Why the objection to contracts?

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rogergreaves

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I have a neighbor who used to board horses but no longer does. His place is down the street from me, fenced and grows good grass. I have just a few cows. My neighbor asked me if my cows could come eat his grass. It seemed like a good deal for both of us, I just had some things to get done on them so I couldn't bring them down until I was finished. A couple of weeks. No money was mentioned at first but in those couple of weeks, his desire for a gate in a particular place came up and I offered to trade him a gate for the grazing. Another occasion, his wife mentioned how much they used to get when boarding horses, $150/mo. per head. I got the idea that she expected me to pay that rate which I'm not willing to do. So I asked for a contract.

The guy said he didn't have time to draw one up. I downloaded one from the internet and changed a few things to fit the situation and took it down there and we both signed it. It was very simple. My cows to his place on this date and removed when he says. I provide the water tank, and minerals. I can come in and tend them. They will move them from enclosure to enclosure as they see fit to manage the grass. I provide the gate when the cows get there. The wife called me the next day furious that I had made a contract for their land and "forced" her drunk husband to sign it. The phone connection was terrible so I drove down there to talk to her. She was more angry than before. The issue of her former boarding rate came up again. She tore up the contract and threw it at my feet. That was two years ago and the "f-ing" contract issue comes up almost every time the guy and I are at the same place drinking beer.

We're leasing a bull from another farm. Went over there, selected from their five and came up with a price. Asked them to forward their contract to us, well sign it and send it back with a check ASAP. Please put the stated value of the bull on the contract. This is their first year leasing bulls so they don't have a contract ready to go. No problem, we have a few weeks to get ready. She emails us and says she checked with another farm that we both know and they don't use contracts so she shouldn't have to.

What gives with this? Why the aversion to writing things down? I'm pretty new at this stuff. From my perspective, without it, in the grazing case, I would have "gifted" my little herd of animals to this other guy and he could have done as he pleased with them. Or, once there they could have billed me for anything they wanted for "boarding" and maybe held the animals until paid. In the bull leasing case, say the bull got out and the Sheriff shot him. What's my liability? If I bought him, he's worth about $2500. But if he dies in my care, what's he worth then, $25,000? It seems a simple written agreement works for both parties. What if I decided not to return the bull or invited every cow in the area over to be bred? I mean he's at my place, can't I sub-lease him? Well, that depends on the contract, right?

Is this normal in the cattle biz? This aversion to written agreements?
 
Reasons vary . Most of my cattle and haying is done on property owned by others. Currently that's five different handshake verbal agreements. All with older aged neighbors. No one seems to want a written contract. I can only figure they want to retain the right to remove me if desired. I guess it's a feeling of having control of the matter. The down side for them is I can't invest any more than a minimum on improvements knowing I have no security in the long haul.
As you mentioned, it can get stressful working without a contract. Had one inform me last summer they plan to timber their property and would like the cattle moved for the process. Only had about 20 head there so I sold them. Wood cutters hasn't shown so they tell me last week just to turn the cattle back in. I'm thinking what cattle? I'll have to do something as it's a nice place, it conveniently adjoins me and there are others wanting the land if I walk.
Good luck.
 
Never discuss business, religion or politics while drinking beer. (or any other liquor) I'd bale on this deal in a hurry.
 
I agree with you, in this day and the type of people you do business with a contract is needed, Google ( Casas Cattle ) who leases bulls , he has an agreement contract that covers all you mentioned.
I do not borrow equipment because of the legalities involved, if anything breaks or is damaged under law the borrower is responsible for repairs and that could cost thousands of dollars.
 
Contracts are only as good as the people who sign them. Around here a lot of contracts are written with smaller landowners who are looking to pay Agg rates on property taxes . They have to have a contract on file with the count assesor in order to qualify for the exemption.If they let it lapse it takes 3 yearsof continuous Agg use to get it back. So it's in their best interests to have a contract.

However..............a good example of how this goes bad is happening to me right now. I signed one of these with a lady last spring. The rent for the first two years was to be the rebuilding of her fence around approx 50 acres. It took my son and I close to 2 solids weeks of labor for two men to get it usable for cattle. At the time there was quite a bit of stockpiled forage as it hadn't been pastured for a couple of years. So when I turned out my cows they had some feed until the monsoon started and it really started to grow some grass. Keep in mind that under the best circumstances this place is good for 10 pairs for 6 weeks. Well guess what happened. Before I even got my cows turned out she turns in two horses and starts eating MY grass. Not only that but she kept them in there since then and at one point she was advertising for more horses to board.

