Posted by in-too-deep on October 20, 2014 at 07:41:20 from (64.235.94.33):
Morning All,
Have a friend and neighbor who has approached my wife and I about leasing us some of his cows. He's looking to retire from cattle in the next couple years, but doesn't just want to sell them flat out and he wants to see us grow our herd. Basically, the terms go like this: We choose the cows (maybe 15 or so bred females) We feed them, care for them, vet bills, chores, fence, pasture, the whole thing, just like they belonged to us. Come time to sell the calves, he would receive 1/3 of the proceeds and we would keep 2/3. Terms would then be re-negotiated after 12 months. Don't know how an actual purchase would go, but this is more of a rental kinda thing. We pay 1/3 of the calf crop for the use of the cows 12 months at a time. Right now is a poor time to buy cows, because they're so high-priced. On the other hand, 500 lb calves are topping $3, so it's a good time to expand the herd. Leasing might work?
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