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 Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document used in the livestock industry to outline the terms and conditions of purchasing and maintaining cattle in Iowa. This agreement typically covers various aspects, including the purchase price, delivery terms, cattle maintenance responsibilities, and dispute resolution procedures. It is a crucial contract for both buyers and sellers to ensure a smooth and transparent transaction when dealing with feeder cattle. Some important keywords related to the Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract include: 1. Iowa: Referring to the specific state where the agreement is executed and where the cattle are located. This agreement is tailored to comply with Iowa's laws and regulations. 2. Purchase Agreement: Highlighting the contractual provision that outlines the terms, conditions, and obligations related to the purchase of the cattle. This section may include the purchase price, payment terms, and any warranties or representations made by the seller. 3. Maintenance Agreement: Describing the contractual responsibilities and duties of the buyer or feeder regarding the maintenance, care, and wellbeing of the cattle once they are purchased. It may cover feeding practices, veterinary care, and management protocols. 4. Cattle: Denoting the livestock involved in the transaction. This could include feeder cattle, which are typically young cattle being prepared for market or finishing, as well as any specific breed or classification mentioned in the contract. 5. Feeder Contract: Emphasizing the specific nature of the agreement, indicating that it pertains to the purchase and maintenance of feeder cattle specifically. Feeder contracts may differ from other types of livestock contracts, such as breeding or slaughter agreements. Different types or variations of the Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract may include: 1. Standard Feeder Contract: A commonly used agreement that encompasses general terms and conditions for the purchase and maintenance of feeder cattle in Iowa. 2. Customized Feeder Contract: A contract tailored or modified to meet the specific requirements of a particular buyer or seller. This may involve negotiating certain terms, such as feeding practices, health requirements, or genetic criteria. 3. Forward Pricing Feeder Contract: A contract that includes a price agreement for future delivery of feeder cattle. This type of contract allows buyers and sellers to lock in prices in advance to mitigate market volatility. 4. Value-Added Feeder Contract: A contract that involves additional value-added practices, such as specific feeding programs or breed requirements, to enhance the value or marketability of the feeder cattle. In summary, the Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive contract used in the livestock industry to govern the purchase and maintenance of feeder cattle in Iowa. It is important for both buyers and sellers to understand the terms, responsibilities, and types of contracts available to ensure a successful and mutually beneficial transaction.The Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document used in the livestock industry to outline the terms and conditions of purchasing and maintaining cattle in Iowa. This agreement typically covers various aspects, including the purchase price, delivery terms, cattle maintenance responsibilities, and dispute resolution procedures. It is a crucial contract for both buyers and sellers to ensure a smooth and transparent transaction when dealing with feeder cattle. Some important keywords related to the Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract include: 1. Iowa: Referring to the specific state where the agreement is executed and where the cattle are located. This agreement is tailored to comply with Iowa's laws and regulations. 2. Purchase Agreement: Highlighting the contractual provision that outlines the terms, conditions, and obligations related to the purchase of the cattle. This section may include the purchase price, payment terms, and any warranties or representations made by the seller. 3. Maintenance Agreement: Describing the contractual responsibilities and duties of the buyer or feeder regarding the maintenance, care, and wellbeing of the cattle once they are purchased. It may cover feeding practices, veterinary care, and management protocols. 4. Cattle: Denoting the livestock involved in the transaction. This could include feeder cattle, which are typically young cattle being prepared for market or finishing, as well as any specific breed or classification mentioned in the contract. 5. Feeder Contract: Emphasizing the specific nature of the agreement, indicating that it pertains to the purchase and maintenance of feeder cattle specifically. Feeder contracts may differ from other types of livestock contracts, such as breeding or slaughter agreements. Different types or variations of the Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract may include: 1. Standard Feeder Contract: A commonly used agreement that encompasses general terms and conditions for the purchase and maintenance of feeder cattle in Iowa. 2. Customized Feeder Contract: A contract tailored or modified to meet the specific requirements of a particular buyer or seller. This may involve negotiating certain terms, such as feeding practices, health requirements, or genetic criteria. 3. Forward Pricing Feeder Contract: A contract that includes a price agreement for future delivery of feeder cattle. This type of contract allows buyers and sellers to lock in prices in advance to mitigate market volatility. 4. Value-Added Feeder Contract: A contract that involves additional value-added practices, such as specific feeding programs or breed requirements, to enhance the value or marketability of the feeder cattle. In summary, the Iowa Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive contract used in the livestock industry to govern the purchase and maintenance of feeder cattle in Iowa. It is important for both buyers and sellers to understand the terms, responsibilities, and types of contracts available to ensure a successful and mutually beneficial transaction.
