Grazing Rental Formula
Rent rate = price per pound x 46 pounds x 0.8 x 12.75%
- Price per pound = the preceding October/November weighted value of beef (i.e. calves, feeders & cull cows)*.
- 46 pounds = the amount of beef actually produced from one AUM.
- 0.8 = 80% conservation factor. A factor that allows the leaseholder to stock at 80% of the established carrying capacity of the land thus allowing for constant stocking of the land. This actually allows one year’s free rent in five to account for drought years.
- 12.75% = percentage share of production that the Crown takes for rent.
Annual Rental Rate is multiplied by the calculated Animal Unit Month (AUM)** rating of the lease.
Example: Lease rated at 100 AUM X $7.17 (2017 rental rate) = $717 rental.
*Price per pound is determined using the average price of cattle marketed from October 1 to November 30 of the preceding calendar year as published by the Ministry for markets in Saskatchewan, weighted as follows:
Feeder steers 500-600 lbs: 35.0%
Feeder heifers 500-600 lbs: 15.0%
Feeder steers 800-900 lbs: 17.0%
Feeder heifers >800 lbs: 21.0%
Slaughter D1-D2 cows: 12.0%
**Animal Unit Month: means the number of animal unit months applicable to the land in question as rated by the Saskatchewan Assessment Management Agency or as determined by the Ministry to reflect the current grazing carrying capacity of the land.
*Prices were held at 2008 rates due to low commodity prices in the cattle industry
- Grazing Rental Rates decreased by 34% to $7.17/AUM for 2017 from $10.87 in 2016.
- Hay rental is 2X grazing rental = $14.34/AUM