Risk Mitigation

Conduct business with confidence.

Risk Mitigation assists LMA members in protecting their interests as well as their consignors’ by staying up-to-date about the trade reputation and financial responsibility of their buyers. Risk Mitigation is a membership service that provides various financial risk management solutions to manage, mitigate and transfer risk from possible buyer default.

For Buyers

Buyer Registration Consent Agreement (BRCA) Form

Information received by LMA in response to the submission of a Buyer Registration Consent Agreement from a buyer’s lender is gathered for business purposes only for the confidential use of LMA and LMA members. Although LMA makes diligent efforts to confirm the accuracy of the information provided, it cannot and does not guarantee that the information is accurate because it has been submitted by other sources. LMA makes no recommendations to members as to whether or not they should do business with any buyer.

Click below to view an instructional video on how to utilize the form.

For Members

What is a BRCA?

Financial Reporting and Information Gathering

Expressly authorizes the buyer’s bank to release financial information to the market or LMA to help the market determine the buyer’s financial ability to pay. The agreement does not expire and will remain in effect until the buyer provides written revocation.

Terms of Sale
  1. The agreement states that the buyer will be financially responsible for the livestock.
  2. Describes when payment is to be made and if payment is not made when due, the market is entitled to collect interest.
  3. If legal action is taken to collect, the agreement entitles you to collect attorneys’ fees and court costs. Most states require this in writing.
  4. Outlines cash sale and addresses prompt payment requirements for buyers that fall under the Packers & Stockyards Act.
  5. Defines and includes a provision for Implied Warranties.
  6. Establishes a security interest in livestock sold.

How do I get one?


As part of your LMA membership, there is no additional cost for this service for up to 400 inquiries a year. Also, LMA Risk Mitigation covers any fees associated with the VOD inquiry process that cost on average $25-$45 each.

Inquiry Process

Have your buyer complete the BRCA form and send it to the LMA Risk Mitigation Department via fax, email or online for processing. It is critical to have your buyer complete all fields on the BRCA form. Once received, a member of the LMA Risk Mitigation team will process the inquiry. Once the bank completes the inquiry, LMA will promptly send the bank response to you.


LMA makes every effort to return the bank response information the same day, but in some instances, the buyer’s bank may take longer. LMA will update and notify you regarding the status of the inquiry or if there are any issues in 24 hours or less.

How do I use it?

Bank response- Verification of Deposit

The Verification of Deposit inquiry process does not merely verify funds on a single check, but provides a comprehensive overview of a buyer’s financial position including checking, savings, CDs and investment balances; lines of credit including initial commitment, outstanding balance, available funds and term notes; number of returned items and whether the account has a satisfactory rating and paid as agreed.

Record Retention

After sending the BRCA to LMA, should you choose to maintain the BRCA in our office, as with any document that has customer information (BRCA, diver’s license, canceled check, social security number, etc.), LMA highly recommends you keep the information stored in a secure manner and destroy according to your market’s record retention policy.

Other membership benefits

Business Alerts

Notification to members of buyer default, fraudulent activity, insufficient payment received and returned deposit items.

Custom Market/Dealer Forms

 Individualized forms to manage, mitigate and transfer risk from possible buyer default.


Assess buyer base and analyze buyer risk profile.

Contact LMA Risk Mitigation:

Email: riskmitigation@LMAWeb.com
Fax: 816-891-7108
Phone: 800-821-2048