Guide To Developing A Custom Dairy Heifer Raising Agreement

Agdex#:	412
Publication Date:	1998
Order#:	98-019
Last Reviewed:	1998
History:	New
Written by:	Cheryl Russwurm - Farm Management Specialist/OMAFRA; Marlene Werry - Farm Management Specialist/OMAFRA; Mario Mongeon - Livestock Specialist/OMAFRA; Jack Rodenburg - Dairy Systems Productions Program Lead

Table of Contents

1. Property Description Where Cattle Will Be Fed and Housed
2. General Terms of Agreement
3. Operation and Maintenance
4. Responsibilites
5. Calculation of Feeding Charges and Payment Schedule
6. Arbitration of Differences

This form can provide the owner and feeder with a guide for developing an agreement to fit their individual situation. This form is not intended to take the place of legal advice pertaining to contractual relationships between the two parties. The Ontario Ministry of Agriculture, Food and Rural Affairs does not warrant that this agreement is suitable for all of the specific and individual regards of the parties. Parties should review their requirements with care and consult legal advice prior to completing any agreement. For more information on custom raising heifers refer to Publication 98-059, "Considerations for Custom Raising Dairy Heifers."

THIS INDENTURE made (in duplicate) the _________ day of __________(month),_________ (year).

BETWEEN:

_____________________________________________________ Owner

AND

_____________________________________________________ Feeder

I. Property Description Where Cattle Will Be Fed And Housed

The feeding premises are located in the municipality of___________________________ in the County, District or Region of___________________________ in the Province of Ontario, legally described as Lot____________ Concession ____________ .

II. General Terms Of Agreement

1. Term - The term of this agreement shall be __________ month(s), commencing on the day of_________ and ending on the ______________ day of ___________ . Notice of termination by either party must be given at least ______________days prior to the termination being effective.
   
   
2. Amendments and Alterations - Amendments and alterations to this agreement shall be in writing and shall be signed by both the owner and feeder.
   
   
3. No Partnership Intended - It is particularly understood and agreed that this agreement shall not be deemed to be nor intended to give rise to a partnership relationship.
   
   
4. Right of Entry - The owner reserves the right for himself, his agents, his employees or his assigns to enter the farm at any reasonable time to consult with the feeder; make inspections, monitor growth or do work. None of which is to interfere with the feeder in carrying out regular farm operations.
   
   

5. Binding on Heirs - The provisions of this agreement shall be binding upon the heirs, executors, administrators and successors of both owner and feeder in like manner as upon the original parties, except as provided by mutual written agreement.
   

6. Early Removal - Provisions if cattle must be removed before the end of the agreed feeding period, i.e. problems with cattle or facilities: _________________________________________________
   

7. Delayed Removal - Provisions if cattle must be held longer than the agreed feeding period, i.e. quarantine: _____________________________________________________________________
   

8. Additional Provisions - Only heifers from luekosis free status herds will be accepted. Before an feeding agreement is struck with a new heifer owner, present owners have the option of terminating this agreement by giving ___________ days written notice.
   

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III. Operation And Maintenance

A. The livestock owner agrees:

1. The feeder reserves the right to refuse or remove any individual animals that in his estimation will not make reasonable gains or growth or may expose other animals in the lot to disease or injury( i.e. a continuous sucker).
   
   
2. Not to put any cattle on feed without getting specific approval from the feeder in advance regarding number, health, breed, age and weight.
   
   
3. Heifers to be placed on feed will be in the weight range of _____________ lbs. or
   ________ to _________ months of age.
   
   
4. Pre-arrival treatment will include:
   vaccinations(product and dates)________________________________________
   deworming ________________________________________________________
   delousing__________________________________________________________
   dehorning__________________________________________________________
   removal of extra teats_________________________________________________

B. The feeder agrees:

1. To provide regular and humane care and handling of the heifers.
   
   
2. To provide feed and care as follows:
   
   Ration guidelines MIN % MAX %
   1) TDN ____________ ___________
   2) Protein ____________ ___________
   3) Specific Feeds (specify): ___________ _____________
   _______________________________________________________
   4) Feed additives: ________________________________________
   To have all forages analyzed.
   Bedding supplied will be (what type)___________________________________
   Unless specified above, feeder will make decisions on feeding and care based on good animal husbandry.

