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.
Rhode Island Purchase and Maintenance Agreement for Cattle — Feeder Contract: A Comprehensive Overview In Rhode Island, the Purchase and Maintenance Agreement for Cattle — Feeder Contract is an important legal document that facilitates the purchase and maintenance of cattle for feeding purposes. This agreement outlines the specific terms and conditions between the cattle owner/seller (referred to as the "Seller") and the cattle buyer (referred to as the "Buyer") for the acquisition, care, and feeding of cattle. The Rhode Island Purchase and Maintenance Agreement for Cattle — Feeder Contract typically includes the following key elements: 1. Parties Involved: This section provides the names and contact details of the Seller and Buyer, ensuring both parties are clearly identified. It may also include the names of any witnesses or representatives involved in the agreement. 2. Description of Cattle: Precise details are provided about the cattle being sold, including breed, gender, age, weight, and any unique identifying features. This section ensures clarity regarding the specific cattle being purchased. 3. Purchase Price and Payment Terms: The agreement clearly states the total purchase price for the cattle and outlines the payment terms, such as the method of payment (cash, check, electronic transfer), payment schedule, and any applicable interest or late fees. 4. Delivery Terms: This section specifies whether the Seller or Buyer is responsible for the transportation of the cattle and the agreed location and date of delivery. It may also include provisions for any potential delays, inspection processes, or quarantine requirements. 5. Maintenance Responsibility: The agreement defines the responsibilities and obligations of both parties concerning the care, feeding, and welfare of the cattle. This includes provisions for feeding schedules, access to clean water, health requirements (vaccinations, deforming, etc.), and shelter provisions. 6. Veterinary Care and Expenses: This clause outlines the party responsible for veterinary care, including routine check-ups, necessary treatments, and emergency situations. It also specifies the allocation of such expenses between the Seller and Buyer, ensuring a fair distribution of financial responsibilities. 7. Insurance: This section addresses the question of cattle insurance, including who bears the risk of loss or injury during the agreement period and whether insurance coverage is required or encouraged. 8. Default and Termination: The agreement may include clauses that address default and termination provisions. These provisions typically define the consequences of breaching the contract, such as penalties, legal actions, or the option to terminate the agreement. 9. Governing Law: This section clarifies that the agreement follows the legal framework of Rhode Island and ensures that any disputes or legal actions will be resolved in accordance with the state's laws. Types of Rhode Island Purchase and Maintenance Agreement for Cattle — Feeder Contract: 1. Individual Purchase Agreement: This type of agreement is used when an individual cattle buyer wishes to purchase cattle for feeding purposes directly from a cattle owner or seller. 2. Commercial Purchase Agreement: This variant caters to businesses, feedlots, or agricultural enterprises engaged in the buying and feeding of cattle. It involves larger-scale transactions and may include additional clauses specific to commercial farming practices and regulations. In conclusion, the Rhode Island Purchase and Maintenance Agreement for Cattle — Feeder Contract is a crucial legal document that establishes the terms and responsibilities for cattle purchase and maintenance in Rhode Island. It ensures a clear understanding between the Seller and Buyer, protecting the interests of all parties involved in the cattle trade.
