Page 23 - MWC 10-26-2023s

The Midwest Cattleman · October 26, 2023 · P23
Cow-Calf Share or Lease Agreements Need Review
By Aaron Berger - University of Nebraska Extension
The trend in cattle prices of cash lease that would be ex- ing interest rates means the production of weaned calves
over the last year has been pected to go to cow owners, or person owning the cows may and what their compensation
dramatically toward the up- the percentage of the calf crop need to get a larger cash lease should be either in cash or in
side. Prices have risen higher a cow owner should receive. payment or percentage of the a percentage of the calf crop.
and faster than many mar- This change is due to the cur- calf crop to reflect more accu- Annually reviewing cow-
ket analysts thought possi- rent market value of a bred rately what is “fair” compared calf share or cash cow lease
ble for 2023. These changes cow versus what the bred cow to where things were just two agreements is prudent under
in market value are having value was in the fall of 2022. years ago. current rapidly fluctuating
an impact on beef cow share The dramatic increase in in- For the upcoming 2024- market conditions. For cow
and cash lease agreements in terest rates over the last two year, cow-calf share leases share or lease agreements
determining what is “fair” to years is also impacting what or cash leases should be re- to be successful long term, it
both cow owners and those is a “fair” share and cash lease viewed. The lease should ac- must work for all parties in-
who are leasing the cows. rate as well. The change in curately reflect what each volved.
For a cow owner, the follow- cow value as well as increas- person will contribute to the
ing are the four major driv-
ers that determine what is
"fair" in terms of a cash lease
or percentage of the calf crop January 19-20, 2024
the cow owner should receive.
Those factors are:
•Average cow herd value Location:
•Cow salvage value Margaritaville
•Replacement rate Lake Resort
•Expected rate of return
(interest rate) on cow value 494 Tan Tara Estate Dr
The average market value Osage Beach, MO 65065
of bred cows and cow salvage Reserve a Room:
values are significantly higher 573-348-3131
than they were just a year ago.
This dramatic change in mar-
ket value is impacting what is To Register
“fair” in terms of the amount
Online:
Visit
Callaway www.mocattle.com

Livestock Check under the Events &
Meetings tab for
Center, Inc. registration information

On I-70, 4 miles east of Registration is Now Open!
Kingdom City, MO on outer road By Mail:
Download the
573-642-7486 Whether you’re just starting out or bringing your third generation into the business,
Registration form on the learning how to better your operation is always a great investment. Join us in Osage
website and mail to MCA Beach this January to meet and learn from some of the industry’s top experts and
Feeder Sale Heaquarters network with fellow producers from across the state.
Monday MOVE MISSOURI’S BEEF INDUSTRY FORWARD.

12:30 p.m. Cattlemen’s Education
Series

1st Thursday Night Learn from the latest and
of Each Month greatest industry experts
regarding current issues and
6:00 p.m.
topics in the beef industry
Special Cow Sale

Questions?
Call 573-499-9162
Jack Harrison
573-386-2138
MCA Headquarters
John P. Harrison 2306 Bluff Creak Drive

573-386-5150 Columbia, MO 65201