callmefence":2qb07xdv said:
Maybe his angle in keeping ownership is to let someone else maintain the herd while cattle are on a low swing
End the lease if there is a boom. Either take over or liquidate the herd.
Shrewd businessman maybe. As long as you have lease written properly it's still a good deal.
Why end the lease if there is a boom? Then the person doing the leasing is coming out way ahead because the calves would be worth more when are sold, and there is no increase in the lease costs. To me, I am of the thought that you are leasing the land and getting the income from any calves sold for free, which would cover the lease cost plus. Around here a minimum of $25 to as much as $40 per acre to rent decent pasture that has fences and water on it. We pay $1,000 a year for 25 acre pastures with all the same requirements; keep up fences, bushhog once a year.... with no cows thrown in to help pay for it. Sure wish it was across the road from us.... If the other farmer was doing it for 20 years and is only giving it up due to his health (cancer) then it had to have been working through the ups and downs.