Tablerock Ranch eastern Wa | Your question was how one decides what to pay, my rule of thumb is never pay more for the land then it can pay for itself in a bad year. That can be derived several ways in some cases, but I am always realistic about it, if I won't consider outside hunting revenue, I won't view it as a potential revenue stream. I built my farming and ranching business with that basic business survival concept.
If you have no financial leg up through inherited land, or other profitable farmland that can subsidize unprofitable properties, or a job in town that can prop it up, DONT OVERPAY live to fight another day, I don't rent any farm or pasture ground, now that's not because I wouldn't like to, it's just not available in my area. The last place we rented, is a premier hunting property and was cash offered to the owner while we rented it... we had the opportunity to bid on it, and my offer was one dollar more than what I believed they had been offered. We got it, but our cost to buy it was WAY higher than renting. It still penciled for cattle on a bad year. SIDE NOTE the ranch had been in the family since 1882 and they wanted us to have it, but in fairness they wouldn't tell us the other offered price. We went to lunch after closing and, told them there was one more piece of business. the owner laughed and said your going to hand me one more dollar, he noticed it was left off at closing, when I reached in my pocket and handed them a 1882 Silver dollar they knew they had made the right decision. |
How much to pay for pasture?
