Common Contracts
1 similar Cattle Lease Agreement contracts
How to write up a land lease agreementCattle Lease Agreement • March 7th, 2021
The cattle lease agreement allows the farmer to benefit from a cow, bull or cattle herd without having to pay the full purchase price. Depending on the terms of the contract, the farmer may also avoid other expenses, such as the need to replace the dying cow, some cattle feeding costs and some veterinary bills. A cattle lease agreement can provide tax benefits for the seller. When a farmer buys a cow, the seller immediately recognizes the full profit from the sale. According to Colorado State University, the lease allows the seller to recognize the proceeds of the sale over time, and the seller gets the greatest tax benefit from the calf share agreement. The cattle lease agreement allows the farmer to obtain income from the 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 lease the herd and then pick up the animals when funds are available without having to
