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.
Indiana Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legal document that outlines the terms and conditions related to the purchase and subsequent care of cattle in Indiana. This agreement is essential for both cattle purchasers and sellers as it ensures a clear understanding of the responsibilities and obligations of each party. The agreement typically includes relevant keywords such as: 1. Indiana: This refers to the specific jurisdiction in which the contract is valid and applicable. Laws and regulations related to cattle purchase and maintenance can vary from state to state, so it is crucial to specify Indiana as the applicable jurisdiction. 2. Purchase: The agreement outlines the terms of the cattle purchase, including the number of cattle, the agreed-upon purchase price, and any specifications or requirements related to the cattle being purchased. 3. Maintenance: This keyword emphasizes that the agreement includes provisions related to the ongoing care and maintenance of the cattle. It outlines the responsibilities of the purchaser in terms of feed, water, medical treatment, and general welfare of the cattle. 4. Feeder Contract: Feeder contracts are a specific type of agreement that specifies the purpose of the purchased cattle, which is typically for feeding in order to prepare them for sale or further breeding. The agreement may include provisions related to the duration of the feeding period and the expected weight gain or condition of the cattle at the end of this period. Different types of Indiana Purchase and Maintenance Agreement for Cattle — Feeder Contract may exist depending on the specific needs and requirements of the parties involved. These may include variations in terms of responsibilities, payment arrangements, or any additional conditions agreed upon by both parties. It is important to consult legal professionals or experts in cattle contracts to ensure that the agreement includes all necessary provisions, abides by Indiana state laws, and adequately protects the rights and interests of both the cattle purchaser and seller.
