Animals - Sale of Livestock

Effective: Moved to Policy Library from ISU Surplus (Formerly Asset Recovery)
Updated/Revised: September 9, 2009
Contact: ISU Surplus

Introduction

In the course of its research and teaching activities, Iowa State University has ownership of various species of livestock and animals referred to as companion animals. When livestock has become surplus to the institution, animals with commercial value are to be sold. This policy provides guidance for appropriate livestock sales and describes sales that are prohibited to avoid conflicts of interest.

Policy Statement

All sales of livestock must comply with this policy. The names of all purchasers (i.e., name, company), the sale prices, and any conditions of sale must be maintained as a part of the unit's business records.

Prohibited sales

Prohibited sales of livestock include the following:

Persons conducting livestock sales may not sell to themselves, anyone else in their unit, family members, business associates, or others which may create a conflict of interest
Sales to business associates, including individuals with a partnership interest in a livestock enterprise
Sales to brokers except where this is the only outlet (sales to brokers who may sell to family members, business associates or ISU employees are discouraged)

Companion animals

Companion animals, and animals for which no commercial market exists, may be sold to students or ISU employees only after an adequate review by the faculty member in charge of the unit and approval of the administrator responsible for the unit.

The term "companion animals" applies to the rare occasion where a student or employee becomes emotionally attached to a laboratory dog or other small animal and requests permission to buy it as a pet (or companion animal). In such instances, after a thorough investigation, a student or employee may buy the animal by paying the cost of acquiring and conditioning a suitable substitute animal.

Sales of animals with commercial value

Animals that can be commercially marketed are not to be sold to ISU employees.

Horse Unit

Animals are sold at public auction and by private treaty. The professor in charge, in counsel with the herdsman of the unit, is responsible for pricing at competitive rates in the industry.

Sheep Unit

Animals are sold at public auction and by private treaty. The professor in charge is responsible, with counsel from the shepherd, for establishing prices of animals sold at private treaty and for evaluating bids by packers.

Swine Units

Animals are sold directly to packers on a grade and yield basis as with any other pork producer. Cull animals are sold by contacting buyers by phone. Prices are evaluated by staff members with knowledge of market prices. In most cases, collection of carcass data is required for research programs, thereby determining the marketing outlet.

Excess breeding stock is often sold at auction. For private treaty sales, the professors in charge, with the counsel of staff members, are responsible for establishing the selling price based on current market.

Dairy Units

Some excess animals, usually culls, are sold at auction. Animals with value in excess of slaughter market value are sold at private treaty based on price established by the professors in charge of the unit, with the counsel of staff members. Prices are based on the current market. Day-old bull calves are sold by private treaty based on staff members' knowledge of sale barn prices.

Beef Units

Breeding animals of above slaughter market value are sold at public auction and by private treaty. Prices for private treaty are established by the professors in charge of the units, with the counsel of staff members, based on knowledge of the market. Slaughter animals are sold by evaluating telephone bids by packers. The market outlet may be determined by price, as well as the ability to obtain carcass data for research programs.

Ag 450 Farm

Animals are sold directly to packers on a grade and yield basis. Cull animals are sold by contacting buyers by telephone. Prices are evaluated by student farm committees and/or the entire AgEdS 450 class, with final approval of the sale given by the professor in charge of the Ag450 Farm. Carcass data for evaluation purposes is collected and often determines the marketing outlet.

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