Protecting Your Rights When Selling Livestock

Livestock is essential to many economies worldwide. From the nomadic herders to the cowboys of the American West — people have been buying and selling livestock for profit for generations and hundreds of years. However, before entering the world of animal trading, it is crucial to understand the various legal factors that affect this industry.

This comprehensive guide covers essentials to protect you when selling livestock, common mistakes made during the process and how to avoid them, and an FAQ section that covers all aspects of the purchase process. 

Whether you're an experienced trader or just getting started, this guide is a must-read for anyone involved in the livestock market.

Livestock plays a vital role in the agricultural industry as it provides food, clothing, and other products. According to the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS), there were approximately 89.3 million cows on U.S. farms as of January 1, 2023. The data emphasize the importance of livestock to the economy.

While buying or selling livestock may seem like a profitable investment, several factors must be considered. Learning how to protect your rights when selling livestock can help you get the best return on your investment.

To sell livestock safely, there are three essential steps that you need to follow:

Understanding your livestock business goals can help you figure out the possible profit you might make. Your business plan should describe the industry and, more specifically, the niche market. 

Record in your plan information where to buy and sell livestock in your area. This is important because you will likely work within a limited geographical space with specific business connections. Your business plan should include the following:

Lenders and investors might ask for this business plan before engaging with you. Therefore, having a sound business plan can help ensure your business stays on track.

Animals are living creatures. They need to be taken care of for them to grow and flourish. If you neglect your livestock, they can become sick or die. Livestock should have the following:

These are the basic necessities for caring for your animals. Paying careful attention to performing these duties may save you time and money.

A livestock bill of sale form can help to protect your rights when you sell livestock. The bill could also prevent hardship in the future, as it can be referred to if there are disagreements. This contract can be used to record the parties’ rights and responsibilities and may, therefore, help prevent a dispute.

Following these steps can protect you when you sell animals because they help ensure you get the best return on investment. Also, refer back to your plan and ensure that every business decision you make is in line with the objectives of your business.

When selling livestock, there are many factors to consider. Mistakes in judgment or miscalculations can be costly. However, learning from common mistakes others make can help you avoid them and set you up for success. By educating yourself on best practices for selling livestock, you can get the most value for your animals and avoid costly errors that may harm your business.

You may know the cost of buying an animal, but are you prepared for the costs of keeping it? Before buying or selling small livestock, research how quickly an animal will finish a bag of feed. This information varies across species and other factors. 

If you invest in a goat, horse, or cow, you will need to add the cost of hay, for example, which needs to be changed frequently to prevent illness. 

Depending on the circumstances, water might also need to be added to the overall costs. You might save on the cost of water if you have a well. Still, the electric bill could be considerable, especially if pumping additional water for the animals throughout the winter.

Medical expenses must also be factored in. Veterinary checkups cost money. Supplements and other natural remedies can come at a significant price. A vet might also need to be consulted if an animal is seriously ill or injured; the prescribed treatments or medical procedures can be expensive.

Buying or selling livestock from an auction or an agricultural store can be risky. An animal might appear to be healthy, but that might not be a reflection of its current state. If you aren’t experienced or knowledgeable enough, you might be swayed to make a purchase that should have been avoided.

Selling livestock from a local breeder may be optimal, as a prospective buyer can generally inspect the parents of the offspring on the premises. Again, if you are not knowledgeable, you will be forced to rely on the seller’s recommendations and risk making a wrong purchase.

Living in a right-to-farm state does not automatically give a person the right to keep any animal, any breed, or any number of animals. Farming regulations can differ significantly and sometimes depend on official authorization from a local governing body or be affected by neighbor grievances.

Also, remember to ensure the bill of sale is correct before signing. As with any contract, you should consult a lawyer to ensure the document has all the required information. 

Alternatively, a template may be a good option for drafting a livestock bill of sale. A template can be helpful to ensure that the parties include all the fundamental terms and conditions.

Any business endeavor, regardless of size, requires significant effort and resources to succeed. If you are not proactive in ensuring that your rights are protected, you might find yourself at the center of a dispute. 

Creating a legally binding template that outlines the business transaction details and protects your interests is essential. Such a document can help the parties quickly create the agreement, ensuring that both parties are aware of the terms and conditions of the transaction. It only takes a few minutes to make an agreement that will protect you from disputes in the future.