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Looking for rental rates in the west
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Russ In Idaho
Posted 6/6/2021 23:55 (#9045860 - in reply to #9045662)
Subject: Run east young man!!


“These are the times that try men's souls.”
That realty ad just proves to me I've never met a realtor that's ever told the truth. When they say maybe 4-5 months grazing it's pretty poor ground. Second they say no improvements, well does that mean no fences as well? I'm betting a year like this one, it's short on grass and water. https://www.blm.gov/

So just to answer your first questions the AUM(animal unit month) you would pay the BLM would be $1.35 a AUM this year. That can change depending on the economy and other factors. https://www.blm.gov/policy/im-2021-031 The surcharge you would pay if you subleased it out would cost you or the person you lease it to a added $7.40 AUM. Then all other cost associated with running the ground such as fencing, maintaince, water development or water hauling if needed.

So hard facts on this place you are looking at asking price of $843,975. 4,529 acres / $843,975 = $186.35 a acre.
150 head x 4 months is = 600 AUM's. Those AUM's are costing you $843,975/600= $1,406.63 a AUM's purchase price.

So this place is 7 sections of land, 2.25 sections of that place is BLM land. Those AUM's will be administered under a grazing plan/permit. That is a 10 year plan, depending on what year you are in the permit, those terms can change on every 10 year renewal.

I will be upfront with you and tell you what we paid for some AUM's a few years back. They appraised at $190 we gave $200. However AUM's in that same allotment brought over $475 a few years later. The difference is we bought a ranch, farm and cows w/AUM's. The other sale was just AUM's and they bought cows sperate.

Edited to add, if the BLM changes those permits and cuts grazing you lose your investment. Also other factors are if drought, fire, snow forces you off nobody reimburses you. Just think of it as buying something the bank will you loan you money on, however you can lose it with a stroke of a pen. All you own is a preference to graze if the grazing is available.

Edited by Russ In Idaho 6/7/2021 00:01
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