LEASE RATES PER ACRE OR HECTARE FOR RURAL PROPERTIES ON EAST COAST

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3 years 9 months ago #541751 by ramdec
Good morning im new to this site but would like to know if anyone has an idea how much the going rate is to lease land per acre or hectare for properties on the EAST COAST.

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3 years 9 months ago #541758 by Drainz

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3 years 9 months ago #541759 by LongRidge
Hi and welcome.
As indicated above, the rate depends on where it is, what it is set up to grow (horticulture more than dairy, more than meat), what facilities are provided (irrigation, sheds, stock water, electricity, fencing, stock yards). how flat the land is and proneness to flooding) what it's fertility is for what your leasor wants to grow, what other activities are likely to happen on the land (the land we lease has the owners on it, and sometimes they want to use the land, which can make it unsafe for them or for our animals), and how long you want the tennant there.

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3 years 9 months ago #541777 by ramdec
East Coast of North Island, the drainage is a bit blocked at moment so gets a bit of water but that's part of the deal to clean drains. The paddocks are flat easy access, has stock yards, and a hoses to water tank to fill troughs. The owners live on the site but not the part that is leased, so good security and fencing. Does $400 hectare sound right or $400 an acre?

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3 years 9 months ago - 3 years 9 months ago #541799 by LongRidge
For sheep and beef grazing, I work on half profit to each of land and animal owner, with the fertility returned after the lease to what it was at at the start. Damage is at animal owner expense, maintenance at land owner expense.
Fertiliser will cost about $500/h/yr, but that gets piled on at the start of the tenancy, and the lime part of it will last about 3 years.
You might be able to run 2 cattle/h, but will need to budget in making winter feed at 1 bale/2 yearlings/ 80 days so 80 bales/h at $6/bale, so $480/h for winter feed.
If you buy pure beef calves at 6 months old (and can keep them in) they should put on about 250kg/animal/yr at $5 per kg so $2500 per h minus $500 fertiliser minus $500 feed, vet etc so $1500 profit /h. $700/hectare per year sounds about right to me or $300 per acre , but ...and a very big BUT .... the prices for sheep and cattle meat are ridiculously high at the moment, and could easily go down to $2.50 per kg for meat. Then you will need to re-negotiate your payment rate, which land owners hate to do going down in price.
Last edit: 3 years 9 months ago by LongRidge.

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