lease reg. shorthorn cows

[RyanChandler]

I have the opportunity to lease about 40 reg shorthorn cows.  What are some different terms people lease cattle under? Do you generally pay an upfront price per head or is their any contigency of the calf crop? Thanks!

 

[JTM]

I honestly haven't heard of this happening. It would seem really hard to be profitable leasing cows if you were unable to keep 100% of the income. If you have land sitting unused then maybe 80/20 on the calf crop or something? It just seems like too high a risk of a deal for me to attempt.

 

[RyanChandler]

I honestly haven't heard of this happening. It would seem really hard to be profitable leasing cows if you were unable to keep 100% of the income. If you have land sitting unused then maybe 80/20 on the calf crop or something? It just seems like too high a risk of a deal for me to attempt.

Maybe I worded it wrong, but I was trying to ask how those that have leased cows have done it?  I know Jungles leased some registered shorthorn cows from Rocker Bros a few years back- Im just looking for the common terms people lease cattle under? 

 

[kiblercattle]

I have a lease deal on some angus cows I pay 100/hd/yr keep all the bulls and 75% of the heifers. The owner keeps 25% of heifers and I take 25% of the cows to either keep for myself or cull.

 

[Okotoks]

I think it would depend on the cows you get to lease. It gives you a good opportunity to get genetics you might want without the capital costs. Most of the deals I know of up here are 2/3 calves go to the person leasing.

 

[uluru]

I have seen some recent deals in Cda at 75/25%
Owner owns the cows and leases them to the operator.
The operator pays all expenses and keeps 75% of the value of the offspring
The owner gets 25% of the value of the offspring
At disposal of the cows the owner gets all the proceeds.

 

[justintime]

There are about as many lease agreements out there as there are leases.  The main thing to remember when going into a lease agreement as either the leaser or the leasee, is that it has to benefit both parties. If either party is not happy, it will not work. The leasee has to realize that the leasor will expect his cows to be managed properly. Make sure you take the time to put each persons responsibilities in writing and have it signed by both parties. Include in the lease agreement when or how the calves will be split and also include how the lease can be terminated by either party. There should be a way for either person to terminate the lease if they are not happy with it.

I leased a herd of 25 Charolais cows from my neighbors and the lease ran for 25 years. By the time I terminated the lease, I had accumulated a herd of over 100 breeding age Charolais cows myself. I went into this lease originally because there was 1000 acres of pasture an 300 acres of hay land included in the lease. It worked great for both parties. Our agreement was a 2/3 to 1/3 split, with me as the leasor getting 2/3. We had an agreement in the lease that allowed the cow owners to replace the oriiginal 25 cows with their share of the heifer calves and they then paid a maintenance fee to me until they came into production. I also could purchase their share of the heifers and/ or bulls are fair market value at weaning if I wanted to, and I did this quite often, which allowed me to build my herd numbers faster. I supplied the bulls and paidd all expenses up until weaning. If calves were sold after weaning in purebred sales, we split the marketing and sale costs the same way we split the calves.  This lease worked for us, with few problems but I have to say that I have probably seen more leases end very eary because one of the two parties decided to get greedy.