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 Oklahoma Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legal document used in the state of Oklahoma for the purchase and maintenance of cattle between a buyer (feeder) and a seller (owner). This agreement outlines the terms and conditions of the transaction, ensuring both parties are aware of their obligations and rights. In this contract, the buyer agrees to purchase a specified number of cattle from the seller. The contract may specify the type and breed of cattle, their weight, age, or any other relevant details. The purchase price, payment terms, and due date will also be clearly mentioned. Additionally, the agreement covers the maintenance and care of the purchased cattle. It involves the buyer's responsibility to feed, house, and provide necessary healthcare for the animals during the agreed-upon time frame. The contract may establish guidelines for the type of feed, medical treatments, and other management practices that need to be followed. One type of Oklahoma Purchase and Maintenance Agreement for Cattle — Feeder Contract is the Cash Feeder Contract. Under this agreement, the buyer pays the full purchase price upfront and assumes complete ownership and responsibility for the cattle once the transaction is completed. Another type is the Deferred Payment Feeder Contract. In this case, the buyer makes a partial payment initially and agrees to pay the remaining amount at a later date specified in the contract. The ownership of the cattle may be transferred to the buyer once the full payment is made. It's essential for both the seller and buyer to thoroughly review the agreement before signing to ensure all necessary provisions are included. This contract helps establish a transparent and legally binding relationship between the parties involved, protecting the interests of both the buyer and seller.The Oklahoma Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legal document used in the state of Oklahoma for the purchase and maintenance of cattle between a buyer (feeder) and a seller (owner). This agreement outlines the terms and conditions of the transaction, ensuring both parties are aware of their obligations and rights. In this contract, the buyer agrees to purchase a specified number of cattle from the seller. The contract may specify the type and breed of cattle, their weight, age, or any other relevant details. The purchase price, payment terms, and due date will also be clearly mentioned. Additionally, the agreement covers the maintenance and care of the purchased cattle. It involves the buyer's responsibility to feed, house, and provide necessary healthcare for the animals during the agreed-upon time frame. The contract may establish guidelines for the type of feed, medical treatments, and other management practices that need to be followed. One type of Oklahoma Purchase and Maintenance Agreement for Cattle — Feeder Contract is the Cash Feeder Contract. Under this agreement, the buyer pays the full purchase price upfront and assumes complete ownership and responsibility for the cattle once the transaction is completed. Another type is the Deferred Payment Feeder Contract. In this case, the buyer makes a partial payment initially and agrees to pay the remaining amount at a later date specified in the contract. The ownership of the cattle may be transferred to the buyer once the full payment is made. It's essential for both the seller and buyer to thoroughly review the agreement before signing to ensure all necessary provisions are included. This contract helps establish a transparent and legally binding relationship between the parties involved, protecting the interests of both the buyer and seller.
