December is generally a time when famers and ranchers begin thinking about next year’s business decisions. Farm land and pasture leases are typically considered for the following year. We generally field several questions on this topic so a discussion on some resources to help with the decision making process is in order.

One of the most common questions is “What does pasture land rent for?” Unfortunately, there is no short answer to this question, other than the standard reply of “It depends.” Pasture leases can be extremely variable, depending on what different parties bring to the table. If the landlord basically provides a place for animals to roam around during the summer, rental rate should be relatively low. The more the landlord provides, such as fertilizer, working facilities, high quality pasture, high quality fencing, multiple water sources, management or labor assistance, etc., the higher the rental rate should be.

Every couple of years, Dr. Ron Plain, Extension Ag Economist at the University of Missouri, does a statewide survey of lease rates. The most recent version was done in 2006. The information is contained in MU Guide G427 entitled “2006 Cash Rental Rates in Missouri”. Rental rates for cropland as well as pastureland are reported in this publication.

Additional pricing information can also be obtained by Dr. Plain’s survey on custom rates. This is contained in MU Guide G302 entitled “2006 Custom Rates for Farm Services in Missouri”. Information found in the following MU Guides: G426, Farm Lease Agreements and G428, Customary Farm Rental Arrangements may also be helpful in the lease development process. All of these guides can be viewed on the following web site: www.extension.missouri.edu/explore/agguides.

Once some idea of prices is obtained, the next step is to get the lease written down. We have several publications that have sample lease agreements. These are available from most Extension offices. These publications have information to help work through lease issues and help determine a fair lease value based on what each party provides to the agreement.

Bottom line is agriculture leases are extremely situation specific. The above sources can help you formulate the lease to the benefit of both parties. Finally, be sure to get the lease agreement in writing. If you need additional assistance, refer to the above publications or call your local University of Missouri Extension office. University of Missouri Extension is an equal opportunity / ADA institution.