All lands granted by the United States to this state for the establishment and support of common schools and of educational, penal, or charitable institutions may be leased for pasturage and meadow purposes at public auction after notice as provided by this chapter. The lease may be for a period of not more than five years. Grant lands which have never been placed under cultivation by a contract purchaser, in the event such contract is canceled, may be leased for pasturage or meadow purposes for a period of not more than five years. Grant lands which have been placed under cultivation by a contract purchaser, in the event such contract is canceled, may be leased at the discretion and under the control of the board of university and school lands for other than pasturage and meadow purposes until the land is resold. All rents are payable annually in advance.