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.
A California Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding agreement between the buyer and seller for the purchase, care, and maintenance of feeder cattle in the state of California. This agreement outlines the terms and conditions related to the acquisition, management, and responsibilities involved in raising feeder cattle. Feeder cattle are young cattle that are raised for a period of time on a diet consisting primarily of grain and other feed, with the purpose of being sold for beef. The agreement includes details such as the total number of cattle to be purchased, the purchase price, the payment terms, and delivery dates. The contract also covers the responsibilities of the buyer, such as providing proper housing, feed, and veterinary care for the cattle until they reach the desired weight or age for sale. It outlines the feed ration requirements, vaccination protocols, and any necessary medical treatments that need to be carried out by the buyer. In addition, the agreement may address insurance requirements, indemnification provisions, and dispute resolution mechanisms. It may also include provisions for the termination of the contract, such as in the event of disease outbreak or breach of the agreement by either party. Different types of California Purchase and Maintenance Agreements for Cattle — Feeder Contract may include variations based on factors such as the duration of the agreement, the specific breeds of cattle involved, and any additional services or arrangements offered by the seller, such as training or transportation services. These variations allow buyers and sellers to customize the agreement to their specific needs and circumstances. Overall, a California Purchase and Maintenance Agreement for Cattle — Feeder Contract is a crucial document that ensures a clear understanding and agreement between the buyer and seller in the purchase and care of feeder cattle.
