Following is some information on the subject on custom calving prepared in 1995, so it needs to be adjusted for changes in labor costs, fuel costs, and feed costs. The information is based on interviews with ranchers who are involved in this type of management agreement. In custom finishing yards, there is usually a yardage charge that is used to cover equipment, fuel, labor, depreciation, and overhead charges and is usually in the range of $0.30 to $0.35 per head per day. In addition, there is a mark-up on feed. You will notice in the information below there is an incentive for live calves at birth of a certain percentage. The key when you get into these arrangements is that you have the arrangement written down and both agree so that there are no misunderstandings when it is time to settle up. What the “Cow Owner” Looks For - Good reputation - Skilled manager - Good facilities/records - Adequate labor - Reasonable feed price What the “Cow Manager” Looks For - Good reputation - Productive cattle - Uniform groups - Incentives: live calf; financing assistance A Good Agreement Has - All names - Accurate description of property being shared/leased - Start and ending dates - Amount of payment and when - Signatures What Makes a Custom/Share Work? - Trust - Simple, accurate agreement - Each party writes in own words - Incentive for good work Custom Calving - Example - Winters cows on stalks - 27¢ day - Nov. 1 - May 1 - Hay at $50 ton - $30.00 per live calf May 1 - This rancher has been in this arrangement for three years. Custom Calving - Example - Has cows only during calving - 60 days, 300 head - Owner pays all feed - Manager gets $2,000 per month + $5 per live calf - Manager has been in this arrangement for four years. Custom Calving - Example - Night calves for neighbor (within 5 miles) - 300 heifers, 65 days - $40 night Custom Calving - Example - Calved 400 heifers - 6 to 7 weeks - Used owner's facilities - $3,000 + $5 per live calf to pasture - Calves hauled to pasture each week - Owner pays for vet and vaccines - Manager weighed and tagged each calf Custom Calving Only - Estimate labor at $8 to $10 Hour - Incentive of $5 per live calf - 200 head per person - heifers; 400 head per person - cows - Cost = $12 to $15 per head for large groups 200-400 head - Less than 1 hour per head - Could be $40 for small groups less than 50.

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