Contract growing cattle is a business enterprise in which a person (i.e. grower) who owns or rents land enters an agreement with a cattle owner to grow cattle by grazing forage, feeding concentrate feedstuffs or a combination of both and provide cattle management for a defined period of time. Contract growing arrangements are generally established when an arrangement can be beneficial to both the grower and the cattle owner. There are several reasons a grower may prefer contract growing cattle instead of owning the cattle. Those reasons may include a lower investment cost since the cattle are not purchased or owned, little to no risk associated with market price fluctuations and reduced cattle production risks such as death loss. Similarly, the cattle owner may prefer a contract growing opportunity due to lack of available and suitable grazing land, shortage of labor to manage the cattle or not having the skill set to manage the animals.

The objective of this publication is to outline challenges and benefits of contract growing as well as factors that both the grower and the cattle owner should consider when evaluating and developing a contract growing agreement. This publication is not an exhaustive list of considerations, but rather it presents the components and factors that should be outlined and discussed in all contract growing agreements

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To read the full version of this publication, download a PDF of Contract Growing Cattle Considerations, W1337.

This publication is a collaborative effort among professionals from Alabama Extension at Auburn University and the University of Tennessee.

Ken Kelley, Farm and Agribusiness Extension Specialist, Alabama Extension at Auburn University; Max Runge, Extension Professor, Alabama Extension at Auburn University; and Andrew P. Griffith, Professor, Department of Agricultural and Resource Economics, University of Tennessee

New August 2025, Contract Growing Cattle Considerations, W1337