Missouri State University

Disposing of Excess Agricultural Animals and Products

Historical Perspective

All Missouri universities as well as those in the surrounding states have traditionally sold bulk agricultural products through commercial marketing outlets or through the sealed bid process.

All Missouri universities as well as those in the surrounding states have traditionally sold unique agricultural products through an "expert" placing a value on the animal and/or product with the first person agreeing to pay the value being awarded the sale.

This process for disposing of unique products has become the practice for universities due to the following:

  1. It is the practice followed in the private sector.
  2. It maximizes the returns for the university.

Disposal Process

  1. Specific procedures to follow at MSU for disposing of excess animals:
    1. The "expert" (normally the MSU professor in charge of the project) will establish a price for each animal that is to be sold.  The established price will be determined by consultation with an outside appraiser with established expertise in the horse industry.
    2. A price list of animals available for sale by the University will be updated quarterly and filed with the University Property Control office and the Department of Agriculture office.  Adjustments to animal values will be documented by a memorandum prepared by the “expert” and placed on file with the price list in the above-mentioned offices.  Purchase of animals at the predetermined listed price will be available to any buyer.
    3. If no buyer is available when excess animals are required to be disposed, animals will be sold at public auction. Notice of intent to sell University animals at auction will be placed in the local paper with the largest circulation on two (2) successive Sundays (or weeks, if a weekly paper) prior to the public auction, following the procedures utilized by University Property Control. 
    4. No University employee or any member of the employee’s immediate household shall purchase, directly or indirectly, any livestock disposed under this policy.
  2. Specific procedures to follow at MSU for disposing of excess meat products:
    1. The "expert" (normally the MSU professor in charge of the project) will survey the local markets and price the meat products at market value if possible, or only enough below market value to dispose of product and to account for the nonprofessional nature of the processing (even though it meets USDA food safety standards). In no case will products will be sold at less than one-half of the determined market value.
    2. When product is available, the University community will be notified and sales conducted.  Products may be provided as promotion of the University to individuals and groups.  Sales to any one person or entity will be limited to no more than One Thousand Dollars ($1,000) in any calendar year.
  3. Specific procedures to follow at MSU for disposing of excess fruits and vegetables:
    1. Fruits and vegetables being harvested in the process of collecting research data are perishable and require high input of harvesting labor.  Disposal of this product may be accomplished through returning to the volunteer laborers product having a value of less than One Hundred Dollars ($100).  Products may be provided as promotion of the University to individuals and groups.  Sales to any one person or entity will be limited to no more than One Thousand Dollars ($1,000) in any calendar year.
    2. The "expert" (normally the MSU professor or professional staff in charge of the project) will survey the local markets and price the fruit and vegetable products at market value if possible, or only enough below market value to dispose of product and to account for the nonprofessional nature of the processing (even though it meets USDA food safety standards).
    3. When product is available, the University community will be notified and sales conducted.  Products may be provided as promotion of the University to individuals and groups.  Sales to any one person or entity will be limited to no more than One Thousand Dollars ($1,000) in any calendar year.
  4. Specific procedures to follow at MSU for disposing of excess field crops or fruit with a value of more than One Thousand Dollars ($1,000):
    1. Field crops or fruit with a value of more than One Thousand Dollars ($1,000) that cannot be utilized by SMSU animals may have uniquely high or low quality and therefore follow the unique product policy.  The "expert" (normally the MSU professor in charge of the project) will survey the local markets, establish a fair market value and dispose of the product at market value, or only enough below market value to dispose of the product and to account for the nonprofessional nature of the processing.  These products will have a value of less than Five Thousand Dollars ($5,000).
    2. The "expert" will prepare a memo to file in each case, documenting the established price and providing a summary basis for the price established.  In no case will products will be sold at less than one-half of the determined market value.  For each sale, the "expert" will identify and document the determined market value.
    3. Newspaper advertisement as described in Paragraph A.4. will be provided for all sales in excess of One Thousand Dollars ($1,000). In the case of perishable field crops or fruits where such advertisement is not reasonable, bids will be solicited from potential interested parties by facsimile, telephone or other reasonable means, at least three (3) days prior to the sale.  Sealed bids will be permissible in any case.
  5. Procedures applicable to disposing of all animals and products pursuant to this policy.
    1. Appropriate documentation of quantity sold, proceeds received and disposition proceeds, and accounting for monies collected will be followed in all cases, following University petty cash procedures.
    2. In each case, financial proceeds will be deposited to the credit account of the college (or campus as in the case of the Mountain Grove campus) to further support the missions of those entities as determined appropriate by the Dean or Director.
    3. Spoilage may be disposed of without cost, and fruit and crops not sold according to this policy will be disposed of in accord with applicable public health, safety and environmental regulations.  Fruit treated with experimental agents will not be sold, but will be disposed of according to this policy.
    4. In any case where the value of the product or animal to be sold or disposed of exceeds Five Hundred Dollars ($500), notices will be posted in the department proposing sale or disposal of the product or animal, and a copy of the notice will be provided to Property Control at least ten (10) days prior to the proposed disposition, or as otherwise permitted by this policy.  In all cases, the notice will provide interested parties adequate information to determine interest, will provide the date of the proposed disposition, and the name, telephone number and e-mail address of the contact person for each disposition.
    5. All items will be sold on an "as is, where is" basis, with no warranty or representation as to the functionality, and that statement will be included in all sale notices and transfer documentation.