Leasing Cattle

[nkotb]

We are looking into leasing some show cattle and had a few questions.  What has everyone elses experience been with this, what were the lease terms, how did you handle registrations, etc.  Thanks in advance for any replies.

 

[M Bar]

It all depends on what your goals are and what the goals of your partner is.  If you both want the same thing, WRITE IT DOWN.  Don't take anything for granted.  Partnerships only work when each partner knows his/her role.  There are many ways to lease cows.  I would clarify the following:

How many cows and for how long.
What the percentage of calf income each party gets.
Who pays for all incidentals (registrations, vaccinations, treating sick ones)
What to do on death loss, who is ultimately responsible regardless of a dead calf backwards or a cow that fell on the ice and broke her back, or neglegence on either party.
Breeding/Flushing decisions
Who get the eggs/pregnancies/splits on calves.
If, the lease is terminated, how is it handled to compensate both parties.
buy back options on calves, cows, bulls, embryos, pregnancies.


It is amazing how many freindships have been lost over leases on animals.  I won't go into the bad stories, as there are plenty.  Just make sure you both have a clear understanding of what is the expectation of each person involved PRIOR to the endeavor.  If you need more, I am sure others will chime in.

 

[Jill]

I think he is talking about the rent a kid program for show cattle.

 

[Show Heifer]

It would be cheaper to rent the kids to the owner of the show cattle! 

 

[nkotb]

Not looking into the rent-a-kid, just have a family friend who is getting out of the cattle business but is wanting to keep some cows, and we have extra pasture and are looking to get into the show cattle business.

 

[justintime]

I agree with M Bar totally. Try to keep it simple, yet make sure there are no gray areas. I prefer leases that give the lessee total breeding decisions and I think the lessee should be responsible for all the day to day incident costs that happen. Costs at shows and sales are different and should be discussed and an agreement reaches before any cows are moved anywhere. Flushing is another of these areas. I also agree with M Bar, in that an agreement MUST be written and signed by both parties. DO NOT GET GREEDY, but KEEP THE AGREEMENT FAIR to both parties. If you think the lessor is wanting too much, walk away, if he will not change his mind. Leases  can work great if everyone knows the rules but they can lead to pure HELL if one of the parties thinks he is getting ripped off. AND, maybe one of the most important things..... The people involved are probably more important than the cattle involved. If the guy you are leasing from has a reputation of being a jerk, you may be wishing you had never heard of his cattle, and picked bottles out of the ditch to make a little extra income. Just remember, if it doesn't work for both parties, it does not work for either party.

One last thing... while the lessee is in charge of managing the cow herd leased, I would suggest that you try to maintain the cattle so that their body condition is as good or better than the lessor did. The lessor can give you some big problems if he thinks you are not caring for his cows properly. A few extra dollars to keep the cattle in good working condition usually pays dividends to you and to the lessor. It is something like being married.... if your partner is happy, there is a better chance of you being happy.

 

[uluru]

Boarding or leasing
Well said Grant.
I can talk from experience on this one.