Beef Cow Share Agreement
For more information about Share Leases and models, see Ag Lease 101. Cattle herds have always been a popular business for small and medium-sized farms in the Midwest. Since cattle ownership represents a relatively high cost of capital, many cow and calf farms are run jointly by two or more people. One party may possess the end of the breeding, while another provides the work to take care of it. Facilities, feed, healthcare costs and other resources can be shared in different ways – there are no strict and quick rules to follow. Table 1 presents the data on the cost of production of cow herds calculated for this analysis of co-location leasing. The cost data in Table 1 are per cow. I suggested to my study director that a lease of 30 to 70 cows would be my general recommendation for a typical situation where one partner owns the cows and another partner provides the feed, grass and work to the cow herd. This indicates that 30% of the calf harvest would go to the owner of the cows and 70% of the calf harvest to the working farmer.
Written agreements help to avoid subsequent disagreements. They also offer registration for tax advisors and heirs. A cow and calf operation represents a significant investment in livestock, grazing and handling facilities. A sharing agreement should be established for at least five years or more. However, the details can be checked annually. 8. Death verification: procedures used by insurance companies to verify that the loss of cow death can be taken care of and included in the cow share agreement. This usually includes the services of a licensed veterinarian, with the costs normally assigned to the owner of the cow. When drought begins before stopping, the owner of the cow must pay daily feeding and labor costs until the stop.
Both parties can then enter into an annual share lease agreement. . . .