3. To monitor growth to meet expectations as per OMAFRA Fact sheet "Growth Management of Dairy Heifers", 82-056, and provide measurements to the owner regularly _________ or as requested __________________________________________________________________.
   
   
4. To provide a breeding program as follows:
   Product/time/age/company Cost borne by:
   Heat Detection: ___________________________________________________________
   Heat Detection aids: _______________________________________________________
   Heat synchronization: ______________________________________________________ Semen selection: __________________________________________________________
   Artificial Insemination: _____________________________________________________
   Pregnancy checking
   (by whom and when): ______________________________________________________
   Problem breeders: __________________________________________________________
   

C.. Both agree:

1. Not to obligate the other party. Neither party hereto shall pledge the credit of the other party hereto for any purpose whatsoever without the consent of the other party. Neither party shall be responsible for debts or liabilities incurred, or for damages caused by the other party.

2. It is further agreed that wherever the singular and masculine are used in this indenture they shall be construed as if the plural or the neuter or feminine had been used, where the context or the party or parties hereto so require, and the rest of the sentence shall be construed as if the grammatical and terminological changes thereby rendered necessary had been made.

IV. Responsibilities

Additional responsibilities for each party shall be divided as follows: (Check column or indicate percent share where appropriate).

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V. Calculation Of Feeding Charges And Payment Schedule

(Use Method (A) ,(B) or (C )and strike out the methods not used.)

Method (A) Gain in Weight

1. Weighing Conditions:
   

Other agreements regarding weighing:_____________________________________
____________________________________________________________________

2. The owner shall pay the feeder _______ cents per pound of gain.
   Payment schedule:_______________________________________________________________
3. . Final payment(s)(net of any prepayment) shall be within _________ days of when a group of heifers is removed.

Method (B) Feed and Yardage Agreement

1. The feeder shall have ___________ cents per head per day for yardage.

2. Feed will be charged at the following rates:
   (a) Predetermined Price basis: _________ OR ________ Floating Price Based upon the following market references as of the date of billing: ______________________________.
   (b) Weight basis(check method) __________As Fed OR _________ Dry Matter
   (c) Feeds provided:
   corn silage $___________ hay $___________
   corn $___________ other grain _________$___________
   other (specify) ________________________$__________
   ________________________$___________
   ________________________$___________

The ration will meet the specifications outlined in III (B) (2).

3. The feeder will render accounts monthly or __________ indicating the number of cattle/days on feed and quantities of feed consumed.
   
   
4. The owner shall pay the invoice charges in full by _______ days following the rendering of accounts. Unpaid balances will accrue interest at ___________ % per month.

Method (C) Daily Rate

1. The owner shall pay the feeder $-____________per day for heifers between and months of age, and $ ____________ for heifers between __________ and ________months of age, or to ____________ months of gestation.
   

2. The owner shall pay the invoice charges in full by ___________ days following the rendering of accounts. Unpaid balances will accrue interest at ___________ % per month.
   

VI. Arbitration Of Differences

All matters in difference in relation to this agreement and to the affairs of the business shall be referred to the arbitration of a single arbitrator, if the parties hereto agree upon one; otherwise to three arbitrators, one to be appointed by each party and a third to be chosen by the first two named before they enter upon the business of arbitration. The award and determination of such arbitrator or arbitrators, or any two of such three arbitrators, shall be binding upon the parties hereto and their respective heirs, executors, administrators and assigns.

Executed in duplicate in the presence of a witness on the day and year first above written.

__________________________________________
(Owner)

(Witness)_____________________________

___________________________________________
(Feeder)

(Witness)_____________________________

References:

1. Lawson, A., etc.(1993), "Cattle Feeding Agreements", Ontario Ministry of Agriculture, Food and Rural Affairs, Publication 600
   
2. (1993) "Contract Heifer Raising", USDA Leaflet N115.193
   

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