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 New Mexico Purchase and Maintenance Agreement for Cattle-Feeder Contract is a legally binding document that outlines the terms and conditions between a buyer (purchaser) and a seller (feeder) in the cattle industry. This agreement pertains specifically to the state of New Mexico and serves as a key instrument in regulating the purchase and maintenance of cattle. The purpose of this contract is to establish a clear understanding regarding the responsibilities and obligations of both parties involved in the transaction, ensuring transparency and minimizing potential disputes. It includes comprehensive information about the cattle, pricing, delivery, health requirements, and maintenance protocols. This particular agreement caters to different types of cattle-feeding arrangements, such as: 1. Permanent Feeding Agreement: This type of contract is designed for a long-term feeding relationship, typically lasting several months or even years. It involves the purchase and feeding of cattle by the feeder over an extended period, with agreed-upon maintenance responsibilities. 2. Short-Term Feeding Agreement: This type of contract is applicable when the buyer requires temporary feeding services. It could be for a specific period or until the cattle reach a targeted weight. The agreement covers the feed regime, payment terms, and other conditions for the specified duration. 3. Custom Feeding Agreement: In some cases, buyers may choose to enter into a custom feeding agreement, wherein the purchaser provides the cattle while the feeder manages their maintenance and feeding. This type of arrangement allows the buyer to retain ownership of the cattle while outsourcing the feeding and maintenance tasks to the feeder. The New Mexico Purchase and Maintenance Agreement for Cattle-Feeder Contract is essential for ensuring a smooth transaction and maintaining compliance with state regulations. By clearly defining the responsibilities, expectations, and legal implications, this agreement helps safeguard the interests of both buyers and feeders, fostering a mutually beneficial business relationship within the New Mexico cattle industry.The New Mexico Purchase and Maintenance Agreement for Cattle-Feeder Contract is a legally binding document that outlines the terms and conditions between a buyer (purchaser) and a seller (feeder) in the cattle industry. This agreement pertains specifically to the state of New Mexico and serves as a key instrument in regulating the purchase and maintenance of cattle. The purpose of this contract is to establish a clear understanding regarding the responsibilities and obligations of both parties involved in the transaction, ensuring transparency and minimizing potential disputes. It includes comprehensive information about the cattle, pricing, delivery, health requirements, and maintenance protocols. This particular agreement caters to different types of cattle-feeding arrangements, such as: 1. Permanent Feeding Agreement: This type of contract is designed for a long-term feeding relationship, typically lasting several months or even years. It involves the purchase and feeding of cattle by the feeder over an extended period, with agreed-upon maintenance responsibilities. 2. Short-Term Feeding Agreement: This type of contract is applicable when the buyer requires temporary feeding services. It could be for a specific period or until the cattle reach a targeted weight. The agreement covers the feed regime, payment terms, and other conditions for the specified duration. 3. Custom Feeding Agreement: In some cases, buyers may choose to enter into a custom feeding agreement, wherein the purchaser provides the cattle while the feeder manages their maintenance and feeding. This type of arrangement allows the buyer to retain ownership of the cattle while outsourcing the feeding and maintenance tasks to the feeder. The New Mexico Purchase and Maintenance Agreement for Cattle-Feeder Contract is essential for ensuring a smooth transaction and maintaining compliance with state regulations. By clearly defining the responsibilities, expectations, and legal implications, this agreement helps safeguard the interests of both buyers and feeders, fostering a mutually beneficial business relationship within the New Mexico cattle industry.
