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Re: OT: Land Rental for Grazing (Long)


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Posted by paul on May 17, 2015 at 14:43:22 from (76.77.197.114):

In Reply to: OT: Land Rental for Grazing (Long) posted by JDNewbie on May 17, 2015 at 11:08:45:

-As a "landlord", what concerns should she have?

-Tax implications/complications?

-Any special concerns with sheep?

-How do we ensure the land isn't over grazed?

-As she is not really looking to make "money" on this deal right now, would it be unreasonable to trade property improvements (removal of
cedar trees, fixing fence) for use of the land (she doesn't want to insult the guy)?

-In general, is it possible for this to be a scenario where the "tenant" and the "landlord" could both benefit?

===========

Liability and general upkeep of soils, fences, etc.


You will gain some rental income as farm income, but on 20 acres of run down land it likely will barely cover property taxes, so no much
concern at all. Some states have lower property taxes for land used for agriculture, so you might want to look to see if you can get lower
property taxes.


Sheep will eat grass lower and harder and rip up roots if they are overgrazed. A responsible tennent that figures they will be allowed back year
after year will manage the forage and not allow this to happen.

Sheep are harder on so e fences, or I should say can squeeze through easier, so maybe more liability on loose animals.


It is common to charge on a per animal per day cost. For example a cow you charge 45 cents a day to let it graze there. (Sheep are worth less
per day, I don't remember the conversion of Animal Units right now....) Once the grass runs out, it becomes costly for the renter to keep the
critters there, as they aren't gaining any feed, just spending money. If you charge $10 a month or $50 a year or whatever per acre, the reneter
can bring feed in and keep the critters there, not costing them any extra and so it gets overgrazed. Also just get a good renter - simple right.


You sometimes attract real characters when you trade labor for pasture..... A good solid business deal with cash will maybe attract a good
renter? You can then allow dollars off for services that get completed, but do cash up front so you get a good person as a renter? I'd be real
scared of attracting a cheapskate with lazy habits with a 'free rent for work' offer............ You are fishing the wrong end of the pond.

But it does work to let them pay off the rent with doing work, just set that up right. Full charges, then discount after.


With no fences, no water, no electricity, overgrown poor hay, you will be on the low end of the pay scale for sure! But it does sound like a plan to
keep up the property some, get back some of the property taxes.

As a renter a longer range plan, 3 years or more, would let me set up fences and water lines and rotational graze a lot easier, put more into it
because I know I will be there a time.

As a landlord, you have to realize grazing critters is an up and down occupation, in a crazy drought of flood the pastures might get ruined some
that is just Mother Nature. As well a person owning critters needs to plan in 12 to 24 month periods, you can't test the waters for a couple
months and then change your mind and throw them off the land. This is a long term deal, you will be stuck with each other for some time. There
likely are laws that allow the renter time to find new pastures if you toss them off without serious issues, as they need to plan and time out the
feeding of their stock.

Just some idle thoughts.

Paul


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