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.
Title: Illinois Purchase and Maintenance Agreement for Cattle — Feeder Contract: Types and Detailed Description Introduction: The Illinois Purchase and Maintenance Agreement for Cattle — Feeder Contract is an essential legal document that governs the transactional relationship between cattle buyers and feeder contract owners in the state of Illinois. This comprehensive agreement outlines the terms and conditions for the purchase, maintenance, and care of feeder cattle. To better understand the intricacies of this contract, let's delve into its types and explore a detailed description of its contents. Types of Illinois Purchase and Maintenance Agreement for Cattle — Feeder Contract: 1. Standard Illinois Purchase and Maintenance Agreement: — This type of contract encompasses all the fundamental provisions for the purchase and maintenance of feeder cattle, covering aspects such as pricing, delivery, responsibilities, and feeding arrangements. — It ensures both parties are protected and have a thorough understanding of their obligations throughout the contractual period. — Can be used for various types of cattle, including beef and dairy. 2. Customized Illinois Purchase and Maintenance Agreement: — This version of the contract is tailored to meet specific requirements or circumstances, accommodating additional clauses and modifications as mutually agreed upon. — Suited for situations where parties have unique needs and wish to clarify specific terms related to pricing structures, delivery schedules, or maintenance responsibilities. — Offers flexibility and the opportunity to address any unique concerns or individual preferences. Detailed Description of Illinois Purchase and Maintenance Agreement for Cattle — Feeder Contract: 1. Parties involved— - Clearly identifies and defines the roles and responsibilities of the buyer and the feeder contract owner. — States their full legal names, addresses, contact information, and any relevant identification numbers, ensuring complete legal clarity. 2. Cattle Description: — Provides a detailed description of the cattle being sold, including breed, sex, weight range, or any specific genetic traits or characteristics. — Ensures transparency and eliminates ambiguity regarding the specific animals involved in the transaction. 3. Purchase and Payment Terms: — Defines the purchase price per unit or per pound and outlines the payment terms and conditions, including any applicable discounts, payment schedules, or acceptable payment methods. — Ensures clarity and avoids payment-related disputes. 4. Delivery terms: — Specifies the delivery location, date, and method (e.g., self-transportation or third-party carrier) agreed upon by both parties. — Clearly outlines the responsibilities, liabilities, and associated costs related to transportation. 5. Maintenance and Feeding Terms: — Establishes the responsibilities of the feeder contract owner regarding cattle maintenance, health care, feeding regimes, and any required veterinary services. — Sets guidelines for the type and quality of feed, water supply, vaccination schedules, and any other necessary herd management practices. 6. Insurance and Liability: — Addresses the issue of insurance coverage for the cattle during the contractual period, specifying who bears responsibility for insuring the animals against potential risks and losses. — Allocates liability for any unforeseen circumstances, such as illness, injury, or death of the cattle, outlining how such incidents should be handled. 7. Termination and Dispute Resolution: — Outlines the conditions under which either party may terminate the agreement, including breach of contract, non-payment, or failure to meet maintenance standards. — Provides a framework for dispute resolution, specifying preferred methods (e.g., mediation or arbitration) and the jurisdiction where legal actions must be brought. Conclusion: The Illinois Purchase and Maintenance Agreement for Cattle — Feeder Contract is a crucial document that ensures a harmonious business relationship between buyers and feeder contract owners. Understanding its various types and the detailed provisions within each type is essential for navigating cattle transactions in Illinois effectively.