Now we are getting to green grass again and there is NO stockpiled forage for my cows and the horses are still there. Chances are I won't be putting any cows in there again....and I will let the county assesor know that.
 
I believe in contracts. I have leased out pasture grazing and always supply a contract spelling out the details.
Cattle grazing prices are not even close to horse boarding prices, and either is the head ache! She should know that.
 
3waycross":1rif7qd5 said:
Cattle also don't pull grass out by the roots and ruin a pasture.
Exactly! They are also much more reactive and find stuff to get hurt on, then the owners sue you for it.
 
Brute 23":1i7u64de said:
You need to find different people to do business with. Putting some the terms on a contract is the easiest part of the whole deal.

You must have second sight if you think you can pick a rotten apple before it rots. Maybe you can tell me how I was supposed to know that her real agenda was to find someone to fix her fence so that she could screw them later.

That's the thing about experience....it's rarely free.
 
Your experiences are interesting. I'm in the very opposite position, I'm close to renting 100 acres of hay land because the current guy using it doesn't want a contract and abuses the owners trust. I told the lady when I first talked to her that the only way I would rent her land is if I had a contract spelling out exactly what each of our roles would be. She got really excited when I told her that and said how much she wanted the same thing. All it takes is getting burned once and you realize how important it is to have it in writing.
 
3waycross":3v8brr3b said:
Contracts are only as good as the people who sign them. Around here a lot of contracts are written with smaller landowners who are looking to pay Agg rates on property taxes . They have to have a contract on file with the count assesor in order to qualify for the exemption.If they let it lapse it takes 3 yearsof continuous Agg use to get it back. So it's in their best interests to have a contract.

However..............a good example of how this goes bad is happening to me right now. I signed one of these with a lady last spring. The rent for the first two years was to be the rebuilding of her fence around approx 50 acres. It took my son and I close to 2 solids weeks of labor for two men to get it usable for cattle. At the time there was quite a bit of stockpiled forage as it hadn't been pastured for a couple of years. So when I turned out my cows they had some feed until the monsoon started and it really started to grow some grass. Keep in mind that under the best circumstances this place is good for 10 pairs for 6 weeks. Well guess what happened. Before I even got my cows turned out she turns in two horses and starts eating MY grass. Not only that but she kept them in there since then and at one point she was advertising for more horses to board.

Now we are getting to green grass again and there is NO stockpiled forage for my cows and the horses are still there. Chances are I won't be putting any cows in there again....and I will let the county assesor know that.

Did your contract specify that you have exclusive grazing use of the leased 50 acres? If not, why not?
 
boondocks":19m8e37s said:
3waycross":19m8e37s said:
Contracts are only as good as the people who sign them. Around here a lot of contracts are written with smaller landowners who are looking to pay Agg rates on property taxes . They have to have a contract on file with the count assesor in order to qualify for the exemption.If they let it lapse it takes 3 yearsof continuous Agg use to get it back. So it's in their best interests to have a contract.

However..............a good example of how this goes bad is happening to me right now. I signed one of these with a lady last spring. The rent for the first two years was to be the rebuilding of her fence around approx 50 acres. It took my son and I close to 2 solids weeks of labor for two men to get it usable for cattle. At the time there was quite a bit of stockpiled forage as it hadn't been pastured for a couple of years. So when I turned out my cows they had some feed until the monsoon started and it really started to grow some grass. Keep in mind that under the best circumstances this place is good for 10 pairs for 6 weeks. Well guess what happened. Before I even got my cows turned out she turns in two horses and starts eating MY grass. Not only that but she kept them in there since then and at one point she was advertising for more horses to board.

Now we are getting to green grass again and there is NO stockpiled forage for my cows and the horses are still there. Chances are I won't be putting any cows in there again....and I will let the county assesor know that.

Did your contract specify that you have exclusive grazing use of the leased 50 acres? If not, why not?


You should send her a fencing bill.
 
AllForage":2jrg4t98 said:
boondocks":2jrg4t98 said:
3waycross":2jrg4t98 said:
Contracts are only as good as the people who sign them. Around here a lot of contracts are written with smaller landowners who are looking to pay Agg rates on property taxes . They have to have a contract on file with the count assesor in order to qualify for the exemption.If they let it lapse it takes 3 yearsof continuous Agg use to get it back. So it's in their best interests to have a contract.

