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 Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and maintenance of cattle in the state of Arizona. This agreement is designed to protect the rights and responsibilities of both the buyer and the seller, ensuring a fair and transparent transaction. Keywords: Arizona Purchase and Maintenance Agreement, cattle, Feeder Contract, terms and conditions, purchase, maintenance, buyer, seller, fair, transparent, transaction. There are several types of Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contract, each with its own specific variations to accommodate different scenarios and preferences. Some common types include: 1. Standard Purchase and Maintenance Agreement: This is the basic type of contract used for the purchase and maintenance of cattle in Arizona. It typically covers the essential terms and conditions, such as purchase price, delivery schedule, and maintenance responsibilities. 2. Customized Purchase and Maintenance Agreement: This type of contract allows for customization to meet the specific needs and requirements of the buyer and seller. It may include additional clauses or provisions tailored to factors such as breed specifications, feed requirements, or vaccination schedules. 3. Long-term Purchase and Maintenance Agreement: This type of contract is ideal for buyers and sellers looking for a more extended business relationship. It typically covers multiple cattle purchases over an extended period, and includes provisions for ongoing maintenance and care. 4. Breeding Purchase and Maintenance Agreement: Specifically designed for the purchase and maintenance of breeding cattle, this contract type includes clauses related to breeding rights, artificial insemination, health guarantees, and genetic testing. 5. Lease-Purchase Agreement: As an alternative to outright buying, a lease-purchase agreement allows a buyer to lease the cattle for an agreed-upon period before having the option to purchase them. This contract usually includes provisions for rental fees, maintenance responsibilities, and the purchase price and terms at the end of the lease period. Overall, the Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contract provides a comprehensive framework for conducting cattle transactions while ensuring transparency and fairness for both parties involved.
