There are pros and cons to the practice
The landscape of the cattle market has shifted over the last couple of years. As the value of cattle has increased, smaller producers may now have a more difficult time justifying the cost of purchasing and managing a herd bull. Though leasing a bull can be a viable option for some producers, it comes with some challenges as well.
“Like any rental agreement, there can be a varying list of pros and cons that need to be evaluated. With some forward thinking and having everyone on the same page as far as understanding who is responsible for what, many bad situations can be avoided,” Andy McCorkill, University of Missouri Extension Regional Livestock Specialist, explained.
Leasing Advantages: One of the advantages to leasing a bull for smaller operations is the ability to afford higher quality genetics. “A big pro for a small producer is that they could potentially gain access to some better genetics than their pocketbook could justify spending the money on; this however is dependent upon doing your due diligence in selecting a bull provider that will deliver what you’re looking for, and their word,” McCorkill said.
McCorkill added some seedstock operations in the Western states lease bulls as part of their general business plan. Some of these operations will also help producers market their calf crops and even offer calf buyback programs.
Additionally, leasing a bull can also be more economical when it comes to the expense of feeding and caring for a bull year-round. “It may easily be possible to run an additional cow in place of having to feed a bull that is only working for you a quarter or less of the year,” McCorkill shared.
Reducing the amount of time a bull is on the operation can simplify management. For example, when a bull isn’t out working, he requires an additional pen, and a bored bull can sometimes get in trouble and be a bit destructive. The shorter the time a bull is in a producer’s care, the lesser the chance of problems.
Leasing Disadvantages: While producers will want to weigh the advantages to leasing a bull, evaluating the disadvantages is equally as important. Livestock specialists cite two main drawbacks to leasing a bull: a chance of the bull bringing disease to the herd (such as trichomoniasis), and the bull not being able to perform his job.
Producers will want to make sure the bull undergoes a semen check and tests negative for trichomoniasis. In addition, producers will want to choose someone with a good reputation and get all terms of the bull lease in a written agreement.
Getting all the terms of the lease in writing can reduce potential problems. “Like a lot of situations in agriculture, what often starts out as a friend or family member extending a helping hand can turn into a trainwreck that breaks the bonds of friendship if something goes wrong,” McCorkill explained. “No one likes to see that happen, a solid agreement ahead of time can help keep that from happening. Risk of the unknown can be a costly thing, and that must be weighed when making the decision.”
Responsibility: What happens if the leased bull is injured, becomes ill, or dies depends on the details hashed out in the lease agreement. “A written agreement would be advisable, and those that are in the business of leasing bulls on a regular basis will typically have a written agreement developed,” McCorkill said.
The bull lease agreement should include the lease price, length of the breeding season, responsibility in case of injury or death, and what type of insurance and which party will carry it.
“A breeding soundness exam including a negative trichomoniasis test ahead of and after each breeding season would be an advisable component of that agreement to ensure that the bull is a viable breeder and isn’t spreading disease,” McCorkill said.
Smaller producers wanting to benefit from the economical and genetic advantages of leasing a bull could consider yet another option.
“Although the transition can be quite difficult and isn’t practical for everyone, going the route of 100 percent artificial insemination could be the better bet for some small producers,” McCorkill stated.
