Trevor Lennox has found a way to earn income from cattle on his farm near Swift Current, Sask., without buying a single cow.
Lennox uses his land and expertise to custom graze his neighbour’s cattle each summer. The arrangement gives the neighbour additional pasture space while generating revenue for Lennox on land not suitable for grain crops.
Lennox, a forage development specialist with Saskatchewan Agriculture, said custom grazing is an opportunity for producers that is slowly growing in popularity.
“Over the last five to six years, we’ve had a lot of land seeded down to grass due to the marginal economics of grain farming,” he said.
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“It’s another way of marketing your grass.”
Lennox said cash is the short-term benefit but the long-term gain comes from nutrients returned to the soil in manure.
Organic matter is built up over time and the entire soil system is regenerated, rather than depleting nutrients through haying.
Custom grazing allows cattle owners to run more animals on a larger land base and gives them the freedom to do other things in summer.
Lennox said those interested can advertise in newspapers or by word of mouth in their communities.
He recommended using a written contract that clearly defines the responsibilities of each party in monitoring the animals.
It should include the length of time on pasture, typically from May to October, and detail who will pay for veterinary fees.
It should also list the acceptable loss rate and guarantee the animals’ access to plentiful water and feed.
Lennox advised accepting only healthy animals to minimize problems and handling.
Payment can be negotiated and delivered either through postdated monthly cheques or by paying half the fees up front and the remainder later in the season. Some choose to operate on a rate per pound of gain basis while others negotiate a flat rate.
Rates are generally $1 per acre per day for a cow-calf pair in southwestern Saskatchewan and 85 cents in the east-central and northeastern regions of the province.
Lennox said custom grazing provides an alternative to community pastures, which are not an option for many producers because of limited space and availability.
Access to water and feed for the duration of the contract is key to successful custom grazing but adequate fencing and animal husbandry expertise is also important.
“If you’re not comfortable grazing someone else’s cattle, then just renting out the pasture is a better option,” he said.
