cash renting beef cows

[seyah]

I was wondering if there is any one who might of had any experince with renting bred comercial beef cows on a year round deal.

[rip]

I have not actually done any of it myself but was talking to a fellow just last week who rents his out. He rents them for $200/yr and the renter must replace 20% of the herd each year with young bred heifers of equal or better quality so that if he decides not to keep renting the owner gets back a young herd. The culls are sold and the renter gets the proceeds. All expenses are that of the renter and rent is paid on full amount of cows whether a calf is lost or not. The herd must also always remain at the same number regardless of death losses. If you want to know more I will ask the guy if he would mind talking to you and we will somehow get ypu together.

[jmillang]

There are many ways to lease a cow herd. You have mentioned the cash basis method which from my experience is the least common although they are out there. We typically see a calf crop share agreement. The share percentage is determined by who pays for what expenses and the rate of return that the cow owner wants on their investment. Alberta Agriculture has a priced publication titled Negotiating cow lease agreements. Its available at district offices or you can order it from the provincial publications office.

here is an URL that has a table of contents http://www.agric.gov.ab.ca/agdex/000/pp8161tc.html

[vickie]

I was browsing the other day and came accross this url in the CMS.com web site and I thought it might be of some assistance to you. I hope it is and good luck on your search for information. This is entitled "Leasing Beef Cows for a Profit" http://ndsuext.nodak.edu/extpubs/agecon/farmmgt/ec1086w.htm This was a collaborative report by Harlan Hughes, Dwight Aakre and LaDon Johnson

[dbluck]

For what it's worth here is the deal I have. The cows were all mature when i got them. I meet all expenses incurred. At weaning 60% of the calves are mine, 40% are the owners. Culled cows belong to the owner (and are not being replaced).

[lorne]

Here is the agreement that I had last time I rented cows.
The owner got paid in cash during the last week of October at a rate of average selling price for steers at a rate of 125 per cow per year. I was responsible for any losses after the first winter, during the first winter we shared the cow losses 50/50. The owner got paid for all of the cows and if a calf died that was my responsibility. This was an on going agreement and could be cancelled on the anniversery date by eithor party, and if the owner wanted to check the cows at any time he could do so. If the owner was not satisfied with the care prvided he could cancell the agreement and take his cows home, but there had to be proof that I was not providing proper care to the cows, not just because he wanted to have the cows again.

This arrangement worked good for both of us.

I also have rented cows on a cow calf share agreement. I gave 1/3 of he calves to the owner, but I delivered the calves to the local auction. In this agreement I rented pure bred cows, and I kept the heffier calves to build up my herd. In this agreement I was not responsible to replace a cow if she died.

A fried leases his cows out on a cash basis. I do not know his present agreement but 3 years ago he got $200 per cow, and the renter was responsible everything. What he did was find a renter and went with the renter to the sale and let the renter pick the cows that he wanted rent and bought them. He did this so that the renter got what he wanted and on the condition that this was a long term agreement. It seemed to work out for him.

Hope this is of interest to you.