News

USDA considering Dealer Statutory Trust

The USDA is considering a program to protect livestock sellers if the buyer defaults.

Chelsea Good with the Livestock Marketing Association says in the new farm bill, Congress directed the Ag Department to conduct a feasibility study on the Dealer Statutory Trust.

“Unfortunately, in the world we live in today, when there is a dealer default and a bad check is received, there isn’t an ability for that farmer or rancher to go get those livestock back.”

She tells Brownfield too often when a dealer fails to pay, that dealer’s bank takes first priority in the cattle.

Good says the Dealer Statutory Trust would change that.

“It would make it so the unpaid seller of livestock keeps priority in getting those livestock them self back. Or if they’ve been resold, priority in the proceeds or receivables from those livestock.”

A public comment period for the Dealer Statutory Trust ends June 24^th.

Good says Congress has given USDA until December 20^th to provide a study that lawmakers will use to determine if they’ll take congressional action on the proposal.

The National Cattlemen’s Beef Association, U.S. Cattlemen’s Association, American Farm Bureau, and American Sheep Industry also support the Dealer Trust.