The formula to calculate Pasture Rent is:
\[ Rp = A \cdot H \cdot Q \]
Where:
Pasture rent is the cost associated with grazing animals on a pasture, calculated based on the number of animal units, the price of hay per ton, and the quality of the pasture.
Let's consider an example:
Using the formula to calculate Pasture Rent:
\[ Rp = 50 \times 150 \times 0.8 = 6000 \, \text{\$/AUM} \]
This demonstrates that with 50 animal units, a hay price of $150 per ton, and a pasture quality factor of 0.8, the pasture rent would be $6000 per AUM.
