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 Kansas Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legal agreement that outlines the terms and conditions between the buyer and seller in the cattle industry. This agreement is specifically tailored towards the purchase, maintenance, and feeding of cattle in the state of Kansas. The main purpose of this agreement is to provide both parties with a clear understanding of their respective roles and responsibilities throughout the cattle feeding process. It covers important aspects such as cattle selection, purchase price, feeding regime, maintenance costs, and ownership transfer. The agreement typically starts with a detailed description of the cattle being purchased, including breed, age, weight, and health condition. It also outlines the agreed-upon purchase price and any applicable adjustments based on market fluctuations. Maintenance costs play a crucial role in this agreement, as it specifies how these expenses will be shared between the buyer and seller. This includes costs related to feed, supplements, veterinary care, and other necessary services to ensure the proper growth and health of the cattle. Ownership transfer is a significant aspect of the agreement, as it determines when the buyer officially takes ownership of the cattle. It may specify a specific weight or timeline for transfer, depending on the type of cattle being purchased. Different types of Kansas Purchase and Maintenance Agreement for Cattle — Feeder Contract may include: 1. Steer Feeder Contract: This type of agreement focuses on the purchase and feeding of steers, which are castrated male cattle primarily raised for beef production. 2. Heifer Feeder Contract: This agreement pertains to the purchase and feeding of heifers, which are young female cattle that have not yet given birth. Heifers are often raised to become breeding cows. 3. Bull Feeder Contract: This type of agreement revolves around the purchase and feeding of bulls, which are intact male cattle used for breeding purposes. 4. Holstein Feeder Contract: This agreement is specific to the purchase and feeding of Holstein cattle, a breed primarily known for its milk production. Holstein steers are often raised for beef. In conclusion, the Kansas Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document that ensures a clear understanding between buyer and seller regarding the purchase, maintenance, and feeding of cattle in the state of Kansas. It provides clarity on various aspects such as cattle selection, purchase price, maintenance costs, and ownership transfer. Different types of this agreement may exist, focusing on specific categories of cattle such as steers, heifers, bulls, or Holsteins.The Kansas Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legal agreement that outlines the terms and conditions between the buyer and seller in the cattle industry. This agreement is specifically tailored towards the purchase, maintenance, and feeding of cattle in the state of Kansas. The main purpose of this agreement is to provide both parties with a clear understanding of their respective roles and responsibilities throughout the cattle feeding process. It covers important aspects such as cattle selection, purchase price, feeding regime, maintenance costs, and ownership transfer. The agreement typically starts with a detailed description of the cattle being purchased, including breed, age, weight, and health condition. It also outlines the agreed-upon purchase price and any applicable adjustments based on market fluctuations. Maintenance costs play a crucial role in this agreement, as it specifies how these expenses will be shared between the buyer and seller. This includes costs related to feed, supplements, veterinary care, and other necessary services to ensure the proper growth and health of the cattle. Ownership transfer is a significant aspect of the agreement, as it determines when the buyer officially takes ownership of the cattle. It may specify a specific weight or timeline for transfer, depending on the type of cattle being purchased. Different types of Kansas Purchase and Maintenance Agreement for Cattle — Feeder Contract may include: 1. Steer Feeder Contract: This type of agreement focuses on the purchase and feeding of steers, which are castrated male cattle primarily raised for beef production. 2. Heifer Feeder Contract: This agreement pertains to the purchase and feeding of heifers, which are young female cattle that have not yet given birth. Heifers are often raised to become breeding cows. 3. Bull Feeder Contract: This type of agreement revolves around the purchase and feeding of bulls, which are intact male cattle used for breeding purposes. 4. Holstein Feeder Contract: This agreement is specific to the purchase and feeding of Holstein cattle, a breed primarily known for its milk production. Holstein steers are often raised for beef. In conclusion, the Kansas Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document that ensures a clear understanding between buyer and seller regarding the purchase, maintenance, and feeding of cattle in the state of Kansas. It provides clarity on various aspects such as cattle selection, purchase price, maintenance costs, and ownership transfer. Different types of this agreement may exist, focusing on specific categories of cattle such as steers, heifers, bulls, or Holsteins.
