Livestock Contract Feeding Arrangements

The “share or contract feeding” arrangements have been a favorable alternative for both livestock owners and feeders for a number of years. Some feeders prefer to risk only their labor and possibly their feed, others are willing to risk the entire cost of feeding livestock but lack the necessary capital or credit. Some livestock owners find it more convenient to contract with a second party to finish their livestock for market. As in all contracts livestock feeding contracts should be fair and understood by both parties. The contract should be designed to meet specific conditions important to the livestock owner and to the feeder. In a contract feeding agreement, the livestock owner usually agrees to supply the livestock to be fed. The feeder agrees to furnish the feed, equipment and labor for wintering, and/or pasturing or fattening the animals. The purpose of the contract is to make provisions for: • Handling and feeding. • Division of profit or loss. • Marketing the livestock. A thorough understanding of the contract should be reached before the plan is completed and signed. The agreement should always be in writing and each party should have a signed copy