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N.E. MT | On the blm ground you are purchasing the grass right, You will own that right so long as you are using it wisely and not causing destruction/damage to the property. You are also buying all improvements on that ground. Fence, water storage etc. there is a small management fee that you have to pay typically based on AUM/used. That is solely for the maintenance/management of the ground as you already have purchased the right to the grass. The rights are mortgageable and hold significant value.
in Montana the state leases are 10 year terms and the fees are figured off the feeder cattle market so long as nobody bids you up on your lease. I would be Leary of investing in this property solely on account of the amount of state lease ground with it. I’m sure different states have different systems but in Montana the state ground has become more of a thorn than useful and people have been outbid by activists groups ect. They are bidding people off ground they have had leased for very long periods. Every 10 years your lease is open to a 30 day bidding period and anyone can essentially steal that lease from you if they desire to. The bidder must buy all improvements from you at fair market value. Usually most state ground improvements come on year 10 of a lease. People that come in and do this are generally pretty well shunned by the ag-community.
As far as the acres there is probably some rough area where the fence runs not necessarily on the property lines and those “free” acres can catch you another 10 cows.
Looks like a pretty tough way to raise 500 scrappy calves. Maybe someone with more knowledge of this specific area will chime in. | |
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Wanna be a cowboy? 100+ sections, 2.5m$
