Beef Cow Share Lease Agreements

Cow-calf enterprises require large investments in capital, labor, and management. These capital investments in breeding livestock, facilities and equipment, feed, and other inputs can keep some individuals from being in cow-calf production. Capital investments are commonly shared among two or more people to reduce one person’s capital requirements. A cattle share lease is one way to reduce an operator’s capital needs. Typically, these leases provide the person caring for the cattle (operator) and the cow herd owner with a share of the revenue from the calf-crop sale in proportion to the expenses each person contributes. This publication discusses guidelines to consider when establishing a cattle share lease arrangement.