leasing cowspasture

[waynesoder]

I have heard of a farmer who has leased cattle on a 50:50 share. The owner supplies the cows and the pasture. The farmer supplies all the
feed, fixes all fences and incurs all expenses [ mineral, salt, vaccination].
Is their any money to be made in such a lease. I'm interested in leasing
some cattle .I'm looking forward to reading all replies especially anybody
from southwestern Manitoba as that is where I'm from. thank you.

[jmillang]

There's money to be made by both parties at these prices. I have not tried to put together a lease agreement in the last year or so but a 50 50 is probably close to having fair returns to both parties. When calf prices decline then the rates move to 60 40 for the operator or when things were really bad I saw leases at 80 20 for the operator. You are right to consider who is paying what. Alberta Agriculture has a good publication on Negotiating Cowlease agreements, it is a publication that is for sale but is worth the $5.00. follow this link to the information page. http://www.agric.gov.ab.ca/agdex/000/pp8161tc.html

Sask Ag has a adapted the publication and added somethings and has a sample calculation page to help determine what the share should be. It's at this URL http://www.agr.gov.sk.ca/docs/livestock/beef/marketing/cowcalf1.asp

[danm]

The aggreement we have come up here is 150/cow for the owner & if the calf lives another $50. The operator supplies feed,vet,etc.We found this a bit cleaner since the owner can't say why didn't you sell them last month,etc also the owner gets a good return on just his ivestment.We are trying this year & see how it works out.We just figured what it cost to feed a cow a year on our farm (cash out of pocket) it was $175 so there should be some decent money in this but you should know what it is costing you to look after the animal before getting into any type of share agreement.Even the banker.
Dan
Ps I am from sw MB as well just north of Brandon

[rip]

I am from central AB and lease cows on a 60/40 basis with the owner supplying cows and bulls and I supply everything else. we are both comfortable with the agreement and with the prices the way they are there is good money to be made by both parties. Also be careful that you are not getting too old of a herd and that there are provisions in your contract for replacements and who covers deaths of cows.