 Paul Husband has recently republished his popular article "Equine Leasing Transactions", in which he explains why leasing has become an attractive option to outright ownership for many breeding operations. The article outlines the potential cost savings and income producing advantages for the lessee and lessor, and explains key terms to be included in both stallion and mare leasing contracts. Will the income from stud fees be split between both parties and at what percentage? Will both parties retain breeding rights to the stallion? Who will pay for the insurance and who is entitled to collect in the event of a claim? Who will pay overhead, board and veterinary costs? How will registration applications and required reports be handled? In the case of a mare lease, who will be entitled to the foal(s)? Will the mare be stalled or pasture boarded? What stallion will she be bred to?
Paul goes on to give several case scenarios focusing on options and valuable recommendations regarding specific agreements for each. Tax benefits in regard to savings and deferrals are also discussed. In these times of rising costs, it's more important than ever to make sound business decisions for your breeding operation. Find out if a leasing might be a viable option to help your equine operation reach its goals of increased profitability and success.
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