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.
North Dakota 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 North Dakota regarding the purchase and maintenance of cattle. This agreement is specifically designed for feeder cattle, which are young cattle that are fed a high-energy diet to promote growth and development. Keywords: North Dakota, Purchase and Maintenance Agreement, Cattle, Feeder Contract, buyer, seller, terms and conditions, young cattle, high-energy diet, growth and development. Different types of North Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract include: 1. Standard Feeder Contract: This contract is the most common type and covers the basic terms and conditions of buying and maintaining feeder cattle. It includes clauses related to purchase price, payment terms, delivery, and care instructions for the cattle. 2. Custom Feeder Contract: This contract is tailored to the specific needs and requirements of the buyer or seller. It may include additional provisions, such as specific feeding regimens, health guarantees, or branding requirements. 3. Retained Ownership Feeder Contract: This type of contract allows the seller to retain partial ownership of the cattle during the feeding period. The buyer assumes responsibility for the care and maintenance of the cattle but shares the future profits with the seller once the cattle are sold. 4. Value-added Feeder Contract: This contract incorporates additional criteria, such as breed, age, or health status, which can enhance the value of the feeder cattle. The buyer may offer a premium price based on these added attributes. 5. Forward Contract: A forward contract allows a buyer to secure feeder cattle for a future delivery date at a predetermined price. This type of contract provides price stability and allows buyers to plan their feeding operations in advance. In conclusion, the North Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document that establishes the terms and conditions for the purchase and maintenance of feeder cattle in North Dakota. Different types of contracts are available to cater to specific needs and requirements of buyers and sellers, such as standard feeder contracts, custom contracts, retained ownership contracts, value-added contracts, and forward contracts.North Dakota 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 North Dakota regarding the purchase and maintenance of cattle. This agreement is specifically designed for feeder cattle, which are young cattle that are fed a high-energy diet to promote growth and development. Keywords: North Dakota, Purchase and Maintenance Agreement, Cattle, Feeder Contract, buyer, seller, terms and conditions, young cattle, high-energy diet, growth and development. Different types of North Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract include: 1. Standard Feeder Contract: This contract is the most common type and covers the basic terms and conditions of buying and maintaining feeder cattle. It includes clauses related to purchase price, payment terms, delivery, and care instructions for the cattle. 2. Custom Feeder Contract: This contract is tailored to the specific needs and requirements of the buyer or seller. It may include additional provisions, such as specific feeding regimens, health guarantees, or branding requirements. 3. Retained Ownership Feeder Contract: This type of contract allows the seller to retain partial ownership of the cattle during the feeding period. The buyer assumes responsibility for the care and maintenance of the cattle but shares the future profits with the seller once the cattle are sold. 4. Value-added Feeder Contract: This contract incorporates additional criteria, such as breed, age, or health status, which can enhance the value of the feeder cattle. The buyer may offer a premium price based on these added attributes. 5. Forward Contract: A forward contract allows a buyer to secure feeder cattle for a future delivery date at a predetermined price. This type of contract provides price stability and allows buyers to plan their feeding operations in advance. In conclusion, the North Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document that establishes the terms and conditions for the purchase and maintenance of feeder cattle in North Dakota. Different types of contracts are available to cater to specific needs and requirements of buyers and sellers, such as standard feeder contracts, custom contracts, retained ownership contracts, value-added contracts, and forward contracts.
