Many handshake agreements have blown up over misunderstandings on what was said or what was agreed upon. Penn State University dairy Extension specialists recommend a full contract that sets a comprehensive fee for the grower to raise heifers for a specific length of time. Well-written legal contracts protect both parties in a business relationship by laying out the terms and details of transactions.
Source: Dairy Herd Management, March 2, 2021. Link. Contracts should be revisited at least annually. It also is advisable to use legal counsel to draw up the final document to ensure all parties agree to the terms and the contract is in keeping with state laws.
INSIGHTS: As a rural attorney once shared with me, “If you can’t write it down, it doesn’t exist if something happens during the term of the agreement. . . not all handshakes are made with the same grip.”