Cash cow lease

[rem_243]

Anyone straight cash leasing cows? Was thinking about cash leasing cows from a family member in order to phase them out. I would cash rent all there land, and The cow owner would not provide replacements and there would be a predetermined cull rate. Then I would start filling in with my own cows to replace the culls.

 

[Denny]

75% to you 25% to them they keep the cull money.

 

[Mike]

Denny, 75% of the actual calf sold price?

 

[Denny]

Denny, 75% of the actual calf sold price?

75% of calves are yours 25% theirs easiest way we did it was sell all the calves and I'd write a check for 25% we did this 2 years and the cows all calved and raised calves those 2 years it was only 30 head. I don't know how death loss would be treated as we didn't cross that bridge.