into the total cost of fence = years guaranteed of no rent, till the Renter has recouped his investment.
it is a win-win Yrs guaranteed rent free in exchange for an improvement to property.
Works well to sure enough "off premises owners" or older folks who may not be in a financial position to put a new fence in on a property, or that is not all that convenient for them to continue to operate themselves. but just don't want to sell but keep to pass on to heirs at some later time. etc, etc, etc.
The Renter has a guaranteed time frame where he has that many acres of grazing for a specified time in Yrs... IE... 10 or so and a guarantee that in the event the owner dies the heirs can not force the renter out with out fulfilling the contract or must be bought out for any remaining dollars not yet recouped! ( Be made whole, for the dollars spent initially) AND a Right of First Refusal to lease/rent the pasture back for another specified time frame, after the first contract is fulfilled. As long as he is taking care of said property in an agreed upon manner.
Hope this helps!
Later,
John A.

(quoted from post at 18:01:28 11/23/12) Evening! Trying to wrap my head around this. Say a guy I know has a nice piece of ground that would look great with cows on it. Would it be feasible to erect a nice, sturdy permanent fence and keep our cows there rent free in payment for supplying and installing the fence. Then after 5?years or so, start paying yearly rent like normal. The fence would stay with the property even if we stopped keeping cows there. Purely thinking out loud here. Does this sound like a viable plan? I suppose the number of years would depend on the value of the fence and the yearly cost of rent. Thoughts?

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Here, 90 miles or so to your southeast pasture is rented by the # of head per year. That means that if I rent your pasture I pay X amount for the year no matter how long I acutally have animals in there. So for your plan to= work you would have to figure out the cost of the fence, devided by the # of cows deducted from the value of the rent. Then decide how many years it will take to pay for the fence. Then run the numbers by the land owner. You wil need to talk to the county ag folks there to get an idea of just how many dollars per cow. Here where the land is poorer they get between 40 and 45 per head for the year unless the cow owner is paying the land owner to feed and water over the winter with feed and hay provided.

I really don't see many people who are going to go without rent payment and just getting a fence. Most often the renter just come in and pust in temp electric.

Rick