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Agriculturists have long used leasing arrangements as a means of farming or ranching with more than owned resources. Most commonly, land has been leased, but other resources can be acquired in a similar manner. Beef cows are leased between parties on either a cash or share of calf crop basis, but share leases seem to be predominant. Bulls, when not part of a cow share agreement, are primarily leased for cash.
Leasing arrangements may be considered in several situations. Producers can use leases, calf share in particular, to transfer ownership of cows to others over time with possibly less income tax consequences compared to an outright sale. Individuals who are forced to liquidate cowherds may use leases as a means for re-establishing a herd without needing to borrow money for capital purchase. Producers who wish to establish new or expand existing cowherds could examine leasing as an alternative to raising or purchasing cows.