Purchase and Maintenance Agreement for Cattle - Feeder Contract
Definition and meaning
The Purchase and Maintenance Agreement for Cattle—Feeder Contract is a legally binding document between a cattle owner and a feeder. This agreement outlines the terms and conditions under which the feeder agrees to take ownership of cattle from the owner and care for them until they are sold. It includes specific details about the number and breed of cattle, purchase price, responsibilities for feeding and caring for the cattle, and the transfer of title.
Key components of the form
This agreement includes several important sections that clarify the responsibilities and expectations of both parties, such as:
- Cattle Purchased: Specifies the number and breed of cattle being sold.
- Final Weight of Cattle: Defines how the cattle's final weight will be assessed at the end of the agreement.
- Financing: Lays out the payment structure for the cattle purchased.
- Length of Feeding: Details the agreed period for which the feeder will care for the cattle.
- Purchase of Feed: Outlines the feed purchase arrangements between the owner and the feeder.
- Responsibility for Care and Maintenance: Clarifies care standards the feeder must adhere to.
- Termination of Agreement: States the conditions under which the agreement may be terminated.
How to complete a form
Completing the Purchase and Maintenance Agreement for Cattle—Feeder Contract involves several key steps:
- Gather Information: Collect necessary information such as the names and addresses of both parties, details about the cattle, and agreed financial terms.
- Complete the Agreement: Fill in the blanks in the agreement template. Ensure all sections are completed accurately, especially regarding the cattle's description and pricing.
- Review the Document: Both parties should carefully review the agreement to verify all terms are acceptable and clear.
- Sign and Notarize: Both parties need to sign the document in the presence of a notary public to make it legally binding.
Who should use this form
The Purchase and Maintenance Agreement for Cattle—Feeder Contract should be used by:
- Individuals or entities that own cattle and wish to sell them while ensuring proper care and feeding during the feeding period.
- Commercial feeders who specialize in raising and selling cattle and who require a formal agreement to outline their responsibilities.
Common mistakes to avoid when using this form
When completing the Purchase and Maintenance Agreement for Cattle—Feeder Contract, users should avoid the following mistakes:
- Inaccurate Details: Double-check all information, especially numbers and descriptions of the cattle.
- Incomplete Sections: Ensure that no sections are left blank, as this may lead to disputes later.
- Neglecting Signatures: Make sure that both parties sign the document in the presence of a notary public.
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FAQ
Also this week, CattleFax released their price expectations for 2020. They are forecasting finished steers to average 118 next year, with potential to top out near $130. 750 pound steers are estimated at an average of $146 and 550 pound steer calves at $165, both just slightly ahead of their 2019 averages.
A calf that weighs 500 pounds costs around $700. As compared to a heifer, bred heifer costs more. A bred heifer can cost around $1,300. Whereas matured cows can cost around $4,000 to $5,000 each.
A price of $160 per cwt on 550- to 600-pound calves generates $900-plus in steer calf revenue. (Remember, only half the calves are steers.)
Looking out to 2020, Brester said that given where the feeder cattle futures for next fall are sitting and factoring in the historical basis, 500-600 pound feeder calves could bring $165-$175 next October. 6-700 pound calves might range $155-$165. Also this week, CattleFax released their price expectations for 2020.
A calf that weighs 500 pounds costs around $700. As compared to a heifer, bred heifer costs more. A bred heifer can cost around $1,300.
It will take over a year (367 days) to grow a 500-pound calf to 1,000 pounds if its average daily weight gain is 1.5 pounds per day. Some exten sive forage-finishing systems may require a longer duration for calves to reach slaughter weight if forage quality and quantity restrict growth to no more than 1 pound per day.
The price for 550-pound weaned calves is expected to average $150 per cwt this year, in a range of $135 to $165. We believe the average break-even price for cow-calf producers is about $140, says CattleFax CEO Randy Blach. For the best producers, that breakeven is probably around $100.
Based on the 2019 budget, slaughter cows (1,200 pounds) are expected to average $50 per hundredweight, while 550 pounds steers and 520 heifers are expected to average $145 and $130 per hundredweight respectively.