Farm Table says:
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