Series 22: 3.4.1. Cattle Feeding Programs

3.4.1.  Cattle Feeding Programs

A cattle feeding program involves the purchase of calves that are fattened over a 4–6-month period and then sold for slaughter. Calves are generally purchased toward the end of one calendar year and sold in the spring of the following year. The program will either be terminated after one feeding cycle or rolled over indefinitely by using the income in the spring to purchase more calves in the fall.

Before 1986, cattle feeding programs were one of the most widely used tax shelters. Investors could leverage their purchase and use cash accounting to