Pasture lease drought considerations

By Todd Whitney, UNL

Drought conditions usually occur 1 out of every 5 years in Nebraska especially in the western regions. Further, when severe drought conditions occur in one year, the majority of the time…another extreme drought subsequentially follows in the next growing season. Our last back-to-back extreme drought occurred in 2012 and 2013. Will the extreme 2022 drought conditions repeat again this year? If so, should pasture lease agreements be adjusted?

Historically, pastures (especially in the western region) need time for full recovery after drought. During Dust Bowl years, heavily (over-grazed) pastures often resulted in delayed forage production for up to five years. Whereas, moderately grazed pastures recovered quicker.

So, now may be the time for landowners and tenants to include a clause in their written pasture lease agreements to account for potential dry conditions. Other pasture biomass management clauses might include severe hail and wildfire considerations.

Traditionally, pasture leases are for 5 or 6 months from April or May through October. Previously stressed warmseason grass pastures might be rested by delaying grazing season start in 2023. Further, pasture stocking rates could be reduced 10-15% and adjusted further if drought continues. In fairness, pasture rent owed should also be adjusted accordingly if the grazing season is shortened.

Consider pricing leases based on grazing animal unit months (AUM’s) rather than a flat rate per acre or cow-calf pair. A clause might be added to cover livestock water in case water source go dry. Typically, pasture weed control is a landlord expense; but if the pasture was overgrazed due to drought, weed control costs might be shared between landowners and tenants.

Start your communications early and make written agreements for fairness and equity. UNL Extension Ag. Econ. provides free fillable AgLease101.org leases at: https://cap. unl.edu Other drought information is available online at: https://beefwatch.unl.edu and https://cropwatch.unl.edu .

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