Value of grazing and farming?

[Idaho45guy]

I inherited my dad's place out in the country a month ago. I went out there the other day looking for ammo and noticed that there were cows in my pasture, grazing. I have no idea who owns them.

So I go onto the county GIS site to figure out who they belong to and I see that a large portion of my property is also being farmed, lol.

315080

I'm assuming my dad had some sort of agreement with the neighbor, and I'm not too upset, but when I contact the neighbor, I would like to have an idea of what sort of value the little bit of grazing and farming has.

I plan on selling the property and buying a piece closer to town and not on a highway, and I'm sure the new owners will want to know why there are cows in their pasture and a tractor on their land.

[Lakehouse2012]

That's a good looking piece of land! Looks like some is on the north side of road also?

I'm not a farmer, but interested in your findings from those that are...

Sent from my SM-A526U using Tapatalk

[abunaitoo]

My condolences on the loss of your father.

That's a nice track of land.
Good idea to find out about the cows.
Do they have an ear tag or brand mark???
Owner could be traced by those.
Maybe their special, cows and can talk. :mrgreen:

[Rockingkj]

Any idea how many acres are being farmed? And the same question with the pasture. I would expect your dad had a rental agreement which could be verbal or written. Your local Farm Service Agency could have information. Little farming goes on that the US Government does not have a track on.

[15meter]

In a perfect world there would be a written contract. No one would be allowed on the farm without a contract specifying rents and length of contract. We opted for a 3 year contract to slow down the potential of a guy coming in and farming with no fertilizer and running the farm down to nothing. We had 50+ years to build soil fertility up, didn't need a deadbeat rob all the nutrients.

If you have a decent ag university there, they will in all likelihood have data in place by the couny, divided by potential crop/pasture, tiled and irrigated.

Michigan State University here had all the data I needed to be able to negotiate what I thought was the best per acre rate I could get.

The last rent negotiations was interesting, the guy renting it wanted a rent reduction based on commodity and imput prices. I had hard numbers of what similar land was being rented for.

We settled on continuing the same rate for the next 3 years. With out the hard data it would have been hard to hold the line.

He ended up buying the tillable ground after my mother died in 2020.

[Winger Ed.]

Sorry to hear about your Dad.

Leasing out farm/grazing land is real common.

My Mom inherited a piece of land in the Texas Hill Country.
She leased it to her brother for $100. a year. For 60 acres, with the agricultural exemption, the tax on it was $60. a year.
Back in the 80s, she got greedy and pretty much wanted all of the money that came from the 36 goats wandering around on the place--
with him providing the goats and doing all the work involved with them.....

So,,, her brother pulled the goats off. When the county plane flew over the next year and didn't see any farming/ranching going on.
She lost the exemption, and her tax bill that year was a little over $1,000.
The place went from agricultural production to 'investment property'.
The next year, getting $100. Making $40. instead of paying over a thousand didn't seem like such a bad deal after all.

Your Dad may have been doing the same sort of thing.

The cows should have some sort of registry tag pinned through their ear with a number on it.
They are registered somewhere.
The county people can tell you who belongs to a cow with a given number tag.

[challenger_i]

If you are not "One of Those" (a vegetarian :) ), and depending on the acreage involved, a side of beef and keeping the fences in excellent shape might be a decent lease fee... :) Have a friend in Western Tennessee doing that with a 40-acre plot.

[Beerd]

In a perfect world ..........

Also in a perfect world the lines shown on the County GIS would match up with the actual property ownership lines.
Around here, many times they are sorta close, most times not so much.
..

[Rockingkj]

If you don’t know the neighbors. Stop in and introduce yourself. I come from a farm background and bet the neighbors miss you dad too. Since it appears do don’t know what business arrangements he may have made, if there is no written documents. Ask the neighbor, by and large folks in agriculture are honest forthright folks. And you will get the straight info. Be upfront that you don’t know. If your dad lived there for a long time most of the neighbors know the others business. If you let it be known you’re thinking of selling and you’re likely to be overwhelmed with meal invitations for folks looking to buy. Word of warning come across as an overbearing town jerk and you will find a chilly atmosphere.

[15meter]

If you are not "One of Those" (a vegetarian :) ), and depending on the acreage involved, a side of beef and keeping the fences in excellent shape might be a decent lease fee... :) Have a friend in Western Tennessee doing that with a 40-acre plot.

Around here(south east Michigan), that would literally be giving the farm away. $100/acre for junk land, highest I've heard recently was one guy who was offering $250/acre. If it's any kind of acreage, it should certainly pay the taxes.

