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Leasing cows

Hay Feeder

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What are some ways that people lease bred cows to calve next year after the 2011 calves are weaned.
 

Northern Rancher

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Ty has some cash leased from me-as cows are culled I get the cull cow revenue but he gets the entire calf crop. You set the value of the cows and determine what % of their value is fair. I made the deal with him that we'd spend the lease money on improvements to the ranch.
 

RSL

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Some do percentage, some do straight cash. If you are leasing out, remember you are a bank, and you need to make sure you get the right customer. If you are leasing in, make sure you have done your math.
 

Northern Rancher

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When I checked on Ty his dam got rave reviews-not so good on his sire. I'd never inflict a calf share deal on a close relative.
 

littlejoe

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Northern Rancher said:
When I checked on Ty his dam got rave reviews-not so good on his sire. I'd never inflict a calf share deal on a close relative.

I dunno---share deal kinda lets crop land/cow owner share the risk when prices flucuate.

One neighbor put a lot of thought into his contract--he was the cow owner.

Some terms I remember:

Cows furnished were 4-10 yoa.

2% death loss accepable on the cows.

Shares were figured on 95% calf crop. If the guy running them had a wreck, that was his problem.

Cow deal started--and ended--nov 1.

Cow owner furnished the bulls.

All calves were cashed out--if the guy running them wanted to keep some heifers, he hadda 'buy' them back, after they'd done the numbers.

In case of disagreement, each party picked a guy, the two guys picked would pick a 3rd, by mutual agreement.

I think the cow owner's brand was put on all calves.

(I would of never went for this---when I took my father in laws cows on shares, I branded the steers with his brand, to cover him---and put mine on the heifers--)

I think the neighbor got 40%--that was too rich for me, I have done 70/30. And avg yrs, 70/30, the guy running them don't make much. I figured it as a way to build female numbers, w/o going to the bank.
 

Faster horses

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I've never seen one work out either. But cattle prices weren't what
they are today. Used to be there wasn't enough money in cows
for one person, let alone two. I think borrowing the money is
better than sharing. But that's just my opinion.

We were only in one share deal and that didn't work.
 

tenbach79

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Me and dad looked at doing a lease deal on some cattle this year also. When we sat down and did some figures it really turned out not to be that good of a deal. But that was our case it probably might work in your area. We lost some pasture lease this year so it wouldn't have worked out anyway.
 

Hay Feeder

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Tks for all the replys mine are reg Angus (schaff sired) but gettin booted out of the pastures from florida cow traders (vets family) for address changers in Novemeber
different twist than the west
 

MO_cows

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Seems like some equitable deals could be worked out where folks in the drought country could lease out their cows to where there is grass and not have to sell them and start over, if they like where their genetics are at.
 

Ben H

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MO_cows said:
Seems like some equitable deals could be worked out where folks in the drought country could lease out their cows to where there is grass and not have to sell them and start over, if they like where their genetics are at.

Long before my time there were a lot of cattle moved up here due to droughts, I think they came in on rail. There is a lot of land here that is growing back up into brush. A few dry spots that have missed the showers, but we're doing pretty good.

The downside is the breakup of the farmland, especially in my area. Hay costs are relatively high, probably $100-$150/ton. Winters can be wet, bad mud season. Typically a great grazing season though.
 

3words

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Dad and i had a cow lease deal,when i first got into cattle.It worked out well for both of us,he was able to phase into retirement and that was the break i needed to make my cow herd dream a reality.Two things made it work,first the 2 people in the agreement have to be able to trust each other,secondly the person leasing the cattle can't be lazy,or things can start to go bad quickly.
 

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