In this file:
· USCA Commends USDA On Establishment of Dealer Statutory Trust
· New Dealer Statutory Trust to protect livestock sellers
USCA Commends USDA On Establishment of Dealer Statutory Trust
Feb 22, 2021
(WASHINGTON) – On Wednesday, February 17, the United States Department of Agriculture (USDA) announced the establishment of a new Dealer Statutory Trust to Protect Livestock Sellers.
United States Cattlemen’s Association (USCA) Vice President and Marketing & Competition Committee Chair Justin Tupper issued the following statement:
“USCA has worked hand-in-hand with the Livestock Marketing Association to help establish a Dealer Statutory Trust to Protect Livestock Sellers. A years-long effort culminated shortly after Christmas last year with the signing of the Consolidated Appropriations Act on December 27, 2020, which included the necessary provisions to create this trust.
“When someone defaults on payment to a sale barn or a dealer, there is little to no recourse for the barn or the dealer to receive funds or cattle because the bank has seized all assets - even the ones not paid for that are already in transit. The Dealer Statutory Trust gives the dealer or the sale barn a way to recover losses on cattle that have never been paid for.
“Dealer Trust puts producers and livestock markets first in line to recover livestock or any proceeds from them in a dealer default situation. This allows them to recover what is rightly theirs and not be forced out of business by a dealer default.
“USCA appreciates the work of the U.S. Department of Agriculture in swiftly implementing the Dealer Statutory Trust to Protect Livestock Sellers and looks forward to working with Congress and the Biden Administration to continuing to improve price discovery and protect against unfair treatment in the U.S. cattle market.”
New Dealer Statutory Trust to protect livestock sellers
Trust ensures cattle sellers receive payment should a livestock dealer become insolvent.
Jacqui Fatka, BEEF Magazine
Feb 22, 2021
USDA’s Agricultural Marketing Service announced a new Dealer Statutory Trust to Protect Livestock Sellers. The Consolidated Appropriations Act, signed on December 27, 2020, amended the Packers and Stockyards (P&S) Act by adding Section 318 to establish a “Dealer Statutory Trust” for the benefit of unpaid cash sellers of livestock.
The bill ensures that livestock producers are paid for their animals by requiring dealer trusts. In the current system, dealers frequently buy and resell livestock, often grouping them to meet the volume and type needs of their customers. Dealers are allowed to take possession of livestock and pay for them later, and dealers do not maintain a trust account to guarantee payment...