The U.S. Department of Agriculture published a notice in the Federal Register on June 23, 2023, implementing revisions to regulations under the Packers and Stockyards Act. These revisions implement the Livestock Dealer Statutory Trust, which provides financial protection for cash sellers of livestock. These updated regulations are part of USDA’s efforts to support transparency throughout the supply chain and ensure fair prices for farmers and livestock producers. The revisions go into effect July 24, 2023.

Congress amended the act, 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 final regulation adds 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. Unpaid sellers must notify the dealer and the secretary in writing within 30 days of the date payment was due on the transaction or within 15 business days after notice that payment was dishonored in order to preserve their trust benefits. In addition, under the final rule, livestock dealers are required to obtain written acknowledgement from livestock sellers that trust benefits do not pertain to credit sales and are required to maintain records related to credit sales.

For assistance with livestock payment concerns or help with filing a claim, unpaid sellers should contact their respective P&S Regional Office. Additional information for P&S office contacts and a copy of the P&S Act are accessible on the AMS website.

Source: USDA's AMS