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General rule for livestock lease
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littlejo
Posted 11/28/2023 18:46 (#10501158 - in reply to #10498064)
Subject: RE: Been wondering what fair in deal like this


Big Sky Country
Russ In Idaho - 11/26/2023 17:45

So owner owns 100% of cows, I have no desire to own them. I've provided 100% feed, labor, vet and trucking. I've also fed and bred their replacements, also provided bulls.

You add up costs you can justify 50% of calf check almost without counting your labor. Also their calf is better with selling them on our contracts, they wouldn't get that kind of money without us. I also don't need to fill contracts. Just been favor for them, however times are changing, need to do something else.

Preference is to tell them to take them back, however need to keep peace in family, also I own all facilities so it's not a deal I need anything from them.



I’ve been on both sides. Share deal, guy running them providing everything—-I’d want 70%—and not a lot of gravy in that.
Some deals quite detailed—-cows 3-10 yrs old, 2% death loss on cows, per yr. 5% death loss on calves. 3 yr old replacements furnished.
Disagreement goes to arbitration—-each side picks a guy, them 2 guys pick a 3rd.

All calves sold—-$ easy to divide—-you want to keep some, buy them.

If I’m running them—-calves get my brand. Nov 1 is good date here to start deal, end deal. I was done with one, kept them after nov1 till guy found new home—-charged fair value for feed, nothing for labor, any death loss after nov 1–(wasn’t any) was on him.
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