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Beef Cow Rental Arrangements For Your Farm

Summary

Managing risk is required for many farm enterprises to be profitable and sustainable. Leasing assets, rather than purchasing them, is a form of risk management as it typically requires less capital. Leasing or sharing arrangements between farm operators and property owners have long been used to acquire control of land. In recent years, leasing has become more common for machinery and livestock. Contractual arrangements — such as livestock leases — can be crafted to lend or transfer capital, while also sharing risk. The terms of the agreement depend on the contributions of the owner and operator, as well as the motivation for the lease.