Negotiating Cow Lease Arrangements

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Leasing cows can be a viable alternative to debt financing when you are starting or expanding a beef cow herd. This publication discusses four kinds of leasing options that ranchers may consider when they are preparing an equitable, long term lease. The book also has a sample lease and work sheet to help you. 26 pages.

Agdex 816-1

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Table of contents

Advantages and Disadvantages of Leasing

Defining an Equitable Lease

Risk and Returns

Types of Leasing Arrangements
  • Cash Lease
  • Fixed Number of Calves Lease
  • Percentage Share Lease
  • Flexible Share Lease
Designing a Lease Arrangement
  • What is the Best Lease Arrangement For Me?
  • Some Management Issues Leasing Cows
  • Calculating the Revenue Allocations
  • Using the Worksheet
    • Production Values
    • Formulas
    • Contributions
    • Revenue
    • Lease Payment Calculations
  • Appendix I Example Case Study
  • Appendix 2 Sample Cow Leasing Agreement
  • Appendix 3 Blank Cow Lease Worksheets
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This information published to the web on April 27, 2001.
Last Reviewed/Revised on February 24, 2015.