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 Oregon Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legal document that outlines the terms and conditions for purchasing and maintaining cattle specifically for the purpose of feeding and growing them to maturity. This agreement is commonly used by farmers, ranchers, and cattle buyers in Oregon to ensure a clear understanding between all parties involved in the transaction. Keywords: Oregon, Purchase and Maintenance Agreement, Cattle, Feeder Contract, legal document, terms and conditions, purchasing, maintaining, feeding, growing, maturity, farmers, ranchers, cattle buyers, transaction. There are generally two types of Oregon Purchase and Maintenance Agreements for Cattle — Feeder Contracts: 1. Purchase Agreement: This type of contract focuses mainly on the purchase aspect of the agreement. It includes details such as the number and breed of cattle being purchased, the agreed-upon price, payment terms, delivery arrangements, and any warranties or guarantees provided by the seller. This contract is crucial to protect both the buyer and the seller, ensuring transparency in the cattle purchase transaction. 2. Maintenance Agreement: The maintenance agreement portion of the contract covers the responsibilities and obligations of the buyer in terms of caring for the purchased cattle. It outlines the provisions for feeding, healthcare, and welfare of the cattle during the agreed-upon maintenance period. The agreement may also specify any specific requirements for the cattle's living conditions, medical treatments, record-keeping, and potential penalties or remedies for breaching the agreement. Both types of Oregon Purchase and Maintenance Agreements for Cattle — Feeder Contracts serve as essential legal documents that establish clarity, protection, and accountability for all parties involved in the cattle buying and raising process. They aim to ensure that the cattle's well-being, as well as the financial interests of the buyer and seller, are upheld throughout the transaction and maintenance period.
