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.
A detailed description of the Alaska Purchase and Maintenance Agreement for Cattle — Feeder Contract: The Alaska Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding contract that outlines the terms and conditions between a buyer and a seller for the purchase and ongoing maintenance of cattle in the state of Alaska. This agreement is commonly used in the agricultural industry to facilitate the buying and raising of cattle for commercial purposes. The primary purpose of this agreement is to establish a clear understanding between the buyer and the seller regarding the purchase, care, and feeding of the cattle. It specifies important details such as the number of cattle being purchased, their breed, weight range, and any specific health requirements. The contract also outlines the payment terms, including the total purchase price and any additional costs associated with the cattle. One variation of the Alaska Purchase and Maintenance Agreement for Cattle — Feeder Contract is the "Full Care Agreement." In this agreement, the seller takes full responsibility for the maintenance, feeding, and overall care of the cattle until they reach a specified weight or age. This type of contract is commonly used when the buyer wants to minimize their involvement in the daily care of the cattle. Another variation is the "Partial Care Agreement," where both the buyer and the seller share the responsibilities of maintaining and feeding the cattle. This type of contract is ideal when the buyer wants to be more involved in the care of the cattle but still relies on the expertise and resources of the seller. Key terms and conditions included in the Alaska Purchase and Maintenance Agreement for Cattle — Feeder Contract may include: 1. Purchase Price: Specifies the total amount to be paid by the buyer for the cattle. 2. Payment Terms: Outlines the schedule and method of payment, including down payments, installments, or lump-sum payment. 3. Maintenance and Feeding: Details the responsibilities of the buyer and the seller regarding the care, feeding, and health maintenance of the cattle. 4. Insurance: Addresses the need for insurance coverage for the cattle, typically including mortality insurance to protect against unforeseen events. 5. Delivery: Specifies the location, date, and method of delivery of the cattle. 6. Indemnification: Outlines the liability and indemnification of both parties in case of any damages, injuries, or losses related to the cattle. 7. Dispute Resolution: Provides a mechanism for resolving any disputes or disagreements that may arise during the course of the contract. It is important to note that specific variations and clauses within the Alaska Purchase and Maintenance Agreement for Cattle — Feeder Contract may vary depending on the preferences of both the buyer and the seller. It is advisable to consult with legal professionals or agricultural experts to ensure all necessary provisions are included and comply with local laws and regulations.
