Pasture rental rates are something many have questions about. By looking at changes in the cattle market prices, productivity factors influencing rental rates, stocking rates, expectations for rainfall and other factors we can estimate pasture rates will likely be similar to 2023 or slightly higher, depending on the region.
Establishing fair pasture rates can be a challenge. The most popular method is using current market rates based on average county rental rates for each county or region of the state. The U.S. Department of Agriculture National Agricultural Statistics Service provides annual average county pasture values each August.
In 2023, Nebraska regional rates ranged from $10.50 per acre in the northwest to $48.50 per acre in south central area to $88 per acre in the northeast.
The UNL Center for Agricultural Profitability also provides updated pasture rental values in the Nebraska Farm Real Estate Market Survey. Values are provided as cash rental rates along with cow-calf pairs and stocker rates. Preliminary results for the UNL survey come out in March and the final report comes out in June. For 2023 rates, visit the Nebraska Farm Real Estate website at:
Those in severe drought impacted regions might consider pricing leases based on grazing animal unit months (AUMs) or rent per head per month of grazing rather than flat rates per acre or cow-calf pair. A clause might be added to cover livestock water in case water sources go dry.
Typically, pasture weed control is a landlord expense, but if the pasture was overgrazed due to drought weed control costs might be shared between landowners and tenants.
Finally, stocker or feeder cattle producers might consider a rent per pound of gain method for example, the tenant might pay 50 to 60 cents to the pasture owner for each animal pound gained during the pasture grazing.
More educational resources such as the Nebraska Extension Budget sheets are available online at: ; or