Page 25 - MWC 3-9-2023s

consider adding guidelines Option 1: The Midwest Cattleman · March 9, 2023 · P25
to the lease outlining accept- Assign a value based on choose to adjust this price
able weight or body condition breeding success with an arti- based on bull age knowing Leasing Bulls?
loss, so that the nutritional ficial insemination (AI) cost as that a yearling or two-year- Things to
demand post-breeding season the base. If a producer was to old will cover fewer cows than
can be kept in check. To fair- use AI rather than the leased a mature bull. consider when
ly evaluate, collect a delivery bull, they could realistically Option 3: writing the
and return weight. expect a 70% conception rate Determine the daily cost
Taking pictures, videos or with a $35 semen cost/cow. for a bull standing idle. Re- lease
having a third-party evalu- Assuming the leased bull will gardless of where the bull is By Cari Rincker
ation at the start and con- exceed a 70% conception rate, housed in the off-season, he
clusion of the lease period one might value the bull’s ser- costs money to feed, requires Bulls are expensive to buy
can help document physical vices at $50/cow ($35/70%). time to do chores, and war- and they’re expensive to keep.
changes and help avoid con- This value scenario is like- rants a yardage charge for They work three months of
flict. Determine the lease ly reserved for bulls sourced facility and fence upkeep. As- the year, then spend the rest
value. Finally, a lease agree- from a reputable breeder that suming the feed bill is $1.85/ of the time lying around,
ment cannot be complete are backed by genomic test- day, yardage (excluding labor) tearing things up and eating
without assigning a fair value ing, above average health pro- is costing $0.35/day, and labor expensive feed. And those are
to the bull’s service provided tocols, and highly sought-af- is $1/day, he is costing $3.20/ just a few reasons why a cat-
and outlining the terms of ter genetics. day to stay on-farm. For a 90- tleman may choose to lease a
payment. Like any livestock Option 2: day lease, that’s $288 total or bull. Oftentimes, these trans-
lease, no two agreements are Consider the value of the about $12/cow if covering 25 actions are done on a hand-
alike and vary based on an op- bull as a yearling and his cows. Keep in mind that this shake; however, getting the
eration’s goals, resources, and breeding life expectancy. value approach is simply cov- terms of the lease in writing
information available, and ex- Most bulls remain in the herd ering the maintenance cost of can protect both parties, help
pectations. Although not the for less than five breeding the bull, so should be adjust- articulate a clear agreement,
only methods, here are a few seasons, depending primar- ed to reflect premiums based and provide a roadmap for re-
approaches to determining ily on if heifers are retained on genetic merit, guarantees solving disputes to preserve
the value of a lease. and other farm goals. So, if of the lease, and any addition- a business relationship. Here
Remember there may be a bull is valued at $4,000 as al feed input and health pro- are some tips on what to in-
value in adjusting based on a yearling and is expected to tocols to get him ready for the clude in a bull lease agree-
the number of cows to be ser- go through four breeding sea- next breeding season. ment:
viced as well as added services sons, the owner may charge
and guarantees provided. 25% of yearling value per Iowa State University
year or $1,000. Owners may continued from page 26