AMS announces Dealer Statutory Trust for livestock
The Agriculture Department’s Agricultural Marketing Service last week announced a new Dealer Statutory Trust to protect livestock sellers.
The Consolidated Appropriations Act, signed on Dec. 27, amended the Packers and Stockyards Act by adding Section 318 to establish a “Dealer Statutory Trust” for the benefit of unpaid cash sellers of livestock, AMS noted.
“USDA supports transparency in pricing throughout the supply chain to ensure farmers and livestock producers are getting a fair price, and we look forward to working with Congress and the federal family to improve price discovery and protect against unfair treatment,” said Robert Bonnie, USDA deputy chief of staff for policy.
“Much like the existing packer and poultry trusts, the amendment requires livestock dealers to hold all livestock purchased, and if livestock has been resold, the receivables or proceeds from such sale, in trust for the benefit of all unpaid cash sellers of livestock until full payment has been received by those sellers,” AMS said in a news release. “Dealers whose average annual livestock purchases do not exceed $100,000 are exempt.”
House Agriculture Livestock and Foreign Agriculture Subcommittee Chairman Jim Costa, D-Calif. applauded the agency’s move.
“I am pleased that USDA has taken the necessary steps to put these protections in place for the benefit of livestock sellers throughout our country. I co-led bipartisan bills to establish this trust in the 115th and 116th Congresses, and I look forward to working with the experts at USDA to ensure farmers and ranchers are not left bearing the costs of dealer defaults.”
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Craig Latham, a nine-time National Finals Rodeo qualifying saddle bronc rider, passed away Oct. 8 after a lengthy battle with cancer. He was 54.