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 Alabama Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally-binding document outlining the terms and conditions for the purchase and maintenance of cattle in Alabama. This agreement sets forth the obligations and responsibilities of both the buyer and the seller, ensuring a smooth transaction and the proper care and feeding of the cattle. This contract is essential for anyone involved in the cattle industry in Alabama, as it safeguards the interests of both parties and provides clarity on each party's rights and obligations. It covers various aspects related to the purchase and maintenance of cattle, including payment terms, delivery, health and safety standards, and dispute resolution. Key components of the Alabama Purchase and Maintenance Agreement for Cattle — Feeder Contract may include: 1. Purchase Terms: — Clearly stating the agreed price per head of cattle, including any additional charges or discounts. — Outlining the payment method and schedule, specifying deadlines for payment completion. — Addressing any financing or credit arrangements, if applicable. 2. Delivery: — Defining the agreed-upon delivery date, location, and accepted methods of transportation. — Describing the standards for cattle inspection upon delivery, including acceptable weight ranges and health conditions. — Outlining the responsibilities of both parties regarding transportation costs and risks during delivery. 3. Cattle Maintenance: — Establishing the ongoing care and maintenance requirements for the cattle, specifying feeding, health, and vaccination protocols. — Outlining the responsibilities of both parties related to the provision of feed, water, and medical treatment for the cattle. — Addressing the issue of liability in case of illness, injury, or death of the cattle during the maintenance period. 4. Breach and Termination: — Detailing the conditions under which either party may terminate the agreement, including breach of contract or non-payment. — Outlining the resolution process for disputes, such as mediation or arbitration, before resorting to legal action. — Defining the consequences of contract termination, such as the return of cattle, financial reimbursement, or indemnification. While the Alabama Purchase and Maintenance Agreement for Cattle — Feeder Contract is a standardized document, there might be variations or additional types of this contract tailored to specific situations or parties involved. These could include contracts for different cattle breeds or contracts that incorporate additional clauses for specific requirements, such as organic feeding or animal welfare standards. In conclusion, the Alabama Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document used to facilitate the purchase and maintenance of cattle in Alabama. It provides a framework for a transparent and mutually beneficial relationship between buyers and sellers, ensuring proper care for the cattle and adherence to industry standards.
