The cattle industry has been slowly moving to a pricing system whereby feedlots are paid for the meat value of their cattle instead of an average price per head. Such a system will reward the cow/calf producer with superior carcass genetics, and will reward the feedlot finishing the cattle, and, ultimately, the consumer with better and more uniform beef.

The purpose of this program is to help cattlemen produce a consistently high quality calf for feedlots and the meat packing industry. The program will also give the cow/calf producer more options in marketing their cattle, resulting in benefits from the premium (i.e., a loss of discounts) that packers are willing to pay.

The Bull Leasing program will be operated as follows:

• The Flying A Cattle Company will select Bulls for the program based on the Bull's EPD's and general soundness.
• The Flying A Cattle Company will have all Bulls semen tested prior to breeding.
• The lessee will be responsible for picking up the Bulls from the Flying A Cattle Company and for delivery back after the breeding season.
• The lessee will sign a waiver releasing the Flying A Cattle Company from any and all liabilities resulting from personal and property damage done by the Bulls.
• The Flying A Cattle Company will not be responsible for non-breeders due to injuries to Bull while in the lessee's possession.

The marketing of the calves will be enhanced by using one of the following options:

1. Lessee may place the calves in the Flying A Cattle Company's feedlot for retained ownership. These cattle will be fed under a custom feeding program determined by the Flying A Cattle Company and the calf producer. This alternative will be available as space permits on a first-come, first-serve basis.
2. Flying A Cattle Company will partner on calves with the lessee. Flying A Cattle Company will pay lessee $____ per head up front for calves. Feed, processing cost and lot charges will be billed monthly on your percent in the calves and settlements will be done at end of feeding period based on percentages of ownership.
3. The Flying A Cattle Company has the option to purchase the calves at fair market value. Fair market value will be set by averaging the calf prices off the DTN market for Dunlap and Lamoni livestock auctions at the sale date or other means jointly acceptable to the Flying A Cattle Company and the producer.

If you have any questions concerning the Flying A Bull Leasing program, please contact us.