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 Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and maintenance of cattle in Ohio. This agreement is crucial for establishing a clear understanding between the buyer and seller in the cattle industry. The purpose of the Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract is to clarify the responsibilities of each party involved in the transaction, including the buyer who is purchasing the feeder cattle and the seller who is responsible for their maintenance. By outlining these roles and obligations, this agreement ensures a smooth and transparent process for both parties. Key terms that may be included in the Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract are: 1. Purchase terms: This section includes details on the number, weight, breed, and price per head of the feeder cattle being purchased. It also outlines the payment terms, such as the amount to be paid upfront and any installment plans. 2. Health and condition: This clause ensures that the seller guarantees the health and condition of the cattle at the time of purchase, and that they have been properly vaccinated and tested for diseases according to industry standards. 3. Maintenance responsibilities: This section specifies the obligations of the seller in terms of feeding, watering, and providing veterinary care to the cattle during the maintenance period. It may also include provisions for transportation and handling practices. 4. Insurance and liability: This clause addresses the issue of insurance coverage, stipulating who will be responsible for insuring the cattle against loss, injury, or damage. It may further outline the liability in case of accidents or incidents occurring during the maintenance period. 5. Termination conditions: This provision allows for the termination of the agreement under certain circumstances, such as non-payment or breach of contract by either party. It may also outline the process for resolving disputes or seeking legal remedies. Types of Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contracts may vary depending on specific circumstances and the preferences of the involved parties. For instance, there might be different contracts for the purchase and maintenance of feeder cattle for beef production versus dairy production. Other variations could include contracts for the purchase and maintenance of different cattle breeds, contract length (short-term or long-term), contract volume (small-scale or large-scale), and contract exclusivity (sole buyer or multiple buyers). In conclusion, the Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract is a crucial document in the cattle industry, ensuring a fair and transparent process for buying and maintaining feeder cattle. This agreement protects the buyer and seller by clarifying their responsibilities and the terms of the transaction.The Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and maintenance of cattle in Ohio. This agreement is crucial for establishing a clear understanding between the buyer and seller in the cattle industry. The purpose of the Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract is to clarify the responsibilities of each party involved in the transaction, including the buyer who is purchasing the feeder cattle and the seller who is responsible for their maintenance. By outlining these roles and obligations, this agreement ensures a smooth and transparent process for both parties. Key terms that may be included in the Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract are: 1. Purchase terms: This section includes details on the number, weight, breed, and price per head of the feeder cattle being purchased. It also outlines the payment terms, such as the amount to be paid upfront and any installment plans. 2. Health and condition: This clause ensures that the seller guarantees the health and condition of the cattle at the time of purchase, and that they have been properly vaccinated and tested for diseases according to industry standards. 3. Maintenance responsibilities: This section specifies the obligations of the seller in terms of feeding, watering, and providing veterinary care to the cattle during the maintenance period. It may also include provisions for transportation and handling practices. 4. Insurance and liability: This clause addresses the issue of insurance coverage, stipulating who will be responsible for insuring the cattle against loss, injury, or damage. It may further outline the liability in case of accidents or incidents occurring during the maintenance period. 5. Termination conditions: This provision allows for the termination of the agreement under certain circumstances, such as non-payment or breach of contract by either party. It may also outline the process for resolving disputes or seeking legal remedies. Types of Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contracts may vary depending on specific circumstances and the preferences of the involved parties. For instance, there might be different contracts for the purchase and maintenance of feeder cattle for beef production versus dairy production. Other variations could include contracts for the purchase and maintenance of different cattle breeds, contract length (short-term or long-term), contract volume (small-scale or large-scale), and contract exclusivity (sole buyer or multiple buyers). In conclusion, the Ohio Purchase and Maintenance Agreement for Cattle — Feeder Contract is a crucial document in the cattle industry, ensuring a fair and transparent process for buying and maintaining feeder cattle. This agreement protects the buyer and seller by clarifying their responsibilities and the terms of the transaction.
