Syndication occurs in almost every sale I attend any more, and it occurs when more than two people decide to partner on a bull or female. Some of these work well, and some become textbook disasters. I have been involved in both types. The first syndication I was ever in over 30 years ago, when 10 breeders decided to partner and buy a 10 year old bull named Four Point Major ( Massive Major) for $10,000. This syndicate actually worked as we made sure we had an agreement in writing that each partner signed and there was also a sizable semen bank that was dispersed amongst the owners right away. Each partner was entitled to use the bull naturally for a specific amount of time determined by a random draw. Although over 30 years have passed, I am still selling semen from this bull. I am now sold out and sold 70 vials this spring alone.This syndicate was probably one of the best $1000 I ever invested in the cattle industry. I also own numerous females in syndicates but it is just as important to pick your partners as it is to pick the animal to be syndicated. Also, make sure each partner gets equal rights, as sometimes the seller of the animal will become a partner in the syndicate then expect to call all the shots after the animal is sold. Some syndicates are no more than "executive petting rights", that is you fork out a big lump of money to become a memeber of an exclusive club that owns a cow or two..... and if you play your cards right, you may be allowed to pet her once in awhile, or maybe even get you picture taken with her. I have been in several syndiactes that have been very good to me, as they allowed me to share some risk and investment dollars with others.
If you have full trust in your partners, syndication can be a great way to add top line genetics to your herd, especially through ET and semen sales. Make sure you are very clear on what additional costs there will be and what you can expect in return.... and you have to do this before you agree to be a part of the syndicate.
I could write a few chapters about a few of the syndicates that I have been in, that did not work.... and almost every time, it didn't work simply because of some of the people who were involved. As my gerandfather used to say.... " the more I deal with people.... the better I like cows"
Syndication is not something you should agree to without careful consideration of what the deal actually is. If possible, hand pick your partners and set up the rules and regulations early.... not as the cow approaches the sale ring to sell.
