Cow lease

[flyingS]

Does anyone have cows on lease or leased out? If so do you mind sharing some insight into your agreement. We are going to lease some cows. Not sure how to handle death loss on both cows and calves. All cows are going to be young and running age, owner will replace or increase numbers as we desire. A large majority of the cows will be heifers, should there be compensation for the lighter calf? All thoughts are appreciated.

 

[Angus 62]

There was a good article in last weeks Beef Cow-Calf Weekly on cow leasing. Might have to subscribe then find it in the archives.

Basically what it said and from my experience was that up to a certain percentage both stood the loss. Beyond that the person leasing the cows stands the loss. Normally lots of people figure a 20% replacement with heifers. Perhaps something could be negotiated in the lease because of the extra labor and loss of weaning weight.

 

[Triangle Bar]

http://beefmagazine.com/blog/3-steps-negotiating-great-cow-lease

 

[Red Roan]

Read a good article in Working Ranch of a young man in western Wyoming that was leasing cows and had a pretty interesting ideas on the topic. Basically he was allowing the owner to take the top 25% of the steers and a certain percentage of the heifers with him retaining the rest. He was figuring all of this on him needing a certain ROI considering he was leasing the pastures as well. Very outside the box thinking and encouraging.

 

[mn]

on our lease its a cash lease, just like renting land all expenses are on us. we pay lease when we sell calves. can keep anything for ourselves if we want, meaning hfs for our own herd. we farm also, so rent can be paid out of crop sales. like I said we could keep any amount back, as long as he gets his rent. as far as death loss on cows, if its our fault, we replace, otherwise owner stands it. based off of 100 cows. pay on cows bred,opens go to town. owner replaces to try to keep it around 100.