The Sunrise Group, Leasing quality cows to quality people since 1990.

What does The Sunrise Group do?

We lease quality dairy cows to quality people and have been doing so since 1990. We are prepared to lease cows anywhere in the continental United States.

Why lease rather than borrow money from a bank?

Leasing frees up working capital with the benefit of being able to deduct the payments for tax purposes (in many cases). If you borrow money from a bank, you are using up available capital (cash) which could be used for other farm expenses or kept intact for emergency purposes.

In what type of dairy operation does leasing make the most sense?

Any company or individual that has been milking cows for at least two years and has excess capacity in their dairy is a prime candidate for leasing. Since these dairies have already incurred their fixed costs, the cash flow from leased cows is pure profit for these businesses after the lease payment and cost of feed for the leased cattle.

In what states do you lease dairy cows?

We lease dairy cows in the 48 continental United States.

Is there a down payment for a Sunrise dairy lease?

Yes, we typically require two of the 48 monthly payments at the time of signing the lease. The down payment cost is typically about $100 per cow. There is also a nominal documentation fee upon signing a lease. Our down payment is significantly less than what a traditional lending institution would require.

What is the interest rate on a dairy lease?

The amounts charged on a dairy lease are calculated using monthly "rental rates" instead of using an interest rate that is typically associated with conventional loans. Rental rates are based on the lessor's ability to manage risk and costs associated with owning cows, while passing on the economic savings to the lessee.

Do I have to get my dairy cows from The Sunrise Group?

No, we prefer buying dairy cattle in your local area, if possible. You may select dairy cattle from any reputable source of your choice.

What is the standard length of your dairy lease program?

The standard length of a dairy lease is 48 months.

May the cows be returned at any time?

No, the lease is a non-cancelable contract for the lease term as specified in your contract (typically 48 months).

What is the typical process for leasing dairy cows?

You fill out a simple application which includes things like contact information, creamery data, and a simple financial statement (what you own and what you owe). We also normally require tax returns. The supplied credit information is reviewed and upon approval, the lease documents are prepared. A representative from our company will then meet with you personally to explain each document and answer any questions you may have. You locate the cows you wish to purchase and upon receipt of an invoice, money is paid for the cows. You will immediately start to benefit from filling your dairy, and in 30-60 days after we pay for cows, we will begin receiving a milk assignment.

What about insurance?

For your protection, it is required that the cows be insured. At a minimum, customers are obligated to insure the cows against loss, theft, damage, destruction and general liability. Dairies typically just add the cows to their existing insurance policy.

What if one of the cows dies or is culled during the lease term?

The customer is responsible for replacing the cow with a cow of equal or greater value. We require that you keep and tag the heifer offspring, and these heifer calves can be used as replacements once the heifers freshen.

What are the options at the end of the lease?

There are a number of scenarios for the end of a lease. Some include the option to either purchase at a stated amount or at Fair Market Value, to renew the lease at the end of the original lease term, or return the cows with no further obligation.

Does it cost anything to apply for a lease?

No, the application process is completely free to the applicant.