Cattle Feeding Contract

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Cattle Feeding Contract

A Brief Introduction of Cattle Feeding Contract

Many cattle owners or ranchers want their cattle to get fed in a cattle shed. There are many feedyards available that promise good ingredients or the cattle. In comparison to proper ownership, Custom Cattle Feeding contracts are getting more popular with time. Different cattle feeders provide different services to beat the competition. The owner has many options to choose from.

An owner should be very clear about which feed will be the best option for the cattle. The whole process of custom feeding is a little complicated which requires detailed research about the state you live in. While giving the cattle to a custom cattle feeder, the owner must record the health condition of the cattle. Documenting details like health, weight and genetic background is important for both parties signing a Cattle Feeding Contract. This Contract can also be called as Custom Cattle Feeding Contract and Cattle Feeding Agreement.

The agreement contains all the roles and responsibilities of the feeder in a precise manner. This helps both parties from any future conflict or argument. The feeder or feedlot operator helps the owner with readying the cattle for selling as beef but the operator gets paid as per the contract and not as per the sell.

Who Takes the Cattle Feeding Contract?

This contract sets the responsibilities between a cattle owner and a commercial feedlot operator. This contract is intended for the feeding and fattening of cattle. The services provided by the feedlot operator need not be generic. They could be customized according to the needs of the owner. That is why, this is called a custom feeding contract because custom cattle feeding equipment could be used in this process. The feedlot operator is usually a fixed sum even though the cattle are meant for sale. Before slaughtering them, the feeder takes care of the cattle.

For that purpose, this agreement is signed between a ranch owner and a feeder. The feeder may be an individual or a company

Purpose of the Cattle Feeding Contract

The agreement is used when the owner of cattle wants to give all responsibilities to a feeder or feedlot operator. The purpose of the agreement is to ensure that all rules and conditions of their partnership are well documented and there are no conflicts and confusion. An oral agreement has a risk, as there will be no proof of the agreement However, a written agreement can work as a proof for both parties in case of any breach.

  • The agreement ensures both parties are protected by the state laws by adding all the terms and conditions of the agreement so that they perform their contractual obligations.
  • It lists out all the responsibilities of both parties
  • It can work as a guide for the feeder as to what is permitted and not permitted during the contract
  • It contains termination or cancellation terms
  • It tells the feeder about the actual requirement of the owner

Contents of the Cattle Feeding Contract

A standard cattle feeding agreement template contains the following provisions

  • Details of both the parties
  • Details of cattle for feeding including the types of cattle
  • Weight of the feed accounting for shrinking conditions
  • Cost of gain to be invoiced
  • Discounts and penalties for weight loss during feeding of cattle
  • Discounts for under-gaining weight
  • Terms and conditions for fee structures in cost plus method
  • Billing and payment including the cycle and the dates
  • Cattle to be left and removed duration
  • Terms of inspection
  • Termination and dispute resolution

How to Draft the Cattle Feeding Contract

When drafting a cattle feed agreement, some things to be kept in mind are

  • Retention of ownership of the cattle
  • The count of cattle that the feeder shall feed
  • Duties and rights of both parties
  • Reimbursement of costs of production
  • Health reports and maintenance of other records
  • Compensation for the feeding
  • Rights of inspection
  • Decision for sale of the cattle
  • Insurance and reporting for death or any loss
  • Identification of cattle

Negotiation Strategy

Negotiation happens about the compensation payable. The other aspect is the weight gain for the number of days that the cattle would be fed. In addition to this, inspection rights, the types of feed, tagging the cattle and the rights of the feeder are all open for discussion

Benefits & Drawbacks of the Cattle Feeding Contract

A well-drafted agreement only helps both parties as it ensures there is written proof signed by both parties. It can be referred in case of any serious conflict.

Thus, the agreement only has multiple benefits such as –

  •   It ensures the feeder takes care of the health and food of the cattle
  •   The feeder provides multiple facilities to the cattle than an individual owner may not be able to provide
  •   The agreement ensures there are no conflicts
  •   The agreement legally protects both parties from any frauds and issues during the agrement
  •   The agreement lists down all responsibilities and obligations of both parties
  •   The agreement provides the details of restrictions on both parties

The agreement doesn’t have disadvantages as owner and the feeder can only gain profits with the help of the agreement, but it can be risky in some cases. Parties must understand their case need first and then sign the agreement to avoid any trouble.

[ Also Read: Puppy Sale Contract ]

What Happens in Case of Violation?

In case of violation(1), both parties must mediate with the help of a third party. Thus, you can also add the name of a mediator in the agreement. If there are complications, then the parties may to approach the court. For each state, there are different laws about the agreement. Depending on the state you live in, you must understand the laws.

Cattle Feeding Rates are increasing with demand. Cattle feeding is becoming more important these days. There are also many online samples available for the agreement. However, it is suggested that you choose an agreement drafted by an expert who knows and understands the nuances of such an important piece of document.