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.
Pennsylvania Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for purchasing and maintaining cattle in the state of Pennsylvania. This agreement is primarily used by farmers, ranchers, and agricultural businesses to establish clear guidelines and responsibilities in the buying and care of feeder cattle. The Pennsylvania Purchase and Maintenance Agreement for Cattle — Feeder Contract typically includes the following key provisions: 1. Parties: It identifies the buyer and seller involved in the transaction, along with their contact information and any additional details needed for identification. 2. Description of Cattle: This section provides a detailed description of the cattle being purchased, including the breed, gender, age, weight, and any other relevant characteristics. 3. Purchase Price: The agreement specifies the agreed-upon purchase price for the cattle, as well as any terms regarding payment methods, installment plans, or other financial arrangements. 4. Delivery and Pickup: It outlines the agreed-upon date and location for the delivery of the cattle, along with any specific instructions for the transportation and handling of the animals. 5. Inspection and Documentation: This section states that the buyer has the right to inspect the cattle upon delivery and that the seller is responsible for providing accurate documentation, such as health certificates or other necessary paperwork. 6. Maintenance and Care: The agreement includes provisions related to the care and feeding of the cattle, including the responsibility for maintaining appropriate shelter, pasture, and veterinary care. It may also include any specific dietary requirements or feeding schedules. 7. Risk of Loss: It addresses the risk of loss associated with the cattle, specifying at what point the responsibility for any injury, illness, or death of the animals shifts from the seller to the buyer. 8. Termination and Dispute Resolution: The contract may include provisions for terminating the agreement, such as breach of contract or failure to meet agreed-upon terms. It may also outline the process for resolving disputes, such as mediation or arbitration. Different types of Pennsylvania Purchase and Maintenance Agreement for Cattle — Feeder Contracts may vary in terms of specific provisions or additional clauses. For instance, some contracts may include language regarding the use of antibiotics or growth hormones, while others may outline responsibilities for testing the cattle for certain diseases. The exact content of the agreement can be customized based on the specific needs and requirements of the buyer and seller.
