Association (LMA) members and staff traveled to Washington D.C. for the 11th annual LMA D.C. Fly In. Approximately 40 people met with leaders in D.C. on issues that matter to the livestock marketing industry. Discussion centered on the need to update Packers and Stockyards Act requirements to keep up with 21st Century business practices.

During meetings with legislators and legislative staff, LMA members detailed why modernization of the Packers and Stockyards Act is necessary for marketing businesses. Livestock market owners operate very different businesses than the dozen terminal stockyards that existed in major cities when the Packers and Stockyard Act was written in 1921. Additionally, banking practices have changed and technology has led to increased sales of livestock through online and video auctions.

LMA is pursuing targeted changes to clarify that farmers and ranchers selling through online and video auctions are afforded the same protections as those that sell at a fixed-facility livestock market.  Additionally, LMA would like to clarify that modern forms of electronic payments, such as Automated Clearing House (ACH) transfers, can be used as an option to meeting Packers and Stockyard Act prompt payment requirements.

The LMA also discussed how current payment protection options in the Packers and Stockyard Act are not providing sufficient protection for markets, farmers, or ranchers selling to livestock dealers. According to Grain Inspection Packers and Stockyards Administration (GIPSA) data, from 1999 -2013, the average return on a livestock dealer bond claim is 15 cents per dollar. This is not including the Eastern Livestock bankruptcy, where the return was less than 5 cents per dollar. This topic is one the LMA would like to work on, in conjunction with the agriculture industry and congressional leaders, in the coming years.

In addition to meetings on Capitol Hill, attendees also visited with Susan Keith, USDA Grain Inspection Packers and Stockyards Administration Deputy Administrator for the Packers and Stockyards program and Craig Morris, USDA Agricultural Marketing Service Deputy Administrator for the Livestock, Poultry, and Seed program.

“LMA’s Fly In was a productive opportunity to continue our educational efforts and to talk with decision makers in D.C. about the short term modernizations that will allow the law to recognize online and video auctions as well as modern banking practices,” said Chelsea Good, LMA Vice President of Government and Industry Affairs. “While there a certainly other areas of the law that may be of interest to LMA, other groups, and the agency, the goal for this project is simply to make the two common sense, good government updates without broadening the discussion to other topics.”