More than 10,000 Saskatchewan crown land lessees will see their rental rates drop this year.
The province has announced that rental rates on cultivated land will drop eight percent while grazing leases will decline 11 percent. The rates are determined using a formula specific to each type of land.
Saskatchewan Agriculture’s lands director Al Syhlonyk said the formula for cultivated land uses commodity prices from the last full crop year and is based largely on wheat. Long-term yield data, the location and soil type also factor into the calculation.
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“In reality, the commodity prices have actually strengthened over the last six months,” Syhlonyk said. “(Lessees) are getting an advantage for this year.”
The average rate per acre in 2006 was $10.12.
Grazing leases are based on fall prices for calves, cull cows and feeders. Syhlonyk said the idea is that producers are selling in the fall and receiving the cash they need to pay for next year’s leases.
The rate is calculated on an animal unit month basis and will drop from $5.23 last year to $4.65 in 2007.
There are 10,200 agricultural leases in Saskatchewan. The vast majority of lease land, 4.9 million acres, is used for grazing. Cultivated leases total 618,000 acres.
