In the Federal Register, USDA published proposed revisions to the Packers and Stockyards (P&S) Act’s Livestock Dealer Statutory Trust, which provides financial protection for cash sellers of livestock.
The proposed revisions would add procedures and time frames for a livestock seller to notify the livestock dealer and the secretary of Agriculture that the seller has not received full payment for livestock purchased by the dealer and that the seller intends to preserve its trust interests.
Additionally, dealers whose average annual livestock purchases exceed $100,000 are required to hold all livestock purchased, and if any livestock have been resold, the receivables or proceeds from the sale must be held in trust for the benefit of all unpaid cash sellers of livestock until those sellers have received full payment.
Interested parties can submit written comments about the proposed rule until June 6 by searching for docket ID AMS-FTPP-21-0015 at www.regulations.gov.
