What is the going rate for renting hay land. One must consider the condition and size of the field, and the potential yield per acre. That being said, local market conditions are the primary factor in determining values. Leasing hay land is not much different than a standard crop land cash rental arrangement. The landowner must be paid for the taxes and a return to the investment in land.
Taxes are a given.
Return to investment is a little more difficult to calculate. Generally, the earnings from land are similar to earnings from a stock that includes dividends plus a capital gain. The one distinguishing feature is the length of the contract. Many cash rental arrangements on crop land are usually done on a one year renewable basis. Leasing hay land should be a long term arrangement - at least five or six years to encompass the production horizon for hay.