The USDA’s Agricultural Marketing Service this week announced a new Dealer Statutory Trust to protect livestock sellers. That’s an amendment in the Packers and Stockyards Act that establishes that trust for the benefit of unpaid cash sellers of livestock. South Dakota Cattlemen’s Association President Eric Jennings says they’ve been working on this for some time and it’s a welcome addition.
He says having this trust is a good safety measure that benefits the entire livestock industry.
Under the New Dealer Statutory Trust, livestock sellers who do not receive timely payment from a dealer may file claims on the dealer statutory trust. And to be valid, trust claims must be filed within 30 days of the final date for making payment. Jennings says that makes sense and is a good protective step.
Dealers who received a trust claim notice are required to give notice within 15 days to anyone holding a lien on the livestock held in the trust.
