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 Hawaii Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions between a buyer and seller in the state of Hawaii in relation to the purchase and care of cattle for feeding purposes. This agreement pertains specifically to the relationship between the buyer, who is responsible for purchasing the cattle, and the seller, who is responsible for providing maintenance and care for the cattle throughout the feeding period. The key elements covered in this contract include the identification of the buyer and seller, the description of the cattle being purchased, the agreed-upon purchase price and payment terms, as well as the duration of the maintenance and feeding period. Additionally, it outlines the responsibilities of each party, including the transportation of the cattle to the buyer's location, the required to be feed and medical care to be provided by the seller, and any other specific requirements or conditions agreed upon. It is important to note that there may be different types or variations of the Hawaii Purchase and Maintenance Agreement for Cattle — Feeder Contract, each tailored to the unique needs and preferences of the parties involved. Some variations may include: 1. Standard Purchase and Maintenance Agreement: This is the most common type of contract, outlining the general terms and conditions of the purchase and care agreement. It covers the essential elements mentioned above. 2. Customized Purchase and Maintenance Agreement: This type of contract is specifically tailored to meet the individual needs and preferences of the buyer and seller. It may include additional clauses or specific requirements agreed upon between the parties. 3. Short-term vs. Long-term Contracts: Depending on the intended duration of the feeding period, there may be contracts that differ in length. Short-term contracts may cover periods of a few months, while long-term contracts could extend to a year or more. 4. Buyback Agreement: In some cases, a buyback agreement may be added to the contract. This allows the seller to repurchase the cattle from the buyer at an agreed-upon price after the feeding period, depending on specific conditions outlined in the contract. In summary, the Hawaii Purchase and Maintenance Agreement for Cattle — Feeder Contract is a vital document that ensures a clear understanding of the obligations and responsibilities of both the buyer and seller in the purchase and care of cattle for feeding purposes. The specific terms and conditions outlined in the agreement can vary depending on the needs and preferences of the parties involved.
