Loaner cattle arrangements

[arkcowman]

I have an experienced cattle mentor who is trying to assist me in a small startup operation. Originally I was going to purchase a few of his black angus but he has recently made me an alternate offer that I though very generous.

In stead of buying cattle he would loan me a few of his bred cows. For managing his cows he will split the calves with me this fall (he is a fall calf guy). He will also oversee my caretaking as I learn about proper cattle care.

Is this a common arrangement ?

My wife wants me to ask him to specify this agreement in writing in case there are problems (cow dies, cow sick, cow lost, etc). I didn't want to insult his generousity by asking him to put all this in writing. (but understand the importance)

I am recently retired. Have 56 acres of paid for land, already fenced, plus two ponds and nice barn. I am currently working on the quality of my grasses. (north mississippi)

Any thoughts ?

 

[Running Arrow Bill]

Caveat Emptor!

Get everything in writing...just good business. Too many things can go wrong in this day and age. Will also avoid bad feelings on both sides if something happens and it was covered in writing. Otherwise, it's "he said, she said" scenario...

Good luck!

 

[backhoeboogie]

Definately work it all out.

How many cows are we talking? With 10 bred cows you'd get 5 on the split and might luck out with - say 4 heifers. 20 bred cows might net you 8 if you are lucky. And so forth. Do you house these cows for an entire year?

You are not investing any nickels. You are essentially securing a free start - sort of. (the land cost you money) You are obtaining a bit of experience too, from someone who knows the ropes. ????

So if you could come out with say 10 heifers, then buy a bull that is safe for heifers and resale it later, you wouldn't have many nickels invested.

You are going to have to consider culling cows and such eventually to get a good herd. Some of the heifers you get may not be suitable.

If you have patience to wait a few years to build the herd, its not a bad deal at all. Just bear in mind you won't have any cows of your own dropping calves for about 2 years or so.

You could still buy a few good cows next year along with your bull.

Cattle prices are up right now too. If you are feeling froggy and ready to jump in, this is not the best of times. It may work out to be the best way you could start.

 

[arkcowman]

I was thinking of 8 to 10 bred cows. We had discussed not doing heifers so hopefully all of these girls have done this before.

When I was going to purchase from him he was going to let me select what I wanted. I hope I can still provide some input on which ones he sends over since I will be building my herd from this stock.

After further consideration I think I will see if we can get the details in writing before the cattle show up. As everyone says it could have the potential to mess up relationships and arrangements. We all often hear what we want to hear out of a given conversation.

As soon as it gets warm enough for the grass to kick in I'll get started. I'll keep everyone posted.