Custom Grazing Contracts

In custom grazing, one party owns the cattle and another owns the grass, and the contract decides who carries the work and the risk. Vague terms are where the trouble starts.

Key points

Custom grazing separates cattle ownership from grass ownership.
Spell out daily care, health decisions and who pays for what.
Keep treatment records and follow withdrawal times exactly.
Define loss reporting, liability and insurance up front.
Agree on weighing and payment methods before cattle arrive.

How custom grazing differs from a land lease

In a lease, the tenant rents the ground and runs the cattle. In custom grazing, the grass owner usually takes care of the cattle for a fee, often charged by weight gained, by day or by head. The cattle owner keeps ownership of the animals.

That makes the grazier responsible for daily care, which raises questions about health, losses and decisions. The contract must make these duties plain.

Because the arrangement depends on daily care by someone other than the owner, trust and communication matter as much as the paper. Visit the cattle regularly and expect updates.

Who does what

Decide in advance which tasks belong to whom. The cattle owner often supplies healthy, properly identified animals and arranges transport. The grazier usually supplies grass, water, fence, daily checks and handling facilities.

Write down who provides minerals, supplemental feed, and labor for working cattle. Do not leave these as assumptions.

Agree on how animals will be identified and sorted at the end. Ear tags, brands and photographs help prevent mix-ups if more than one owner's cattle share the same pasture.

Animal description, number and source
Arrival and departure dates and who hauls
Daily observation and reporting
Mineral and supplement responsibilities
Handling facilities and labor

Health, vet care and records

Agree who calls the veterinarian, who approves treatment costs and how quickly the owner will be contacted when an animal is sick. Keep clear records of any treatment so withdrawal times on the label or set by the vet are followed before animals are sold for beef.

Cattle moving between operations can bring disease with them. Ask your veterinarian what health preparation and records you should require before cattle arrive.

Keep a log of observations, such as sick animals found, treatments given, deaths and pasture moves. A shared log protects both parties and helps if buyers or programs ask about the cattle's history.

Death loss, injury and liability

No contract can prevent every loss, but it can say what happens when one occurs. Specify how losses are reported and documented, whether there is any shared risk, and who bears cost when animals escape or cause damage.

Check your insurance. Ask your agent whether care, custody and control of another person's cattle changes your coverage, and whether the cattle owner carries their own.

Fire, flood, predators, theft and lightning are all possible. Ask who tells whom, and how fast, when something serious happens.

Payment terms and ending the agreement

Be clear on how payment is calculated, when it is due, how weights are measured and whether scales are certified or shared. Agree on how weight disputes are resolved before there is a dispute.

Also set out what happens if rain fails, grass runs short or markets change. A good contract allows cattle to be removed early on fair terms.

Settle how fees are handled if the owner pulls cattle early or if the grazier needs the cattle gone. A clear exit keeps a bad situation from becoming a legal one.

Mistakes and what to ask

Common mistakes include no written agreement, unclear weighing practices, no plan for drought, and failing to check the grazier's fences and water. Cattle owners sometimes skip checking references. Graziers sometimes accept cattle they cannot handle safely.

Ask for references from other cattle owners, visit the operation, and have an attorney read the final document. Contract rules vary by state.

Both sides should keep a copy of the signed contract and any later changes, each dated and initialed.

Pasture, water and fence checks before turning out

Cattle owners should inspect the pasture before sending animals. Look at forage amount, water supply in dry weather, fence condition and the presence of poisonous plants. Ask the grazier how many other cattle will share the ground and how they are managed.

Graziers should check the cattle on arrival, note body condition and any visible problems, and record them. A clear starting point makes any later dispute about gain or health far easier to settle.

When to get help: Ask your veterinarian for health requirements for incoming cattle, your insurance agent about coverage, and an attorney to review the contract. Check your state department of agriculture for any movement rules.

Sources and further reading

Organization homepages are linked so you can search them for current guidance on this topic.

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