JBS S.A., the Brazilian corporation that jumped into American cattle feeding and packing with both feet last year, has announced it has restructured its ownership of Five Rivers Cattle Feeding.

When JBS purchased the Smithfield Beef Group last year, it also purchased 100 percent of Five Rivers Cattle Feeding, which owns 10 feedlots with a capacity of 1.5 million head. Prior to that purchase, Five Rivers was an integrated business that operated as both feedlot and cattle owner. JBS said it evaluated the benefits and challenges of retaining that business model under JBS USA ownership, which is headquarted in Greeley, Colo.

Due to existing and future potential packer-ban legislation at the state and federal levels — legislation that prevents beef packers from owning cattle — JBS S.A. decided to split ownership of the cattle-feeding business.

JBS made what it calls “a strategic decision” with J&F Oklahoma to split ownership of Five Rivers. J&F will own the cattle and JBS USA will own the feedlots.

JBS Five Rivers, a subsidiary of JBS USA, will charge the owners of livestock a daily per-head fee to fatten their cattle and take care of animals until they are ready for slaughter.

J&F Oklahoma Holdings owns up to 800,000 head of cattle on feed at the 10 feedlots and will pay JBS Five Rivers a market-based daily cattle-feeding “hotel fee” for the care and maintenance of its animals.