Obstacles for many young people wanting to get into the cattle business can be hard to overcome but the concept of cattle leasing may be a way. While not a new practice, North Dakota State University Extension livestock specialist John Dhuyvetter says cattle leasing may be just the ticket for those who don’t have a family ranch. Dhuyvetter tells Brownfield Ag News, “Leasing is usually a step for entry-level people with limited equity and financial borrowing power to make a first step, get some livestock they can work with, hopefully earn some profits and put back into their operation.”
In the long term, Dhuyvetter says he thinks ranchers should own their cows but says leasing can have advantages for both the lessee and leasor as long as they get to know each other well. He says, “As an owner you want an operator who’s going to do a good job with your cattle, who’s going to preserve their worth and value, keep them productive and healthy. Likewise, as an operator, you want someone who’s going to be fair with you in setting the rates, is going to be reasonable in accepting normal death losses in the trials of producing cattle, you know, and not push all the risk onto you.”
Because of the drought, high feed costs and other factors, Dhuyvetter tells Brownfield they are seeing more young operators getting into leasing cattle.
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