However..............a good example of how this goes bad is happening to me right now. I signed one of these with a lady last spring. The rent for the first two years was to be the rebuilding of her fence around approx 50 acres. It took my son and I close to 2 solids weeks of labor for two men to get it usable for cattle. At the time there was quite a bit of stockpiled forage as it hadn't been pastured for a couple of years. So when I turned out my cows they had some feed until the monsoon started and it really started to grow some grass. Keep in mind that under the best circumstances this place is good for 10 pairs for 6 weeks. Well guess what happened. Before I even got my cows turned out she turns in two horses and starts eating MY grass. Not only that but she kept them in there since then and at one point she was advertising for more horses to board.

Now we are getting to green grass again and there is NO stockpiled forage for my cows and the horses are still there. Chances are I won't be putting any cows in there again....and I will let the county assesor know that.

Did your contract specify that you have exclusive grazing use of the leased 50 acres? If not, why not?


You should send her a fencing bill.

I agree, but she sounds like someone who would just rip it up and give you the finger unless you take her to court and what a PITA that would be to have to muddle through.

3way you should have done what my neighbor did when the exact same thing happened to him. He removed his cattle and took down his fence, that he built and paid for all of the materials, in the middle of the night (more like first light while they were still getting their beauty sleep) without telling them.
It was on a dead end road and the horses and donkeys didn't go very far or venture to a highway or anything but the land owner was extremely p#ssed about it and had to spend the next few weeks themselves putting up a fence. He didn't take down the new fence he built joining the other neighbors property though as he liked them and they offered to pay him for their half of the fence.

Ole Cliff was a heck of a nice guy and a WW2 war vet too, but I was glad that I stayed on his good side, bought my first GV bull from him.

I think I would have been so miffed at what she had done that I might have just tore down the fence with a loader or the skid steer. People are such aholes sometimes.
 
I think Vic has the right thought. The tax bill and her new reputation will hurt her for a lot longer than a couple thousand feet of fence.
 
Seems to me that the people that don't like contracts are the ones that don't like being bound to their word.

Bad stuff can still happen, but a contract can end up saving you from it being much worse. Know of a situation where a divorce took place. One party leased some land and took payment. The other "claimed" they knew nothing of it and sued the renter for trespass at 3 times the price of rent for the duration of the renter's use of the land.

Lawyers are expensive no matter how things turn out. I prefer to not need them, or need them for as little amount of time as possible.
 
3waycross":ztb3m6ka said:
Brute 23":ztb3m6ka said:
You need to find different people to do business with. Putting some the terms on a contract is the easiest part of the whole deal.

You must have second sight if you think you can pick a rotten apple before it rots. Maybe you can tell me how I was supposed to know that her real agenda was to find someone to fix her fence so that she could screw them later.

That's the thing about experience....it's rarely free.

Sorry 3Way... that wasn't aimed at you. We have all been burned. I leased 12ac a good coastal from my cousins a couple years ago. It was a great place to hold a couple heifers or cut hay. Gave her and her sister a couple hundred bucks each. 6mo later her husband calls and cusses me out on the phone saying to get my cattle off their land. The sister totally denied even getting money and making a lease. I told her what do you think the $200 check that says cattle lease for 12ac was for? Complete night mare.... end of the day I moved the heifers off and the husband does not show his face. Both girls' husbands cheat on them and they both rack up credit card debt he doesn't know about. They are made for each other.

Too many people do these deals because they look past all the red flags. When a guy has enough time to hang out at the bar but not draw up a lease... that's a flag.

A guy who I work for always says its really hard to go broke walking away from a deal.
 
LRTX1":1q06upx5 said:
I think Vic has the right thought. The tax bill and her new reputation will hurt her for a lot longer than a couple thousand feet of fence.

;-) Yep!

The difference in the tax rates are staggering. Time wounds all heels!

BTW I left out the really funny part. She is a former Playboy Bunny/Centerfold. The only thing she has left from her glory days are her implants the rest is completely depreciated out!.
 
3waycross":w80476em said:
LRTX1":w80476em said:
I think Vic has the right thought. The tax bill and her new reputation will hurt her for a lot longer than a couple thousand feet of fence.

;-) Yep!

The difference in the tax rates are staggering. Time wounds all heels!

BTW I left out the really funny part. She is a former Playboy Bunny/Centerfold. The only thing she has left from her glory days are her implants the rest is completely depreciated out!.
Sounds like you checked her our pretty thoroughly.
 
Naw.it's obvious from quite a distance! Very little chance I am taking anything out in trade there. She's packin enuf extra skin to make a nice set of luggage.
 

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