Pdfangus type partnerships

[The Bachelor]

I saw this on another thread and really wanted to ask some questions about it because my brother and I were thinking of doing something like this.

I own 100 acres and he has 5 adjoining. He's an OTR trucker and gets home on weekends. What we're talking about doing is having two seperate herds (his and mine) breaking costs down per percentage of cattle we average each year (if I had 45 cattle and he had 5 we'd go 90%/10% on expenses). They'd both share the same pasture land. He'd also help hay and take care of em if I were gone. Same with me.

Anyone see potential problems with this we should get straight beforehand?

Thanks,

Brad

 

[bigbull338]

heres some ideas that might help you.figure up how much hay it takes to get each cow through the winter.then add it up.an charge your brother for the hay.if you feed much grain.figure your lbs pre day.say 3lbs a day,thats 90lbs a month pre cow.so charge for a months feed.same for the salt an minerals.an doing it that way is fair an honest.

 

[grannysoo]

How well do you and brother get along?
Do you totally trust each other?
Will he do his % of the work?
Will you do your % of the work without whining?

I like the % idea but it all gets down to the relationship that you have with your brother. If it's good enough to stand being in business together, it can be a great thing.

But.... never let a cow or anything else come between family.

 

[Angus In Texas]

What do you mean by pdfangus type partnerships?

 

[The Bachelor]

What do you mean by pdfangus type partnerships?

I was over on this thread and saw what he wrote and didn't want to hijack the thinghttp://cattletoday.com/forum/viewtopic.php?p=471468#471468

Thanks for the suggestions so far....

 

[forageconverter]

Maybe or maybe not a potential problem:

If you have 100 acres out of 105, you are already providing 95% of the land. The biggest expense in raising a cow is the feed, which is usually produced from the land. Seems to me, rather than paying 90%, you would be paying 95% of the biggest part of the total expenses?

Unless he was going to compensate you for your land in one way or another; maybe 48 or 47 cows for yourself, and two or three for your brother would be more fair?

 

[Beef11]

The rule i use is partnerships stand strong as long as both parties are are looking out for their partner. When you start looking out for yourself you both have a mess.

I think it can be done. I'm not sure if I'm going to do it.

 

[FarmGirl10]

Me and my brother do something really similar to that. And its always worked out really well for us(we have a 50/50 split on everything). Unless one of us thought that the vet needed called and the other didn't, that can cause problems. If the other doesn't want the vet called and you call the vet and no problem actually exists, you pay the bill. But if there is a problem, the bill is split. Thats the way that we do it, but you might wanna settle that in your won way. Also, if its a calf/cow operation, when the calves get weaned...how are you gonna know what ones are yours and which ones are your brothers? Just a few things that you need to consider.

 

[rkm]

My brother and I have farmed as a partnership for 45 years. Sometimes a blessing sometimes a curse. You have to give and take and not worry about splitting every penny or you will go bananas. We have been lucky, very few family partnerships survive. Even if you and your brother have a good relationship and trust each other you still have a big hurdle, its called wives. :shock: :shock: Good luck!

 

[john250]

I saw this on another thread and really wanted to ask some questions about it because my brother and I were thinking of doing something like this.

I own 100 acres and he has 5 adjoining. He's an OTR trucker and gets home on weekends. What we're talking about doing is having two seperate herds (his and mine) breaking costs down per percentage of cattle we average each year (if I had 45 cattle and he had 5 we'd go 90%/10% on expenses). They'd both share the same pasture land. He'd also help hay and take care of em if I were gone. Same with me.

Anyone see potential problems with this we should get straight beforehand?

Thanks,

Brad

Your brother could probably do better investing that money.

If your brother wants the pleasure of being involved with cattle, charge him a fee for feeding, breeding, and managing his 5 head and rent his 5 acres at some going rate. That way it is all "arms length".

 

[pdfangus]

Well I never though i would be a thread,

But my first response has already been posted. How well do you and your brother get along.

My partner came to me with the propostion low those many years ago.

One thing we do is we know whose cow is whose, they are registered. so we know how many calves we have.

when we sell calves we divide the money by the calves and each gets our share. we figure the knots and the good ones will all average out in the end and if i ma doing my job the number of knots will go away and that has happened.

when we sell bulls at the bull test we divide the income by the number of bulls. the only influence I have is I decide which ones come home. We keep a young bull most years to do cleanup after AI.

Every now and then we will ask one another if you are happy with the way things are going. If not we talk it out but most times we just say yeah and talk a bit about direction.

I did turn down other offers of joint enterprise in my career cause I knew in my soul that the personalities would have different expectations. this one works for us because we keep it simple and communicate. we trust each other.