Cow Hire Agreements

Published 24 March 14

A 'cow hire' agreement allows the owner of dairy cattle to hire those cattle out to another dairy farmer. Ownership of the progeny from the hired cows remains with the farmer hiring them in (the lessee) but the contract may stipulate that the owner has the right to purchase any of the progeny.

Other terms in the contract are likely to define who is permitted to care for the livestock, the requirements of the lessee to insure them, the need to keep them in good condition and to allow the owner to inspect them at any time and will also define situations where the contract may be terminated.

The contract may also stipulate that no other livestock be permitted to be kept on the farm, except the lessee's own livestock and that the lessee is responsible for maintaining movement and other legally-required records of the hired-in cattle.

The contract will stipulate that, should any of the cows die or become unproductive, the owner will replace them, unless they are lost through negligence of the lessee or through any other stipulation within the contract, whereby the lessee becomes responsible for replacement.

DairyCo have template contracts available for producers to use in their businesses, please email for copy.