One of the most frequent questions producers ask is, “What is a fair rental rate for pasture?” In the absence of a commercial market for pasture, producers often end up bargaining for a rental price. For instance, if there is a large amount of pasture acres in a given area, the rent may be lower than in an area with a low amount of pasture acres.
Pasture rental rates can also be influenced by alternative land uses. If there were the possibility for that acreage to be planted with corn, soybeans, or even a non‐row crop like hay, the rental price for that pasture would have to be competitive with rental rates for land in commodity crops.
Livestock facilities, their condition, the quality of the pasture, and availability of water all have an effect on pasture rental rate.
The factsheet, Determining Fair Pasture Rental Rates, shares landowner considerations, current market rates, forage value of pasture, and other influences in determining a fair pasture rental rate.