Common Contracts
1 similar Livestock Lease Agreement contracts
Where can i get a free lease agreement formLivestock Lease Agreement • February 24th, 2021
A livestock lease allows a farmer to reasser the benefits of a cow, bull or herd of cattle without having to pay the full purchase price. Depending on the terms of the agreement, the farmer can also avoid other expenses, such as the cost of having to replace a dying cow, some of the costs of feeding livestock and some veterinary bills. A livestock lease can provide tax breaks for the seller. When a farmer buys a cow, the seller immediately recognizes the full gain in the sale. According to Colorado State University, a lease allows the seller to recognize sales revenue over time, and the seller gets the highest tax benefit from a calf share agreement. A livestock lease allows a farmer to monetize a herd, even if the farmer can no longer afford to feed and care for the herd, without permanently selling the herd. If the farmer temporarily has a shortage of money, the farmer can rent the herd and then recover livestock when the funds are available without having to borrow money to buy many
