Beef Cattle Share Leases

Montana State University Extension

Type: PDF

Farm Table says:

Cattle share leases are not a very common arrangement, but pose benefits for both the owner and new operator.

This US article discusses cattle share lease arrangements.

The following advantages are outlined:

  • Cattle owner and operator share risks and profits
  • Useful way for new producers to develop a herd or expand without taking on large amounts of debt
  • Reduces the load for retiring farmers without divesting their herd

Some disadvantages are outlined:

  • Can be more complicated than a straight lease
  • Owner loses direct control of management decisions

A sample sharing agreement is walked through:

  • 300 mother cows, where all calves are sold at weaning and all breeding stock is purchased.
  • Interest rate and depreciation on cows is applied
  • Death loss is calculated
  • Interest rate and depreciation on bulls is applied
  • Opportunity cost and depreciation on buildings and machinery
  • Repairs and maintenance
Figure: Montana State University Extension
2016 - United States - Montana State University Extension
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