Oklahoma pasture rental rates, 2010-11

              Division of Agricultural Sciences and Natural Resources • Oklahoma State University
CR-216
Rev. 1110
Figure 1. Regions Used in Reporting Farmland Leasing Survey Results.
1 Advantages and disadvantages of different types of lease agreements are discussed in OSU Extension Fact Sheets AGEC-214 and AGEC-215.
Northwest North Central
Southwest East
Oklahoma Pasture Rental Rates: 2010-11
Damona Doye Roger Sahs
Regents Professor and Extension Economist Extension Assistant Specialist
Rental agreements and rates are influenced by the landowner’s costs, the tenant’s expected earnings, previous rates charged, competition for the land, government programs, tax laws, and the non-agricultural economy. The results of a statewide farmland leasing survey conducted in August of 2010 are reported here. Respondents were individuals con­tacted through the Oklahoma Cooperative Extension Service who agreed to complete periodic surveys plus recipients of a mailing by the Oklahoma Agricultural Statistics Service. Approximately 290 surveys were returned with useable data. Figure 1 shows regions of the state used in reporting survey results: northwest, southwest, north central, and east.
Most tenants and landlords in Oklahoma appear to be satisfied with their lease agreements. About 60% of the respondents classified their leasing agreements as good or excellent from the standpoint of fairness with an additional 27% classifying their agreements as adequate.1 Survey re­sults document some regional differences in rental rates and average sizes of tracts rented.
Pasture Rental Rates
Common methods of renting pasture include:
1. rate per acre,
2. fixed rate per hundredweight per month,
3. flat rate per pound of gain, or
4. share of gain or profit.
In addition to factors previously mentioned — the land­owner’s costs, the livestock owner’s expected earnings, and previous rates charged, etc. — the kind and quality of pasture, fences, location, and water also influence the pasture rental rate. Negotiations determine the type of agreement and the relative weight given to different factors.
Rental rates for native, Bermuda, and other pasture are listed in Table 1. The state average rental rate for native pasture was $11.61 per acre per year with responses ranging from $3 to $28.2 This average was up slightly from $11.18 in 2008. Native pasture rental rates were lowest in northwest Oklahoma at $10.07 per acre and highest in north central Oklahoma at $13.04 per acre. Figure 2 shows the distribution of per acre rates reported for native pasture in Oklahoma.
The state average rental rate for Bermuda pasture was $16.61 per acre, down $0.59 per acre from the previous survey, with responses ranging from $5 to $40. Rates were lowest in southwest Oklahoma and highest in north-central Oklahoma. Figure 3 shows the distribution of per acre rates reported for Bermuda pasture in Oklahoma.
Pasture rental rates for small grain pasture averaged $0.39 per pound gain and $2.75 per hundredweight per month for winter grazing (November through March) (Table 2). While the fixed rate per hundred weight was slightly higher than 2008, the flat rate per pound of gain decreased 5 cents. However, with limited observations these differences may not be significant.
Pasture lease agreements may assign responsibility for checking livestock, providing salt and minerals or supple­mental feed or pasture, and repairing fence to the tenant or landlord or both. Table 3 summarizes the distribution of survey responses by type of pasture: small grain winter grazing, small grain grazeout, and other pasture (includes native, Bermuda, and other improved pasture). Generally, the livestock owner was responsible for checking livestock and providing salt and
2 Averages reported are the simple average of rates reported by respondents. They are not weighted by acres in the lease agreement.
Current Report
Oklahoma Cooperative Extension Service
Oklahoma Cooperative Extension Fact Sheets are also available on our website at:
osufacts.okstate.edu