Calculating Minimum Grazing Lease Rates for Hawai'i

Calculating Minimum Grazing Lease Rates for Hawai'i 

  • Pasture lease rates for grazing cattle in Hawai‘i vary widely, from a low of $10.00 to a high of $50.00 per acre. These lease rates should reflect the returns that ranchers can expect from a livestock operation and the value of the land when it is used for this or other economic opportunities. A rate that is too low overvalues the returns to the livestock operation and undervalues theland resource. Conversely, a rate that is too high overvalues the land and undervalues the livestock grazed on the land. For example, lease rates based on speculative land value rather than grazing value result in rates that
    are too high. All resource owners, whether they own land or livestock, benefit from market prices that accurately reflect the value of their resources to the community. To make sound resource management decisions for private, state, or federal lands, all decision makers must understand what the land contributes to the well being of the community.
  • The purpose of this publication is to provide information lessees and lessors can use to
    calculate a minimum lease rate for grazing and to present important concepts about developing lease agreements.
  • Calculating Minimum Grazing Lease Rates for Hawai'i - CTAHR Publication June 2007 

  • Adjusted Grazing Lease Rate Worksheet  (fillable form)