Today, the U.S. Department of Agriculture (USDA) published a notice in the Federal Register proposing revisions to regulations under the Packers and Stockyards Act (Act). These revisions implement the Livestock Dealer Statutory Trust, which provides financial protection for cash sellers of livestock.
Congress amended the Act in late 2020, providing for a statutory trust covering livestock purchases by dealers. Dealers whose average annual livestock purchases exceed $100,000 are required 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. The proposed regulations would add procedures and timeframes 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 their trust interests. In addition, under the proposal, livestock dealers would be required to obtain written acknowledgement from livestock sellers that trust benefits do not pertain to credit sales and would be required to maintain records related to credit sales.
USDA’s Agricultural Marketing Service, which administers and enforces the Act through its Packers and Stockyards Division, invites interested stakeholders and the public in general to review and comment on the proposed rule. Comments will be accepted at www.regulations.gov until June 6, 2022, on the proposed rule and until July 5, 2022, on the information collection burden.
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