Share cropping it, on 1/3's, 2/3 to the farmer, 1/3 to the land owner will yield $300-400 an acre on average yields.

Shares cropping is getting less common, and you need a farmer you can trust.

When I was sharecropping, I let the grain elevator do the division. I delivered all grain from the farm to the elevator with instructions on the division, with the elevator cutting the check to the land owner.

There were guys that would guesstimate bushels out of the field. I suspect their division had a lot in kin to the butcher's thumb.

[MT Gianni]

1/3 used to be common for the landowner for crops. Cattle get rated in AU, animal units like cow/calf pairs and ewes/ 2 lambs. Rate should be per month and mutually agreed on for the grass season.

[bedbugbilly]

Look in your Dad's papers to see if he had a written lease agreement. All depends how he did business. Personally, I always had a lease stating the acreage of tillable acres/pasture, amount being charged per acre, total and when it was to be paid. I leased our farmland out for many years and the rent paid the property taxes. If you can't find a lease, then start going through his bank statements for a deposit that is around what farmland is leasing for in your area and then find out from the bank as to who wrote the check. If your Dad did business on a word and a handshake, then start with the neighboring farmers - someone will know who is renting it. This is why people need to make sure they have information written down and their ducks in a row for those who will be their Administrator or Trustee. If he didn't;t do it, then put your detective hat on and do the footwork to find the answers. Along with an inheritance goes the responsibility and that includes all that is involved with the acreage he left you. If the cattle didn't belong to him, they belong to someone - but you own the property and the fences and it is now your job to insure that your fences are in good repair. If one or more of those cattle get out and someone hits them and gets injured, your cattle or not, you'll soon find out just what your share of the responsibility is.

[HWooldridge]

Leasing is common here in Texas to preserve the ag exemption. My wife and I live on 12 acres and 11 are in hay production - it really pays off if you can establish or keep the ag valuation. My neighbor has 10 acres and pays market value - her taxes are 10 times higher. We bought the place 30 years ago with the exemption in place and I’ve managed to preserve the ag usage. It’s saved us many thousands of tax dollars over the years.

More than likely, your dad leased the place to the neighbors for the same reason.

[GhostHawk]

Here in the Valley good farmland sells for 3500 to 5000$ an acre and rents for 55 to 75$ per acre per year.

Depends on quality of land and condition, and what you can raise on it. Grazing land much less of course.

[rancher1913]

contact your local ag extension office, they will have current rental ratesfor your area for cows and land. around here it runs about a dollar to a dollar twenty per animal unit per day, so 20 cows would be about 25 bucks a day. farm ground goes for 20 to 30 per acre cash rent

[WILCO]

I wouldn't sell. That's a nice bit of heaven.

[JimB..]

Lol, it’s a small property in a place you don’t want, so agree 100% with selling to get what you do want.

With that in mind you’ll be needing a survey, and I’d arrange that before speaking with the farmers so you have facts. I might also check to see if there are any encumbrances filed on the property, seems unlikely but best to know before you sell. Your sales agent could look, so no work for you.

When speaking to the farmers, not suggesting that you go in guns blazing and waiving the survey in their faces, for all you know the guy has a 99 year lease, just politely ask what the agreement was. You don’t strike me as a guy looking to make trouble, so I’m sure it’ll be fine.

[rockrat]

Also, check the laws as far as oral contracts go. Some states may have a limit on how long an oral contract can go on agricultural land. Might be only a year at the most.

[Electrod47]

Don't forget, whoever those cow's belong to might be your buyer. Keep it friendly, its obvious your dad had some sort of relationship with them.

[MaryB]

Also in a perfect world the lines shown on the County GIS would match up with the actual property ownership lines.
Around here, many times they are sorta close, most times not so much.
..

On the online GIS map my western property line is 10' inside my living room! Eastern line is in the middle of the farmers field... not accurate at all!

[MaryB]

Agreement may be letting them use it to keep the weeds down!

[JimB..]

Also, check the laws as far as oral contracts go. Some states may have a limit on how long an oral contract can go on agricultural land. Might be only a year at the most.

Oral contracts for real property are generally unenforceable, but as said above, be friendly because these are your potential buyers.

Also keep adverse possession in mind. If they openly used the land for a long time and your father didn’t either explicitly allow it or take steps to prevent it they could claim the land. Rarely won, and with his passing it’d be hard to prove, so highly unlikely, just something to know a little about.

