In today`s rapidly changing economic times, one may want to redefine fair percentages each year or semi-annually if commodity prices change. To do this, it is sufficient to indicate this frequency of recalculation in the initial written agreement. The most difficult part of forming a fair agreement on the proportion of cattle is to project the “full” production costs used to determine the fair proportions of calves-harvests. The total cost should cover all resources used in the exploitation of beef. These include the direct costs of the company, opportunity costs for the work and management of the farmer, as well as the equity provided by both parties. The depreciation of cows should be taken into account instead of the costs of replacement dyeing. I recommend including replacement shades in the agreement on cow shares. My experience shows that this does not work and can quickly cause discontent from one or both business partners. Instead, I propose that replacement shades be developed by a third party and that they be the responsibility of the owner of the cow.
Figure 2 shows the operating and operating costs and the assumed resource allocation for these examples. This agreement aims to provide the working farmer with all the summer and winter feed, with the annual market value of the feed being estimated at 312 $US per cow. Feed from agricultural holdings is valued at the market value and not at the cash cost of its production. Veterinary and drug costs are shared, with the cow owner providing the vaccines and the farmer who works the work. The “Share” column shows the breakdown of all other expenses. • First, these agreements should be in writing, with the written contract clearly indicating all the agreed details. Be sure to cover all production costs, identify expected deaths and set penalties for excessive deaths, and indicate exactly how the enterprise contract should be terminated. It is much easier to work out the details before the agreement is signed than to draw up a cancellation agreement in case of urgency or disagreement. A rental or sharing contract for cattle allows two business partners to share the production costs and therefore the income of the shepherd.
The question is what is a fair or equitable way to share cattle income. Here are my proposals for the establishment of a fair beef rental contract. • Second, two parties can enter into any legal agreement that is accepted by both parties, even if it is not fair….