Forward Contract [Agriculture] Law and Legal Definition
According to 7 CFR 59.100 [Title 7—Agriculture; Subtitle B -- Regulations Of The Department Of Agriculture; Chapter I -- Agricultural Marketing Service H1 (Standards, Inspections, Marketing Practices), Department Of Agriculture; Subchapter C -- Regulations And Standards Under The Agricultural Marketing Act Of 1946 And The Egg Products Inspection Act - Part 59 -- Livestock Mandatory Reporting; Subpart B -- Cattle Reporting],
(1) When used in reference to live cattle, the term "forward contract" means an agreement for the purchase of cattle, executed in advance of slaughter, under which the base price is established by reference to prices quoted on the Chicago Mercantile Exchange, or other comparable publicly available prices.
(2) When used in reference to boxed beef, the term "forward contract" means an agreement for the sale of boxed beef, executed in advance of manufacture, under which the base price is established by reference to publicly available quoted prices.
