Beef is raised in three phases before it is processed: calves are raised on pasture and range land, as feeder cattle they feed on pasture, crop residue, and range land, and finally they go to feedlots, where they are fattened for slaughter. Feeder contracts are a type of futures contract based on young cattle that are sent to feedlots in preparation for slaughter. The Chicago Mercantile Exchange first introduced a feeder cattle contract in 1971.
It is important make sure the agreement is clear as to whether a bailment or an actual sale of the animals is intended. In order to constitute a bailment and not a sale, a fattening or raising agreement should provide that the owner agrees to provide the animals involved to the feeder with the owner retaining title to the animals, and the feeder or raiser is to feed or raise them for sale as the owner deems proper. This form is a sample of a sale rather than a bailment.
The Virgin Islands Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legal document outlining the terms and conditions between a buyer and a seller regarding the purchase and care of cattle in the Virgin Islands. This contract is specifically designed for contracts related to feeder cattle and covers various aspects of the transaction and cattle maintenance. The Purchase and Maintenance Agreement for Cattle — Feeder Contract typically includes key clauses and sections such as: 1. Introduction: This section provides an overview of the agreement and identifies the parties involved, including the buyer and the seller. 2. Purchase Details: This section outlines the specifics of the cattle purchase, including the number of cattle, breed, weight, and purchase price. It may also include provisions for inspections and the delivery location. 3. Maintenance Responsibilities: This section details the responsibilities of both the buyer and the seller regarding the care and maintenance of the cattle. It may cover topics such as feeding, water supply, medical care, and vaccination requirements. 4. Payment Terms: This section specifies the payment terms, including the payment method, due dates, and any additional fees or penalties for late payments. 5. Term and Termination: This section determines the duration of the contract and outlines the conditions under which either party can terminate the agreement. It may also include provisions for renewals or extensions. 6. Indemnification and Liability: This section addresses the liability of the buyer and the seller in case of accidents, injuries, or loss of cattle. It also includes provisions for insurance coverage and holds harmless agreements. 7. Dispute Resolution: This section outlines the methods and procedures to resolve any disputes or disagreements that may arise during the contract term, such as mediation or arbitration. It is important to note that the specific terms and clauses of the Virgin Islands Purchase and Maintenance Agreement for Cattle — Feeder Contract may vary depending on the parties involved and their specific requirements. Different types of cattle feeder contracts may include variations of the above sections to suit the preferences of the buyer or seller. For example, there could be contracts specifically tailored for organic cattle or contracts with additional clauses related to environmental conservation.