[Rapier]

Every person in the neighborhood knows your dad passed, they know who owns the cows and who is farming the land and why. All you need do is go by and introduce yourself, let them tell you what you want to know, without you ever asking.

Like hello; I am George's son, I just came by to introduce myself. Then keep your mouth shut except for plesantries. Everyone is related, if you do not remember anything else.

In the country you never tell folks what you plan or intend to do, if asked, answer is I have not decided yet, is the best answer.

[Shawlerbrook]

Great advice about just meeting the neighbors and introducing yourself. Always start out as a friend as most people are not looking for trouble. If your dad had a lawyer, I would check with him/her to see if they were aware of the agreement. Make introductions, get to know everyone and what they are doing and talk money later. Like Kenny Rogers said...there will be time enough for counting when the dealings done. Assume the best and be prepared for the worst.

[Idaho45guy]

I found out that the cows belong to the brother of the late Larry Nirk, who was a friend of my dad's and the owner of Nirk Archery. Larry died years ago and his wife sold my dad the 10 acres and the defunct archery factory.

But, the land is listed as being owned by Ronald J. Nirk, Larry's brother. The problem is that he died back in 2014. So it must be a son or some other heir that owns the land and cows. There is a large farm about a mile from my dad's place that is in the Nirk name, so I'll stop by there and say hi and get a feel for the situation. Like I said, I have no problem with the cows keeping the weeds down, but one of my options is to rent the place out to someone with horses, and might not want to let the cows eat all the grass.

There is a decent barn on site, and a pad for a mobile home, along with water, sewer and power hookups. My step-dad thinks I could rent out the pad, barn, and pasture for $800 a month. Just a trailer pad in town runs $500 a month, and one with a barn, pasture, garage, and shooting range would be a great set-up.

[challenger_i]

In this part of Texas, cultivated land goes for $40 per acre leased, or on the quarters if rented. Rangeland goes for $15 per acre IF One can find it available. A bit more, if One gets the hunting rights.



Around here(south east Michigan), that would literally be giving the farm away. $100/acre for junk land, highest I've heard recently was one guy who was offering $250/acre. If it's any kind of acreage, it should certainly pay the taxes.

Share cropping it, on 1/3's, 2/3 to the farmer, 1/3 to the land owner will yield $300-400 an acre on average yields.

Shares cropping is getting less common, and you need a farmer you can trust.

When I was sharecropping, I let the grain elevator do the division. I delivered all grain from the farm to the elevator with instructions on the division, with the elevator cutting the check to the land owner.

There were guys that would guesstimate bushels out of the field. I suspect their division had a lot in kin to the butcher's thumb.

[jsizemore]

If your dad didn't farm the land, then he may have other folks doing the farming to maintain the farm status of his land. Big reduction in taxes. He might have only charged enough to cover taxes or a modest income comparable to bank savings interest. His accountant should be able to help with that. I'm not sure about your area, but most ag extension offices can tell you the ins and outs of your dad's farm and who has ag insurance for any crops being grown. Extension office is usually in the county seat. He may have had Fed money to maintain water run off and erosion control. Extension office can let you know about that too. It's a solid investment to have land that pays for itself or shows a little return but appreciates in value annually. It ain't given to the ups and downs of the stock market.

[Finster101]

I have little experience with stock, but I think the horses will be a lot harder on the grass than cows. Just based on what I see with my neighbors.

[john.k]

Horses can be risky from type of owner too......often horse owners are low income ,young people .......problems come when a horse needs vet care ..........friend of mine has had all kinds of probs with horsey folks .......including a fine from SPCA for neglect ,and one oddie .....a horse was killed by lightning.....horse owner demanded compensation......and in any case the carcasse had to be buried ,which is technically illegal in the town ,and cost $500 to hire a backhoe.

[Rich/WIS]

I rent the cropland on acreage I own in WI, not sure the going rate but set mine at $50 an acre. Makes a bit of money as well as maintains the ag use designation for tax purposes. Added benefit is land is in corn, sometimes some soybeans and alfalfa, so don't need to worry about food plots for the deer and turkeys.

[KCcactus]

Lease rates vary depending on the use. A friend's family has 120 ac in Hamilton Co, TX with lots of deer. They get $6,000/yr for a 4 gun hunting lease. Leasing license is $600, so that leaves more than enough to pay taxes. Last I heard, they were leasing part for hay for the ag exemption.

