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 Washington 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 within the state of Washington. This agreement is specifically designed for feeder contracts, which refer to agreements between a cattle buyer and seller where the buyer purchases the cattle as feeders and is responsible for their upkeep and feeding until they reach a desired weight. Key terms covered in the Washington Purchase and Maintenance Agreement for Cattle — Feeder Contract may include the purchase price, payment terms, identification and description of the cattle, delivery and pickup location, and the responsibilities of both the buyer and seller. Under this contract, the buyer agrees to purchase a specified number of cattle as feeders from the seller. The agreement may also include provisions for the seller to provide additional services such as dehorning, vaccination, and proper documentation. These services aim to ensure the health and well-being of the cattle during the maintenance period. It is essential to note that there might be different types of Washington Purchase and Maintenance Agreement for Cattle — Feeder Contracts based on factors such as the duration of the maintenance period, the type of cattle involved (e.g., beef or dairy), and specific requirements set forth by the buyer or seller. For instance, one type of feeder contract could be a short-term agreement, which covers a maintenance period of a few weeks to a few months. Another type could be a long-term agreement, spanning several months or even years. In summary, the Washington Purchase and Maintenance Agreement for Cattle — Feeder Contract is a vital legal document that outlines the terms and conditions for purchasing and maintaining cattle in Washington state. It ensures clarity and protection for both buyers and sellers during the feeder contract process, creating a mutually beneficial agreement.The Washington 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 within the state of Washington. This agreement is specifically designed for feeder contracts, which refer to agreements between a cattle buyer and seller where the buyer purchases the cattle as feeders and is responsible for their upkeep and feeding until they reach a desired weight. Key terms covered in the Washington Purchase and Maintenance Agreement for Cattle — Feeder Contract may include the purchase price, payment terms, identification and description of the cattle, delivery and pickup location, and the responsibilities of both the buyer and seller. Under this contract, the buyer agrees to purchase a specified number of cattle as feeders from the seller. The agreement may also include provisions for the seller to provide additional services such as dehorning, vaccination, and proper documentation. These services aim to ensure the health and well-being of the cattle during the maintenance period. It is essential to note that there might be different types of Washington Purchase and Maintenance Agreement for Cattle — Feeder Contracts based on factors such as the duration of the maintenance period, the type of cattle involved (e.g., beef or dairy), and specific requirements set forth by the buyer or seller. For instance, one type of feeder contract could be a short-term agreement, which covers a maintenance period of a few weeks to a few months. Another type could be a long-term agreement, spanning several months or even years. In summary, the Washington Purchase and Maintenance Agreement for Cattle — Feeder Contract is a vital legal document that outlines the terms and conditions for purchasing and maintaining cattle in Washington state. It ensures clarity and protection for both buyers and sellers during the feeder contract process, creating a mutually beneficial agreement.
