When you sell cattle, you assume you are going to get paid or get the cattle back. That is not guaranteed and producers get caught in a situation with no recourse.
A livestock industry group wants to create a guaranteed trust to protect livestock sellers. The U.S. Department of Agriculture is reviewing the feasibility in a 2018 Farm Bill mandate.
Under current law, many people in the livestock industry believe sellers of livestock are not adequately protected against livestock dealer defaults.
The Livestock Marketing Association (LMA) holds the belief that unpaid sellers should have the ability to reclaim their livestock if they have not been sold or if resold, have the right to claim the proceeds from those resales. Chelsea Good, vice president of government and industry affairs, recently explained the value in developing such a tool for vulnerable producers in the case of dealer default through appropriate legislative action. Good spoke to Ron Hays, of the Radio Oklahoma Network.
AUDIO: Profit Matters 7-3-19