Jim Krantz, a kuhkalbfeld specialist at South Dakota State University, says these are 11 things that should be a cow and stock leasing contract. Many other combinations are possible and can be evaluated by simply adding up the estimated cost of each party`s contribution and converting it into a percentage of the total. Typical budget costs as included in the Ag Decision Maker Information File B1-21 Livestock Enterprise Budgets can be used to formulate a new agreement. However, actual costs should, where possible, be replaced by typical costs. If calves are transported at a higher weight, additional costs for food, health and work should be included. With so much money invested in the property, my father says he wasn`t ready to accept extra debts, so he and my grandfather made a deal for him to take cows on shares. My grandfather was the main owner and my father would provide work and food. The agreement worked well for several years, until my grandfather agreed to leave at the end of the contract, and my father was willing to pay for the full ownership. 10. Pork feed: feed calves are a common practice for some, while other cattle producers prefer to abandon this management system. This decision should also be part of the agreement. When used, creeping expenses are generally divided into the same percentage as the value of the calf.

If there is a good working relationship between the parties, all management decisions can be made by mutual agreement. The person who provides the work is generally responsible for day-to-day management decisions regarding feeding, breeding and treating health problems. However, more important decisions, such as the purchase or sale of livestock or the definition of general feeding, livestock and public health programs, should be discussed in due course. Some goals related to management areas such as calf percentage and weaning weights can be set in advance. The nature of the registrations required to revise these objectives and the system to be used should also be discussed and agreed upon. Berger writes: “Cattle owners and operators who have not cooperated so far should clearly define the objectives of the share lease. A one-year lease can be considered, as it allows the terms of the lease to be reviewed each year, if necessary, or to dissolve the share rental ratio. A multi-year lease also has its advantages, so a relationship can develop between the two parties.

All agreements should be concluded in writing and agreed upon by both parties. Also make sure that all expenses are covered and that emergencies or natural disasters are discussed. It may also be a good idea to have the agreements audited by a lawyer or financial advisor before the parties sign the document to ensure that nothing is missing. The agreements should be reviewed annually. 9. Health programmes: health expectations for herds, cows and calves should also be set out in the agreement.