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Coffee Shop
Share cropping cattle. Is this a fair deal?
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<blockquote data-quote="WalnutCrest" data-source="post: 1419418" data-attributes="member: 21715"><p>Not going broke is the most important thing. </p><p></p><p>How will open cows be marketed and replaced, and on who's nickel?</p><p></p><p>How will dead cows be replaced and on who's nickel? </p><p></p><p>Who decides when a cow is sold? What if cows are open and you want to sell, but your guy wants to give them another chance? Or vise versa?</p><p></p><p>What if some heifers get retained? Who's heifers are those? </p><p></p><p>And a big one ... who decides what cows to buy to start? </p><p></p><p>...etc.</p><p></p><p>A suggestion ... you buy the cows and lease them to him for a fixed $ / head / day rate ... he covers feed, mineral, vet, transportation, etc ... and he gets all the calves. Open cows are sold and the money goes to you. Home raised heifers are retained by this guy to replace opens and death loss and they are his cattle.</p><p></p><p>Set the day rate so you make money regardless of the commodity market. </p><p></p><p>I'd also consider telling him that you get to pick 2-5 of the best bull calves to keep back as home raised bulls to replace the bought bulls so as to reduce your cost. If your selection criteria is good, the herd will get better and you'll save money.</p></blockquote><p></p>
[QUOTE="WalnutCrest, post: 1419418, member: 21715"] Not going broke is the most important thing. How will open cows be marketed and replaced, and on who's nickel? How will dead cows be replaced and on who's nickel? Who decides when a cow is sold? What if cows are open and you want to sell, but your guy wants to give them another chance? Or vise versa? What if some heifers get retained? Who's heifers are those? And a big one ... who decides what cows to buy to start? ...etc. A suggestion ... you buy the cows and lease them to him for a fixed $ / head / day rate ... he covers feed, mineral, vet, transportation, etc ... and he gets all the calves. Open cows are sold and the money goes to you. Home raised heifers are retained by this guy to replace opens and death loss and they are his cattle. Set the day rate so you make money regardless of the commodity market. I'd also consider telling him that you get to pick 2-5 of the best bull calves to keep back as home raised bulls to replace the bought bulls so as to reduce your cost. If your selection criteria is good, the herd will get better and you'll save money. [/QUOTE]
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Share cropping cattle. Is this a fair deal?
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