By Chase Dodson, Farm Manager
As we look ahead to the 2026 grazing season, livestock markets remain historically strong, and those conditions are influencing grass rents across the region. While production costs for tenants have also increased, current market dynamics support a measured adjustment in grazing rents that reflects market conditions while remaining fair and sustainable.
Our approach is grounded in long-term relationships. The intent is not to eliminate tenant profitability, but rather to pursue rents that are market-appropriate and defensible for landowners, while remaining sensitive to the realities faced by producers.
Lease rates are closely tied to calf prices, which are up approximately 45% from last year; however, this does not equate to a one-to-one increase. While this increase reflects strong market fundamentals, rent adjustments will be more conservative to remain mindful of rising production costs across the industry.
Timing and Communication
Traditionally, lease discussions take place closer to the start of the grazing season. This year, conversations are beginning earlier to allow adequate time for communication and thoughtful negotiation. Tenants have been informed that an increase is anticipated, and discussions will continue with the goal of finalizing leases ahead of the grazing season.
Because any change from prior years can raise questions, it is important that lease discussions remain consistent and coordinated through a single point of contact. This helps ensure clarity, fairness, and continuity throughout the process.
Common Questions
“When cattle prices come down, will rent come down too?”
This is a fair and important concern. Over the past decade, rent has been adjusted both upward and downward in response to cattle prices. Because rent is calculated in arrears, changes can lag behind market movements, but history shows that rents have declined in lower-price years and will do so again if cattle prices soften in the future.
“What if the cattle market drops as fast as the corn market?”
Current cattle prices are largely driven by historically low inventory levels and the time required to rebuild the national herd. For that reason, any market correction is expected to occur more gradually. Even if broader market factors—such as trade or border issues—are resolved, a sharp and immediate decline in cattle prices appears unlikely.
“How are landowner costs factored into rent decisions?”
Landowner expenses such as property taxes, insurance, and ongoing land stewardship continue to increase. Strong livestock markets allow landowners to achieve a reasonable return while maintaining flexibility to adjust rents as market conditions change over time.
A Relationship-First Perspective
Strong working relationships are the foundation of successful grazing operations. Clear communication, consistency in approach, and market-based decision-making help create stability over time.
Questions and conversations are always welcome. Thoughtful planning and open dialogue now help set the stage for another productive and mutually beneficial grazing season in 2026.
