Custom Feeding Arrangement Agreements

Rincker Law Food & Ag Law Leave a Comment

Feeding bunks on a farm in SaskatchewanA custom feeding contract is between a livestock owner and a livestock feeder with market animals. The following information should be included in the contract:

1. Identification of Livestock: This includes type, weight, sex, and breed/color of the livestock.
2. Feeding and Nutrition: The contract should specifically detail the feeding regimen, including the type of feed, feeding schedule, access to water, and who will be responsible for expenses of purchasing the feed.
3. Division of Profits or Loss: The contract should indicate how profits and losses shall be divided between the owner and feeder.
4. Marketing of Livestock: Contract should detail the approximate timeline for marketing and desired stage of finish.
5. Delivery: It is important to include approximate date of delivery, deadline for delivery, and responsibility for shipping/transportation costs.
6. Shrink: This term is especially important if rate of gain is used to determine any type of payment.
7. Management Practices: This clause should address compliance with livestock animal welfare laws.
8. Repossession of Livestock: The contract should include clause that allows for repossession of animals if they are not being cared for properly, as well as being able to retrieve low-performing animals.
9. Manure Handling: Contract should state who will be responsible for handling and storage of manure – it’s generally the feeder. Feeder will also assume responsibility for any liability related manure handling including compliance with environmental laws.
10. Veterinary Care: Contract should indicate which party will be responsible for veterinary care for the animals, including payment and notification to the other party.
11. Risk of Loss: The owner retains title to the animals during this contract, therefore he or she will be liable for risk of loss due to death, unless there is negligence by the feeder.

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In addition to having these clauses in the agreement, it is always important to include clauses about choice of law, confidentiality, indemnification, and alternative dispute resolution. Rincker Law, PLLC is prepared to help you navigate the drafting of a custom feeding contract.

Want more information on contracts for the food and agriculture industry?  Check out my first book that I co-authored with Pat Dillon, an Iowa agriculture lawyer titled “Field Manual: Legal Guide for New York Farmers and Food Entrepreneurs” available on CreateSpace, Amazon, Kindle and iBooks. You can find out more about this book here.  Furthermore, you can check out this extensive outline on common agriculture contracts on my JD Supra page prepared for this Lawline.com presentation

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