Supporters say legislation introduced this week would address livestock industry issues relating to dealer payment default. Republicans, Senator Chuck Grassley of Iowa and Jim Inhofe of Oklahoma, Monday, introduced the Securing All Livestock Equitably, or SALE Act.
The lawmakers say the Act will make sure both livestock dealers and farmers are protected moving forward without negatively impacting their bottom line. Quick turnaround between the purchase and resale of cattle by a dealer often leaves the rancher who originally owned the cattle with little recourse if a dealer defaults on a purchase because the livestock has often already been resold. The legislation would establish dealer statutory trusts, mimicking existing packer statutory trusts, to ensure cattle sellers receive payment should a livestock dealer become insolvent.
The 2018 Farm Bill contained a provision directing the Department of Agriculture to conduct a study to determine the feasibility of establishing a livestock dealer statutory trust. The results helped inform the senators’ ongoing effort to establish the creation of a Livestock Dealer Statutory Trust.
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