Professional Cattlemen's
Bull Leasing Program
Profit Maker Bulls
Progressive BUSINESSMEN HAVE long used leasing as a means to conserve capital while maximizing business flexibility.  Assets that have been leased include land, office space, heavy equipment, farm equipment, tractors and automobiles.

Consider the opportunities

  • Lease the Same High Quality bulls that you are currently BUYING
  • Reduce breeding service Costs
  • Eliminate Wintering of bulls
  • Eliminate Fertility Problems with your bulls
  • Run More Cows on existing feed resources
  • Have More Flexibility to change breed and trait emphasis

While bull leasing has been used by some commercial cattlemen for a number of years, it HAS generally had an unsavory reputation among professional cattlemen.  Concerns have centered around not having high quality bulls available to lease and making sure that leased bulls do not introduce health problems.

The PMB Professional Cattlemen's Bull Leasing Program offers the same high quality bulls for lease that we have been selling for the past 25 years.

All bulls that have previously seen service will have been re-vaccinated for lepto and vibrio, and will have had A negative PCR Trich Test before they are sent out for service.

Cost of Service

COST OF SERVICE IS the TOTAL COST that ranchers incur TO GET their COWS BRED.

Many ranchers consider their annual cost of service to be Purchase Price less Salvage Value divided by the number of years the bull was used.  For example, if a bull was purchased for $2000, used for 4 years and salvaged for $800, the annual cost of service would be calculated as $2000 less $800 = $1200 divided by 4 years = $300 per year.

This calculation LEAVES OUT SIGNIFICANT additional COSTS.  To obtain the REAL COST OF SERVICE, one must ADD the OTHER DIRECT COSTS:

  • ANNUAL INTEREST on the purchase price.
  • MAINTENANCE COSTS - feed, pasture, mineral, supplement and Vet. costs.
  • PREMATURE LOSS FROM SERVICE due to injury, infertility or death.
  • ANNUAL FERTILITY TESTING.
  • LOSS OF REVENUE - Instead of maintaining bulls for the 9 months that they are not in use, RUN ONE MORE COW - the PROFIT FROM the ADDITIONAL CALF should be $100 or more.

The following COST OF SERVICES TABLES INCLUDE these OTHER DIRECT COSTS.

Comparison of Cost of Service
Purchase -vs- Leasing a $2,500 Bull

Annual Cost Purchase Lease

Maintenance while not in use
9 months @ $60 per month

$540  
Annual Interest @ 8% - $2,500 x .08 $200  
Loss of Use $2,500 Bull 10% per year
x Purchase Price Less Salvage
$146  

Lost Profit from Not Maintaining
one more cow instead of a bull

$100  

Semen Testing

$30  

Total Annual Cost 

$1,016 $997 (a)

Assume 4 Years of Use ~ Annual Cost x 4 

$4,062 $3,987
Plus Purchase Price $2,500 $0

Less Salvage Value 1900 lbs. @ $.55

($1,045) $0
Fences - Facilities ??? $0
Total Cost $5,517 $3,987
Lease Vs Ownership Savings per Bull   ($1,530)
Bull Battery of 30 Bulls   ($45,910)

Basic Lease Cost is 1/3 of $2,500   $833
Insurance is 10% of the Basic Lease   $83
Freight, 10 Bulls 200 Miles Each Way   $80
Total Lease Cost (a)   $997

More Opportunities

  • Conserve Capital for Other Pressing Needs
  • Increase Uniformity - Lease Groups of Full, 7/8, 3/4 or 1/2 brothers.
  • Utilize Market Opportunities Developed by the PMB Integrated Vertical Cooperative
  • Participate in the PMB Customer Genetic Evaluation Trials
  • Utilize the Cow Power of More Than 3500 Registered Angus Cows in the PMB Genetic Alliance.
  • Delivery and Pick Up of All Bulls
  • Sight Unseen Satisfaction is Guaranteed
  • Performance Data, EPD's and Ultrasound Data are Available for your Selection


For More Information, call or e-mail us today!

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