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 Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document used in the cattle industry to outline the terms and conditions of purchasing and maintaining cattle for feeding purposes. This agreement is crucial for establishing clear expectations and responsibilities between the buyer (purchaser) and the seller (feeder). The Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contract typically includes the following key elements: 1. Parties: This section identifies the legal names and addresses of both the purchaser and the feeder involved in the agreement. 2. Purchase and Delivery: Specifies the quantity, breed, weight, and specific identification of the cattle being purchased. It also outlines the agreed-upon purchase price and the date and location for delivery. 3. Payment Terms: Details the payment terms, such as whether it will be made in full upon delivery or in installments as agreed upon between the parties. It may also include penalties or interest in late payments. 4. Conditions of Maintenance: Describes the specific requirements for cattle maintenance, including feeding, housing, and medical care. It may also outline provisions for emergency veterinary services. 5. Ownership and Risk of Loss: Clarifies when the ownership of the cattle is transferred from the feeder to the purchaser and who bears the risk if any cattle are lost or die before the transfer of ownership. 6. Termination and Default: Defines the conditions under which either party can terminate the agreement. It may state the consequences of default, such as penalties or legal action. 7. Dispute Resolution: Provides a mechanism for resolving any disputes that may arise during the term of the agreement, such as arbitration or mediation. Types of Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contracts may vary depending on the specific needs and preferences of the parties involved. Some common variations may include: 1. Market-Based Contracts: These agreements stipulate that the purchase price is based on the prevailing market rates at the time of invoice or delivery. 2. Forward Contracts: These contracts allow for the purchase of cattle at a future date, specifying the quantity, breed, weight, and other terms at the time of agreement. 3. Custom Feeding Contracts: These contracts involve the feeder taking on the responsibility of feed, care, and maintenance of the cattle until they reach market weight or specified conditions. In summary, the Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contract is a vital legal document that establishes the terms and conditions between the purchaser and feeder in the cattle industry. It covers various aspects such as purchase, delivery, payment terms, maintenance requirements, ownership, termination, and dispute resolution. Different types of contracts exist, including market-based contracts, forward contracts, and custom feeding contracts, tailored to meet the specific needs of the parties involved.The Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document used in the cattle industry to outline the terms and conditions of purchasing and maintaining cattle for feeding purposes. This agreement is crucial for establishing clear expectations and responsibilities between the buyer (purchaser) and the seller (feeder). The Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contract typically includes the following key elements: 1. Parties: This section identifies the legal names and addresses of both the purchaser and the feeder involved in the agreement. 2. Purchase and Delivery: Specifies the quantity, breed, weight, and specific identification of the cattle being purchased. It also outlines the agreed-upon purchase price and the date and location for delivery. 3. Payment Terms: Details the payment terms, such as whether it will be made in full upon delivery or in installments as agreed upon between the parties. It may also include penalties or interest in late payments. 4. Conditions of Maintenance: Describes the specific requirements for cattle maintenance, including feeding, housing, and medical care. It may also outline provisions for emergency veterinary services. 5. Ownership and Risk of Loss: Clarifies when the ownership of the cattle is transferred from the feeder to the purchaser and who bears the risk if any cattle are lost or die before the transfer of ownership. 6. Termination and Default: Defines the conditions under which either party can terminate the agreement. It may state the consequences of default, such as penalties or legal action. 7. Dispute Resolution: Provides a mechanism for resolving any disputes that may arise during the term of the agreement, such as arbitration or mediation. Types of Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contracts may vary depending on the specific needs and preferences of the parties involved. Some common variations may include: 1. Market-Based Contracts: These agreements stipulate that the purchase price is based on the prevailing market rates at the time of invoice or delivery. 2. Forward Contracts: These contracts allow for the purchase of cattle at a future date, specifying the quantity, breed, weight, and other terms at the time of agreement. 3. Custom Feeding Contracts: These contracts involve the feeder taking on the responsibility of feed, care, and maintenance of the cattle until they reach market weight or specified conditions. In summary, the Kentucky Purchase and Maintenance Agreement for Cattle — Feeder Contract is a vital legal document that establishes the terms and conditions between the purchaser and feeder in the cattle industry. It covers various aspects such as purchase, delivery, payment terms, maintenance requirements, ownership, termination, and dispute resolution. Different types of contracts exist, including market-based contracts, forward contracts, and custom feeding contracts, tailored to meet the specific needs of the parties involved.
