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 South Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and ongoing care of cattle between a buyer and a seller in South Dakota. This agreement is specific to the cattle industry and serves as a vital tool to ensure a smooth transaction and a mutually beneficial business relationship. The South Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract encompasses various aspects related to the purchase, maintenance, and feeding of cattle, providing clarity and protection for both parties involved. It is typically used in situations where a buyer is interested in procuring feeder cattle for the purpose of feeding and rearing them until they gain market weight. Key provisions included in this contract may cover the purchase price of the cattle, delivery terms, responsibilities for animal care and maintenance, feed and water requirements, health and vaccination protocols, record-keeping obligations, contract termination conditions, and dispute resolution methods. Different types or variations of South Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contracts may arise depending on specific circumstances or preferences of the parties involved in the agreement. Some variations may include: 1. Standard South Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract: This is the most common type of contract used for purchasing and maintaining feeder cattle in South Dakota. It includes standard provisions and requirements typically applicable to this type of transaction. 2. Customized or Tailored South Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract: In some cases, parties may choose to customize the agreement to suit their unique needs or specific production methods. This type of contract includes additional or modified clauses to address specific concerns or requirements of the buyer or seller. 3. Multi-Party South Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contract: Certain situations may involve multiple buyers or sellers collaborating on a feeder cattle transaction. In such cases, a multi-party agreement is created to establish the roles, responsibilities, and obligations of each party involved, as well as how profits and costs will be shared. It is important to note that the specific names or titles for variations of South Dakota Purchase and Maintenance Agreement for Cattle — Feeder Contracts may vary depending on the terminology adopted by industry participants or legal professionals in South Dakota. However, the overall purpose and content of these agreements remain consistent.
