WASHINGTON, D.C. (December 22, 2020) – The Livestock Marketing Association (LMA) applauds Congress for passing Dealer Statutory Trust in the COVID relief package.
A Dealer Statutory Trust will provide sellers of livestock much needed payment protection during dealer payment defaults.
“LMA is grateful for the tremendous leadership of Congress to correct a fundamental unfairness in the current law where livestock sellers often cannot get livestock back when payment does not come through,” said LMA President Larry Schnell. “This is a top priority issue for livestock auctions, which pay producers whether or not we are paid by buyers, and have been devastated by past defaults.”
The creation of a Dealer Statutory Trust, modeled after the existing Packer Statutory Trust, will give unpaid sellers of livestock first priority in livestock or if the livestock have already been resold, the proceeds/receivables from livestock.
While this protection for livestock sellers has long been needed, the volatile down market in cattle prices due to COVID-19 increased the urgency of addressing this issue.
Special thanks go to Senate Agriculture Committee Chairman Pat Roberts (R-KS) and House Agriculture Committee Chairman Collin Peterson (D-MN), both of whom have been instrumental in moving this legislation forward. Recognition is also due to the original lead co-sponsors of Securing All Livestock Equitably (SALE) Act, (H.R. 6067, S. 3419), which would create a Dealer Statutory Trust. Congressmen Roger Marshall (R-KS) and Jim Costa (D-CA) led this effort in the House and Senators Jim Inhofe (R-OK) and Tina Smith (D-MN) championed the cause in the Senate. Additional co-sponsors of the SALE Act include Representatives Don Bacon (R-NE), Sanford D. Bishop Jr. (D-GA), Anthony Brindisi (D-NY), Cheri Bustos (D-IL), Liz Cheney (R-WY), James Comer (R-KY), TJ Cox (D-CA), Angie Craig (D-MN), Eric A. Crawford (R-AR), Rodney Davis (R-IL), Jeff Fortenberry (R-NE), Jim Hagedorn (R-MN), Josh Harder (D-CA), Vicky Hartzler (R-MO), Dusty Johnson (R-SD), Trent Kelly (R-MS), and Terri A. Sewell (D-AL). Senators John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Kevin Cramer (R-ND), Steve Daines (R-MT), Michael B. Enzi (R-WY), Joni Ernst (R-IA), Deb Fischer (R-NE), Chuck Grassley (R-IA), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Doug Jones (D-AL), Jerry Moran (R-KS), Marco Rubio (R-FL), Ben Sasse (R-NE), Jon Tester (D-MT), and John Thune (R-SD) are additional co-sponsors of the SALE Act in the Senate
About the Livestock Marketing Association The Livestock Marketing Association (LMA), headquartered in Overland Park, Kan., is North America’s leading, national trade association dedicated to serving its members in the open and competitive auction method of marketing livestock. Founded in 1947, LMA has more than 800 member businesses across the U.S. and Canada and remains invested in both the livestock and livestock marketing industries through support, representation and communication efforts. For more information, visit www.LMAWeb.com.