Rent-a-Cow

Hertz for Holsteins

The hardy farmer who forged the American frontier in the 19th century had 40 acres of land, a mule and a couple of good milk cows. But that was in the days before rent-a-cow. Instead of spending up to $2,000 to buy a dairy cow, some 300 U.S. farmers have turned to the Quality Holstein Leasing company of Tennessee Colony, Texas, the Hertz for cattle, where they can rent a cow for as little as $1 a day.

Ten years ago, Clayton McKenzie, 37, began his venture after realizing that the high cost of buying cows was limiting business for many dairymen. Local banks normally charge an initial down payment of 30% on a loan for the purchase of a cow, while farmers renting one lay out only 6% of the cost. After starting with a two-man operation, McKenzie last year needed a bank of computers and 30 employees to keep track of around 50,000 head leased to farmers in 25 states. Sales totaled $20 million.

Six weeks ago, Harold McCray of Mayo, Fla., signed a five-year agreement with Quality Holstein for 70 dairy cows. The herd cost him an initial cash outlay of only $6,000 rather than the $100,000 purchase price. McCray now expects to make $4 per day on each cow and receives as a bonus any offspring born during the lease. He also expects to exercise an option that would permit him to buy the cows at a discount when the contract expires in 1985. As long as credit money to farmers remains tight, Quality Holstein Leasing is likely to be rolling in clover.

This file is automatically generated by a robot program, so viewer discretion is required.