Here’s a piece of advice for parties entering into a pasture lease agreement – sign, don’t shake.
Rangeland specialist Don Fontaine said a lot of pasture deals are made with handshakes.
“Most of the time it works, but if it doesn’t it can create some problems, that’s for sure,” said Fontaine, who works for Saskatchewan Agriculture.
“It’s a business and unless you know each other very well, I think it’s a good idea to have things a little more formalized.”
A recent lawsuit involving a businessperson from Toronto who sent his cattle to graze in a Qu’Appelle, Sask., pasture drives that point home. The two parties are now embroiled in a dispute over what the pasture owner claims is an unpaid bill of $73,658.10. Among other things they are fighting over what rate was agreed upon.
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When writing contract details the person pasturing the cattle should ask:
- Is it tame or native pasture?
- If seeded, what is grown?
- How many acres of pasture are available?
- What is the carrying capacity of that land?
- Has the land been abused or overgrazed?
- What type of fencing has been erected?
- What kind of livestock are in adjacent pastures?
- Who’s responsible for doctoring the animals?
- Is the rental rate calculated per acre, per head of livestock or per day per animal?
- What is that rate? (The current community pasture rate is 33 cents per day per adult animal. Fontaine said the going rate at private pastures varies widely, but estimates it at somewhere between 50 and 80 cents per day per adult animal.)
- Who is responsible for controlling weeds and applying pesticides?
The landlord should also investigate the reliability of the tenant. Consider adding a caveat to the contract that no animals will be allowed to leave the pasture unless payment is received. The landlord should also include details in the contract about how and when payments will be made, said Fontaine.
Among other things the contract should set out rules on overgrazing, application of pesticides, handling of waste material, general use of the land, insurance, taxes, improvements, repairs of buildings and fences and renewal and termination of the contract.
Guidelines and sample pasture lease agreements are available on the website (www.agr.gov.sk.ca), at rural service centres or by calling Saskatchewan Agriculture’s publication distribution centre at 888-613-3975.