We have the wildlife management exemption on our 120 ac. It gives you the same tax exemption as ag. It's a little over a 90% reduction. Without the exemption, the taxes would be more per month than our mortgage payments were.

[perotter]

I have little experience with stock, but I think the horses will be a lot harder on the grass than cows. Just based on what I see with my neighbors.

Yes, they are very hard on the grass and land. They are also many times harder on the fences. The fences are ruined in a few years, unless they are rebuilt.

[perotter]

I rent the cropland on acreage I own in WI, not sure the going rate but set mine at $50 an acre. Makes a bit of money as well as maintains the ag use designation for tax purposes. Added benefit is land is in corn, sometimes some soybeans and alfalfa, so don't need to worry about food plots for the deer and turkeys.

That is a bit low for rent in WI. But as the renter looks to be taking care of the land and you're happy, one might just want to stick with it.

[10x]

They are not making farmland any more.
Find out what the current agreement is, the taxes on the land, and the income from the farmers.
Here land rental can be as high as $4000 a year for 160 acres - for grazing much less.
You may be able to get more income from rental that from investing money from the sale in a dubious economy.

[15meter]

Don't forget, whoever those cow's belong to might be your buyer. Keep it friendly, its obvious your dad had some sort of relationship with them.

Perhaps had a relationship, I had a cousin whose neighbor split a wooded building site of his property. The surveyor stepped out into Frank's field to shoot a line in the clear to mark the property lines. The new owner found the temporary survey stakes and assumed that was where the property line was. He put in a driveway and started using it going across my cousin's field. He ordered my cousin to stay off "his" property.

My cousin had to have his farm surveyed to retrieve his own property. A centennial farm, been in his family for WELL over a hundred years.

Over the years I ran into several similar silly situations. People who were either clueless about property lines or just didn't care.

Can't count the number of times I've had horse people wandering across fields. They were flat out offended when I told them they had to stop trespassing.

"It's not fair! You've got all this land and we can't use it!"

As they ride through ripe soybeans, shelling them out on the ground with every step.

[john.k]

Woman behind me has a slight problem .....I checked her title for a boundary fence ,and lo and behold ,the land is still in the names of her grandparents and great uncle ...who must have died over 50 years ago........the state revenooers are going to love this one .

[10x]

Perhaps had a relationship, I had a cousin whose neighbor split a wooded building site of his property. The surveyor stepped out into Frank's field to shoot a line in the clear to mark the property lines. The new owner found the temporary survey stakes and assumed that was where the property line was. He put in a driveway and started using it going across my cousin's field. He ordered my cousin to stay off "his" property.

My cousin had to have his farm surveyed to retrieve his own property. A centennial farm, been in his family for WELL over a hundred years.

Over the years I ran into several similar silly situations. People who were either clueless about property lines or just didn't care.

Can't count the number of times I've had horse people wandering across fields. They were flat out offended when I told them they had to stop trespassing.

"It's not fair! You've got all this land and we can't use it!"

As they ride through ripe soybeans, shelling them out on the ground with every step.

There are city folk who do not understand the need to not trample a seed crop. They do NOT know what swaths ready for combining are.
I had a tenant who let her children ride quads over the hayfield outside the yard. Trampled it flat. in fact they made a game of trampling it. They did not know that the hay needed to be standing to be cut and was a cash crop for me that helped keep their rent low.

[waksupi]

It used to be a regular thing for cattle being driven through my property during round up. Never bothered me, I knew most of the cowboys working the herd.
I did have an incident many years ago, of two women riding their horses through the property while topless. I'm still waiting for them to come back.

[15meter]

It used to be a regular thing for cattle being driven through my property during round up. Never bothered me, I knew most of the cowboys working the herd.
I did have an incident many years ago, of two women riding their horses through the property while topless. I'm still waiting for them to come back.

There's not enough eye bleach in the world to deal with the aftermath of the soybean trampler topless.

[GregLaROCHE]

If perspective buyers of the house are planning on farming the land, maybe they would opt to pay less without most of the land included. Whoever is using the land or someone else, maybe interested in buying it.

[jonp]

Sorry the way you got the land. It's not unusual down here to have farmers do this on a handshake more to keep the land open and not have it grow over but also for a lesser tax rate as agricultural land.
I'm sure that is the case here. I'd ask for one of the cows considering the cost of meat. I'd also meet the farmer as soon as possible and let him know your selling. He might be willing to buy and exchange hunting rights or maybe a slightly reduced price plus a cow each year for 20yrs or something.