Rental Rates for Agricultural Dispositions
- Grazing Leases
- Forest Grazing Licenses/Grazing Permits
- Farm Development Leases
- Cultivation Permits
- Hay Permits
- Head Tax Permits
- Application/Renewal Fees
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Through leases, permits and licenses, a variety of agricultural activities can be accommodated on public lands in Alberta. These dispositions have several different rental structures and lengths of tenure.
Grazing Leases
(generally 10-year term, renewable)The grazing rental rates are based on the carrying capacity of the land, which is determined by the number of Animal Unit Months (AUM) that a specific parcel provides. The minimum rental rate for a grazing lease is $50. In addition to the rental, the leaseholder pays municipal taxes.
An AUM is the amount of forage required by one Animal Unit (AU) for one month. This is approximately 1,000 pounds of forage dry matter.
An AU is one mature cow weighing approximately 1,000 pounds, that is either dry (not nursing) or has a calf up to six months of age.
The grazing lease rate is set in part using the following formula:
Rent per AUM =
(300 lb. wt. gain/AU/yr.) x (average lvstk. $/lb.) x Zonal% ____________________________________________________________
12 months/year
The livestock price is the average price of cattle, excluding slaughter grades, on the Calgary market for June to November of the previous year. The zonal per cent is a type of royalty. This is 10% in Zone A (southern Alberta), 81/3% in Zone B (central Alberta) and 5% in Zone C (northern Alberta).
Grazing rates, which are set annually, have been frozen at the 1993 level for the past four years. The current rental rates per AUM are $2.79 in Zone A (southern Alberta), $2.32 in Zone B (central Alberta) and $1.39 in Zone C (northern Alberta). The rates will remain at this level until the Agricultural Lease Review has been completed.
Forest Grazing Licenses/Grazing Permits
(Up to 10-year term, not renewable/one-year term, renewable)
The rental rates for licenses and permits are the same as grazing leases and the permit or license holder must pay for municipal taxes. However, if the forest grazing license is issued within an existing Forest Management Agreement Area, municipal taxes are not payable by the license holder.
Farm Development Leases
(up to 10 years, renewable)
The rates for farm development leases are based on the market rental rate for the cultivated area, taking into consideration the municipal taxes paid by the leaseholder on the parcel. The market rates vary throughout the province because they are based on the rental charged in the private sector. The uncultivated portion is rented based on Grazing Lease rental rates. The disposition rental rate is reviewed every five years. If this results in a rental increase greater than 50 per cent, the increase is phased in over the next five years.
Any government-owned improvements are rented at six per cent of their value per year. The leaseholder does not pay market rental on new cultivation for the first five years if he creates the cultivation.
Cultivation Permits
(one or two-year term, renewable)
The rental rate for cultivation permits is $6 per cultivated acre and $1.20 per uncultivated acre. There is no charge for land in summer fallow. The permit holder is responsible for paying the municipal taxes on the parcel.
Hay Permits
(annual)
The rates are $7.50 per ton for native hay and $15 per ton for tame hay. Municipal taxes are not levied on these parcels.
Head Tax Permits
(annual)
On provincial grazing reserves where livestock management has not been privatized, the fees per AUM in Zone A are $13.60 for dryland pasture, $26.00 for irrigated pasture and $32.00 for the Hays Grazing Reserve. Zone B has a rate of $13.50 per AUM and the rate for Zone C is $13.85 per AUM. Charges for livestock management, improvements and maintenance are included in these fees.
Where livestock management has been privatized, the patron association for the reserve pays a fee ranging from $2.49 to $4.22 per AUM. This covers the forage use and rental calculated at 2 per cent of the original cost to construct the fixed assets. Members pay an additional amount per AUM to the association. This is used to cover livestock management, maintenance and replacement of improvements.
Outside provincial grazing reserves, the fees per AUM are $3.50 in Zone A, $3.00 in Zone B and $2.05 in Zone C. The municipality receives a grant from the provincial government in lieu of taxes for all head tax permits and provincial grazing reserves.
Application/Renewal Fees
A fee is charged for new applications and for renewals.
This information is intended for convenience of reference only. The current Public Lands Act and regulations should be consulted for all purposes of interpreting and applying the law.
For updated information
Contact any of the offices below:
Alberta Sustainable Resource Development
Lands Division
Land Dispositions Branch
South Tower, Petroleum Plaza
9915 - 108 Street NW
Edmonton, Alberta T5K 2G8
Telephone: (780) 427 3464
Rangeland Management Branch
South Tower, Petroleum Plaza
9920 - 108 Street NW
Edmonton, Alberta T5K 2M4
Telephone: (780) 427 3595
Forestry Division
Forest Management Branch
9920 - 108 Street NW
Edmonton, Alberta T5K 2M4
Telephone: (780) 422 4590
OR call the Lands Division office in your area.
