What does it mean exactly if someone is only selling half interest in a bull?

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4diamond
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What does it mean exactly if someone is only selling half interest in a bull?

Postby 4diamond » Sun Jan 28, 2018 11:48 am

I have seen certain sales that are only selling part interest in their bulls. Is there more than just the possibility that the bull will become great which would mean that most people would want to go get him collected and sell the semen for some extra profit. Just wondered with registered cattle if you would have to pay the sire any extra money if he was not fully your bull but bred all your cows. Just curious, hope you all can help!
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Re: What does it mean exactly if someone is only selling half interest in a bull?

Postby kilroy60 » Mon Jan 29, 2018 5:41 am

Not an expert on this but from one experience that I witnessed, there were several owners of a bull that had a great EPD. The bull was actually at Origen (who also owned an interest in the bull) being collected and the owners would all receive an "X" amount of semen from the bull. They would then earn money on semen and certificate sells. They never actually kept the bull on their farm as it was always at Origen. Maybe someone else could better answer your question as I'm sure there are other ways on ownership like this.
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Re: What does it mean exactly if someone is only selling half interest in a bull?

Postby SchenkAngusFarm » Mon Jan 29, 2018 4:15 pm

Buying one with half-interest varies on if you are buying it with possession or not or an arrangement between the two.
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Re: What does it mean exactly if someone is only selling half interest in a bull?

Postby Lazy M » Mon Jan 29, 2018 7:58 pm

Most big seedstock sell with 1/3 or 1/2 retained ownership with the buyer getting full possession. They claim that it is because their bulls are so good that any one of them is liable to be a seedstock stud bull, and they want to be sure to get a cut of potential semen sales. This may be true for a few of their top bulls, but overall it is kind of a sales gimmick.
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Re: What does it mean exactly if someone is only selling half interest in a bull?

Postby ALACOWMAN » Mon Jan 29, 2018 8:05 pm

Like keeping the mineral rights when you sell property...
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Re: What does it mean exactly if someone is only selling half interest in a bull?

Postby DLD » Mon Jan 29, 2018 10:14 pm

Just saying half interest is a little vague as to whether it’s referring to semen interest or possession. The others are right about the semen interest - some breeders will say they’re retaining some percentage of semen interest in every bull they sell. Almost all of the time it will end up meaning nothing to the buyers because the seller never exercises that interest. Occasionally in the case of one that is shown, or turns out to be an exceptional sire they may want some semen for their use or may want to sell some - it shouldn’t cost you anything unless you both choose to promote the bull and could make you some money. It’s a little off putting to me when a seller states they’re retaining a semen interest in every bull they sell, but like I said, it usually never happens, and I agree it’s probably mostly a sales gimmick.

Half possession can be a viable alternative for two (or more) breeders to pool their money and be able to purchase a better bull than each could afford on their own, or for the breeder of the bull to retain an option to use him naturally. It’s probably a lot more common with producers of registered and/or show type cattle than with commercial breeders. Maybe one breeder will use the bull for fall calving and the other for spring, or they split their possession a year at a time. If you think it sounds crazy then it’s probably not for you, but I have owned partial possession of several different bulls over the years. Some turned out to make us good money, some turned out to be expensive cow fresheners - just like if I owned 100% of them, but with a little less monetary risk. It can be a good deal if you know and trust your partners.
Last edited by DLD on Mon Jan 29, 2018 10:58 pm, edited 1 time in total.
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Caustic Burno
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Re: What does it mean exactly if someone is only selling half interest in a bull?

Postby Caustic Burno » Mon Jan 29, 2018 10:38 pm

Lazy M wrote:Most big seedstock sell with 1/3 or 1/2 retained ownership with the buyer getting full possession. They claim that it is because their bulls are so good that any one of them is liable to be a seedstock stud bull, and they want to be sure to get a cut of potential semen sales. This may be true for a few of their top bulls, but overall it is kind of a sales gimmick.


I bought one that way, I had full possession.
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Re: What does it mean exactly if someone is only selling half interest in a bull?

Postby jerry27150 » Tue Jan 30, 2018 6:07 pm

i have bought some that way, bull completely yours but if you ever sell semen they get half from what you get
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