Is the cattle herd included when you buy a cattle farm?
Not automatically. A herd may be part of the sale, sold under a separate agreement, or dispersed by the seller before closing. Whatever the arrangement, the purchase agreement should list the animals by class, say what happens to calves, culls and deaths before closing, and provide for a count when the farm changes hands.
People often assume a cattle farm comes with its cattle. Sometimes it does. Sometimes the seller keeps the herd, sells it at auction, or sells it to the buyer under a separate agreement. The listing may not say. Because the animals are alive and keep changing, the paperwork needs more care than it would for a building or a truck.
Three common arrangements
The herd can be included in the sale of the farm. It can be sold separately, with its own terms and perhaps its own timing. Or the seller can disperse it before closing, leaving you the land and buildings. Ask which one applies at the start, because your financing, your plans for the season and your first year all depend on it.
How the agreement describes the animals
A good agreement does not say simply “the herd.” It lists the number of head by class: cows, bred heifers, bulls, calves at foot. It says what happens to calves born between offer and closing, and to animals that are culled, sold or die in that time. Your lawyer can draft the wording to fit your deal.
The count at closing
Livestock change between signing and closing, so many buyers ask for a physical count on or just before the closing date, checked against the list in the agreement. Decide who attends, who does the counting, and what happens if the numbers differ. Agreeing this in advance avoids an argument on a busy day.
Feed and equipment
A herd needs feed, handling equipment and often shared machinery. Ask whether stored hay and silage, mineral and feed stocks, and the equipment used with the cattle go with them. See what to check before buying a farm supply store for how suppliers fit into the picture.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- GuideBuying a beef cow-calf operation in Canada
- Expert answerCan I buy a farm business that farms rented land?
- Expert answerHow do I find a feed store for sale near me?
- Expert answerWhat should I check before buying a farm supply store?
- Expert answerWhat should I do in the first months after buying a butcher shop?
- Expert answerWhat should I check before buying a Christmas tree farm?
Succession
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Farm Credit CanadaIndustryAgriculture
- 04Farm Credit CanadaGovernmentLand and Buildings
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