Page 42 - MWC 3-9-2023s

GRAZING SEASON The Midwest Cattleman · March 9, 2023 · P42
continued from page 40
LEASING BULLS?
serves and as the grass and got trampled up a little too continued from page 27
legumes grow, the plants much. This is a perfect can-
will start putting some en- didate to frost seed if there is •Confidentiality: This livestock community, some-
ergy into the roots and into still time. In this field, I may issue of confidentiality should times inadvertently. Part-
seed production. Later in the skip a rotation or two to let be discussed when negotiat- ners can legally bind other
spring, when seed heads have it recover and establish the ing a bull lease. If the par- partners. If it is not your in-
been produced, I encourage frost seeding. If grass gets ties haven’t already signed tent to form a partnership,
a clipping of the pastures to too far ahead of the new clo- a non-disclosure agreement, then make sure your lease
allow the plants, especially ver, I may graze the field for do they want the terms of the includes a simple clause
grass, to focus primarily on a very short time to set the bull lease to be confidential? clarifying that it is a lessor/
leaf production and building grass back a little and give Will any exceptions to this lessee relationship versus a
root reserves. the clover more sunlight to confidentiality apply and for partnership.
Fertilizing is an option get established. I will lose how long should the obliga- A few other provisions:
and I recommend that you some clover from trampling, tion of confidentiality apply? If the bull owner and the
have an adequate pH to best but the remaining clover will •Dispute resolution: breeder are in different
utilize the nutrients (for be better able to compete Few bull leases address dis- states, it is paramount that
most pastures a 5.5-7.0 pH with the established grass. pute resolution and they the contract should say what
is ideal). Avoid too much ni- Don’t forget to plan, every should—just ask anyone who the choice of law is (e.g., New
trogen as this may make the year is different. Some years has been a party to lawsuit. York, Illinois, Texas). Is there
pastures grow faster, but in we may have an early warm Litigation can be long and any exclusivity between the
the spring, it can also weak- spring which indicates a prob- expensive. Parties should parties? Can the agreement
en the root reserves since the able dry summer. Then some consider having a mediation be modified in writing? How
plant is moving nutrients up years we have a cold slow clause requiring the parties will the parties handle Acts of
to make seed heads. spring and a wet summer. to a bull lease to use an expe- God—tornado, earthquakes,
Mother Nature does not What will this year bring? rienced agriculture mediator hurricanes, floods, fire? Can
always cooperate. Some I do not know, but a key to to help facilitate a settlement the bull be subleased?
years when it is unusually successful grazing is trying of the dispute. If mediation As you can see, there is no
cool and I started to graze in to predict what is down the is futile, the parties should “one-size fits” bull lease that
late March, but grass did not road so we can be prepared consider having a binding is suitable for every trans-
grow as fast, I had to go back for it. I recall in 2012, I tried arbitration clause under the action. That’s why it is dan-
to feeding hay for a week, to get up as much extra hay rules of the American Arbi- gerous for cattle producers to
but it finally warmed up and as I could in case the sum- tration Association. pull a form off the internet,
everything was fine. A lot of mer turned dry, and it did. •Relationship of parties: fill in a few blanks, and hope
graziers like to see how long I had plenty of hay but not In most cases, the contract that it’s “good enough.” Bull
they can go until they feed water, so I had two springs should be clear that the bull leases should be carefully
hay in the winter, but you re-worked so we would have owner and breeder are not tailored for the unique needs
can save feeding hay on the more water. Whatever the forming a partnership, joint of your operation and the
other end…this end. growing season brings, hope- venture, agency, or any other circumstances surrounding
Every year, I seem to have fully we can be as ready as formal business association. a particular transaction. It
a paddock that takes an possible. As an exception, if the bull behooves cattle producers to
extra beating in the winter. lease includes a provision hire an attorney to help craft
It is usually one that need- that the parties will sell the a suitable bull lease. Cat-
ed extra fertility, and I fed progeny from the bull and tle producers can help keep
a lot of hay in that field and split the proceeds, then it is a legal costs down by using
partnership and instead of a this checklist and working
bull lease, the parties should through all the issues with
have a general partnership the other party before con-
• Featuring ‘ Program’ agreement. sulting an attorney. Even if
Cattle Weekly Put simply, when two or an attorney is not used as the
more people go to business draftsman, cattlemen should
• DVAuction Service for convenient together and share profits, try to memorialize the terms
online viewing & bidding then they have formed a part- of the bull lease in writing.

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For more information: Ross Patton 573-308-6657 • Bill Patton 573-308-6658 concept to understand be-
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