Suggestions on price ( $/acre ) for leasing good cropping country, grazing country. What do (or would) you charge (or pay)?
Trying to get a real world feel for leasing price. Have seen $80/acre for good cropping country, grows both summer and winter crops in a normal season, currently drought stricken.
Are you leasing country - what do you charge?
Are you hoping to lease country - what would you pay?
3 Answers
Hi Cranky Bill,
long story short - lease prices are usually set by the market and don't always follow common sense for returns, but the old rule of thumb between 3-5% of land value still holds for us down south.
We are currently leasing out land for approximatley 4% of the land value, with added perks for both parties. Eg. we have access to crop stubbles for grazing, they have removed some internal fences for ease of cropping with stipulation to refence at the termination of the lease.
From _muppet on instagram:
"3–5% of underlying value maybe 6% for good stuff"
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