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 District of Columbia Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding agreement that outlines the terms and conditions for the purchase and maintenance of cattle in the District of Columbia. This agreement is specifically designed for cattle farmers and feeders in the District of Columbia region. The purpose of this contract is to establish a clear understanding between the buyer and seller regarding the purchase, care, and maintenance of cattle. It covers various important aspects such as the price of the cattle, the delivery and acceptance of the animals, as well as the responsibilities for their feeding and healthcare. The District of Columbia Purchase and Maintenance Agreement for Cattle — Feeder Contract may contain different types or variations, depending on the specific needs and requirements of the parties involved. Some possible types of agreements within this category may include: 1. Purchase Agreement: This type of contract focuses solely on the purchase of cattle. It outlines the price, payment terms, and delivery details. 2. Maintenance Agreement: This type of contract primarily focuses on the ongoing care and maintenance of cattle. It includes provisions for feeding, health monitoring, and veterinary care. 3. Feeder Contract: This type of contract is typically used when one party (the feeder) agrees to take possession of the cattle and feed them until they reach a desired weight or condition. The contract may specify the feed and feeding methods to be used, the timeframe for feeding, and any performance bonuses or penalties. 4. Combination Agreement: In some cases, a combination of the above types may be utilized, incorporating both purchase and maintenance aspects into a single agreement. This enables the parties involved to address all necessary terms in one comprehensive contract. The District of Columbia Purchase and Maintenance Agreement for Cattle — Feeder Contract is essential for ensuring a clear understanding between the buyer and seller, minimizing any potential disputes or misunderstandings. It provides a framework for conducting business in the cattle industry, promoting transparency, and protecting the interests of all parties involved.
