OVERLAND PARK, KS – The Livestock Marketing Association (LMA) applauded 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 of Dickinson, ND. “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.
