Knowing the average rates for ag expenses like pasture leases can be an important step in negotiations.
Pasture leases are a common option utilized by Florida cattle operations for grazing cattle. Negotiating any sort of pay or cost for farm services is a typical process, but it’s one that can be full of awkwardness and confusion. Many people don’t like to negotiate when it comes to money, so a good starting point can be knowing the average rates for expenses like pasture leases for your area. Doug Mayo, University of Florida Extension director in Jackson County compiled average rates for ag expenses like pasture leases for a few Southern states—including Florida—in a recent issue of Southeast Cattle Advisor. Read a summary of the Florida portion below.
Average Pasture Leases for Florida
Knowing the average going rate for pasture leases in your area is beneficial whether you are the rancher or the land owner. “It can be pretty challenging to determine what is a fair price for both parties,” Mayo said in the publication. “Knowing the local, going rate can be challenging, especially if this is not something you do routinely. There are a few resources available to use as guides to at least get these conversations started off right with unbiased data that can really ease the initial tension.”
With information compiled by the USDA’s National Agricultural Statistic Service (NASS), Mayo released the following average 2016 costs for pasture leases in Florida:
- $13.00/acre: Central Florida
- $17.00/acre: Northeast Florida
- $34.50/acre: Northwest Florida
- $16.00/acre: South Florida
- $19.00/acre: Southeast Region Average
- $15.00/acre: Average for all of Florida
Factors Affecting Pasture Lease Prices
According to Mayo’s publication, average rental rates for pastures is determined in part by the different kinds of leases available. He explained how large land tracts, typically owned by government agencies, bring the average down, especially those with native ranges, those that are marginally improved or that have a level of management restriction.
Griffin Fertilizer is committed to helping both growers and ranchers make sound agronomic and economic decisions in order to maximize the health of their grove and pasture. As a full-service custom dry & liquid fertilizer blender and crop protection product distributor, we will continue our mission to further advance Florida agriculture. For questions or concerns about your farm or pasture, contact us and one of our team will be in touch.
