xhangn7 said:
I have bought as many as I can right now. But I still have pasture for 100 head and think I can make more on a share deal rather than just bring in summer cows.
How does a rent deal work?
Thanks for the input any more is appreciated.
Well hell ya, go for it---cows will be cheaper again, if you want to own them, buy them then.
Now---typically, one 'settles up' in the fall. And that's what works the best. If you get half for running till then, it's a bird nest on the ground.
I've been on both sides and done it several ways. Here's how one guy puts them out:
Replacements are 3 or older.
'Settling up' is done in cash, everything is 'sold'--- If you want the heifers, buy 'em after it's sorted out.
Share is figured on 95% calf crop. If it's better than that, the operator gets a bonus, less he digs in his pocket.
Cows are running age, owner provides bulls.
2% mortality accepted on the cows yrly---operator resp for loss over that.
70/30 split.
If arbitration needed, owner picks a guy, operator picks a guy, them two guys pick a guy, them 3 sort it out.
I like shares better than rent, on rent deals I did, it was about 30% of calf value---estimated---been a long time, about $150 then.
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