Policy

How to Submit Comments
Submit comments online at:
https://www.federalregister.gov/documents/2019/04/25/2019-08350/feasibility-study-on-livestock-dealer-statutory-trust#open-comment

Why Submit Comments
USDA is requesting public feedback on Dealer Statutory Trust. LMA supports the creation of a Dealer Trust, which in the event of a dealer default would provide unpaid sellers of livestock priority to reclaim livestock or, if they have been resold, proceeds/receivables from livestock. LMA members are encouraged to submit comments on or before Monday, June 24, 2019.

Why Submit Comments
USDA will take comments received into consideration as part of its feasibility study on Dealer Trust, called for in the 2018 Farm Bill. The number of total comments matters, as does the quality. While LMA will submit comments as an association, hearing from impacted individuals will be more persuasive.

 What to Include in Comments
The best comments are those that are professional, concise, and personal to the submitter. Begin by identifying yourself and your role in the livestock marketing industry. Then clearly explain your position on Dealer Trust.Big Picture:
Current law does not adequately protect against livestock dealer default. Unpaid sellers should have the ability to reclaim livestock not paid for or, if resold, proceeds/receivables.

Big Picture:

  • Current law does not adequately protect against livestock dealer default. Unpaid sellers should have the ability to reclaim livestock not paid for or, if resold, proceeds/receivables.
  • It is not right that sellers bear additional risk of having to pay back 90 days’ worth of money already received through preferential transfer of bankruptcy claims.
  • A Dealer Trust would provide livestock sellers a valuable payment recovery tool in the case of a dealer default.
  • Talk about your personal experiences.
    • Have you had a dealer payment default and difficulty achieving recovery? What was the bond claim recovery? Could priority in livestock sold in cash sales or proceeds from those livestock have improved your recovery? 

Comments can also be mailed to:
Brett Offutt, Chief Legal Officer/Policy Advisor
Packers and Stockyards Division,
Fair Trade Practices Program, Agricultural Marketing
U.S. Department of Agriculture
1400 Independence Avenue SW, Room 2507, STOP 3601
Washington, DC 20250

Comments should make reference to Document No. AMS–FTPP–19–0037, published in the Federal Register Volume 84, Number 10, on April 25, 2019, on page 17374.

 

Contact
LMA members with questions or who would like help submitting comments should contact LMA Vice President of Government and Industry Affairs Chelsea Good at cgood@lmaweb.com or 816-305-9540.

 

Learn more about how to comment and specific Packer and Stockyards questions asked here – LMA Member Alert – DT Comment Guidance

Dealer Trust – Common Industry Questions

Dealer Trust Comprehensive Background


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  • Members get access to exclusive information on this page. Are you a member? If so, click here to log in.
    If you have any questions about these resources or other industry information or legal issues, contact LMA VP of Government and Industry Affairs Chelsea Good at cgood@lmaweb.com or (816) 305-9540 or LMA legal counsel Jara Settles at jsettles@lmaweb.com or (816) 891-0502. You also can talk to LMA VP of Membership Services Kristen Parman or your LMA Regional Executive Officer about these issues.

     

    Members get access to exclusive information on this page. Are you a member? If so, click here to log in.

    If you have any questions about these resources or other industry information or legal issues, contact LMA VP of Government and Industry Affairs Chelsea Good at cgood@lmaweb.com or (816) 305-9540 or LMA legal counsel Jara Settles at jsettles@lmaweb.com or (816) 891-0502. You also can talk to LMA VP of Membership Services Kristen Parman or your LMA Regional Executive Officer about these issues.