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Livestock Producer Comments Needed for Study on Payment Protection

Dan Cattle, Economy, Livestock

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USDA is asking for those in the livestock industry to take part in a comment period regarding potential changes to priority in livestock dealer default situations. A question some are asking is, when a livestock dealer’s check bounces, should the farmer or rancher who raised the cattle be able to get them back? And while most people agree they should, many sellers have learned the hard way that is not usually allowed under current law. Often times, when a dealer fails to pay, that dealer’s bank takes first priority in the cattle. The Eastern Livestock default in 2010 is the best-known example of this.

According to a release from the Livestock Marketing Association (LMA), in the 2018 Farm Bill Congress directed USDA to conduct a feasibility study on Dealer Statutory Trust, which has been proposed by members of congress to improve seller recovery. As a part of the study, USDA is seeking public comments. But those comments need to be submitted by June 24th.

Various livestock groups and organizations supports a Dealer Trust and encourages the whole livestock industry to participate in the USDA comment period. That includes the LMA, National Cattlemen’s Beef Association (NCBA), American Farm Bureau Federation (AFBF), U.S. Cattlemen’s Association (USCA), American Sheep Industry (ASI), and numerous state producer groups.

To learn more, visit https://lmaweb.com/policy/