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Cattle grazing lease · TX

Lease your land for cattle grazing in Texas

Texas ranks 90/100 for cattle grazing lease exceptional statewide suitability. Texas is a top-tier state for this use; provider competition is strong.

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In-depth Texas guide

Lease your Texas land for cattle grazing — AUM rates, brushland economics, stacking

Texas grazing leases run $15–$30/AUM with carrying capacity from 0.05 AUM/ac (West Texas brush) to 1.5 AUM/ac (East Texas improved pasture). How rates work, lease structures, and how grazing stacks with wind and oil-gas.

Texas has more grazing acreage than any other state — roughly 100 million acres of rangeland, ranchland, and improved pasture. The economics vary dramatically by region: a Hill Country ranch grazing at 1.2 AUM/acre runs very differently from a Trans-Pecos brushland operation at 0.04 AUM/acre.

Per-AUM lease rates in Texas

A USDA NASS Texas grazing lease survey breaks down by region:

  • East Texas (Piney Woods + Post Oak): $20-$32/AUM, 1.0-1.5 AUM/ac
  • Central Texas / Hill Country: $18-$28/AUM, 0.4-0.8 AUM/ac
  • South Texas brush country: $14-$22/AUM, 0.3-0.6 AUM/ac
  • Rolling Plains: $16-$24/AUM, 0.4-0.7 AUM/ac
  • High Plains: $18-$28/AUM, 0.3-0.5 AUM/ac
  • Trans-Pecos (Far West): $10-$18/AUM, 0.04-0.10 AUM/ac

For a typical 1,000-acre Hill Country property at 0.6 AUM/ac × $24/AUM = roughly $14,400/yr in grazing income. Trans-Pecos rangeland at 0.06 × $15 = only ~$900/yr but the acreage usually comes with mineral rights, wind potential, and stacked income.

Texas grazing lease structures

  • Per-AUM: most common, flexible. Pay-per-stock, easy to scale up or down with rainfall.
  • Per-acre annual: $5-$50/ac/yr depending on region; predictable income, less rancher flexibility.
  • Per-head: $5-$15 per cow per month on improved pasture; very common in East Texas.
  • Share lease: landowner gets a portion of the calf crop. Uncommon outside heritage operations.

Stacking with wind, oil-gas, and hunting

This is where Texas grazing leases really compound. Same parcel can carry:

  • Wind royalties: 1-3 turbines on a 1,000-acre Panhandle ranch = $35-$80k/yr, with grazing continuing around them
  • Oil-gas surface use payments: $1,500-$10,000/well-pad/yr if you control surface (more if pipelines cross)
  • Hunting lease (whitetail in East TX, mule deer in West TX, exotic species in Hill Country): $10-$35/ac/yr layered on top of grazing
  • Mineral leasing: bonus payments + 25% royalty if you hold minerals in a tier-1 basin

A 2,000-acre Howard County (Midland Basin edge) ranch could realistically combine: $12k grazing + $40k wind + $35k hunting + $25k surface use = $112k/yr without producing any oil.

Texas property tax — the "ag exemption"

Critical: Texas Agricultural Appraisal (often called "ag exemption") requires demonstrating "primary use" of land for agriculture, which includes grazing. Maintaining a grazing lease keeps your ag-valued tax basis, which can be the difference between $400/yr and $40,000/yr in property tax on a 1,000-acre tract. Don't drop a grazing tenant without lining up the next one.

Best resources

  • TPWD Land Conservation Assistance Network — connects ranchers and landowners
  • Texas A&M AgriLife Extension — county agents can value your pasture honestly
  • Tillable and AcreTrader Lease — emerging digital lease platforms
  • Local livestock auction barn — best informal lease network in any Texas county

Next step

Run a free Landholder.com assessment — we score your Texas parcel for grazing using SSURGO soil data and identify stacking opportunities specific to your county.

Quick reference — cattle grazing lease basics

  1. 1
    Determine carrying capacity

    Stocking density varies wildly: 0.05 AUM/acre in Nevada to 2.5 AUM/acre in Florida pasture. Your county Extension agent or NRCS conservation planner can give a site-specific estimate.

  2. 2
    Find a rancher

    Local cattle producers, county Extension, or commercial brokers (Tillable, AcreTrader) all help match. Many leases are word-of-mouth via the local livestock association.

  3. 3
    Choose a structure

    Per-AUM (most flexible), per-acre flat (most predictable), or revenue-share on weight gain (rare). Most contracts run 1-5 years with renewal.

  4. 4
    Set ground rules

    Spell out stocking density, water responsibilities, fence maintenance, weed control, and entry rights for inspections.

FAQ — Cattle grazing lease in Texas

What's an AUM?

Animal-unit-month — the forage consumed by one mature cow with her calf in one month. Standard pricing unit for US grazing leases.

What rate per AUM should I charge?

BLM federal rates run ~$1.35/AUM (heavily subsidized). Private leases run $18-$45/AUM in the West, $20-$50 in the Plains, $18-$35 in the Southeast.

Do I need to provide water?

Negotiable. Tenant usually maintains existing water infrastructure (wells, troughs); landowner provides existing infrastructure. New wells/fencing are negotiated upfront.

Can I still hunt while leasing for grazing?

Yes — most grazing leases reserve hunting rights to the landowner, who can keep them or sublease as a separate hunting lease for $5-$60/ac/yr.

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