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PRESS RELEASE

LMA Applauds Congress for Passing Livestock Dealer Statutory Trust, Ensuring Payment Protection for Livestock Sellers

December 23, 2020

Washington, D.C.

The Livestock Marketing Association (LMA) applauds Congress for passing Dealer Statutory Trust in the COVID relief package. A Dealer Statutory Trust will provide sellers of livestock much needed payment protection during dealer payment defaults.  

“LMA is grateful for the tremendous leadership of Congress to correct a fundamental unfairness in the current law where livestock sellers often cannot get livestock back when payment does not come through,” said LMA President Larry Schnell. “This is a top priority issue for livestock auctions, which pay producers whether or not we are paid by buyers, and have been devastated by past defaults.”   

The creation of a Dealer Statutory Trust, modeled after the existing Packer Statutory Trust, will give unpaid sellers of livestock first priority in livestock or, if the livestock have already been resold, the proceeds/receivables from livestock. 

While this protection for livestock sellers has long been needed, the volatile down market in cattle prices due to COVID-19 increased the urgency of addressing this issue.  

 A special thanks goes to Senate Agriculture Committee Chairman Pat Roberts (R-KS) and House Agriculture Committee Chairman Collin Peterson (D-MN), both of whom have been instrumental in moving this legislation forward. Recognition is also due to the original lead co-sponsors of Securing All Livestock Equitably (SALE) Act, (H.R. 6067, S. 3419), which would create a Dealer Statutory Trust. Congressmen Roger Marshall (R–KS) and Jim Costa (D–CA) led this effort in the House and Senators Jim Inhofe (R–OK) and Tina Smith (D–MN) championed the cause in the Senate.  

Additional co-sponsors of the SALE Act include Representatives Don Bacon (R-NE), Sanford D. Bishop Jr. (D-GA), Anthony Brindisi (D-NY), Cheri Bustos (D-IL), Liz Cheney (R-WY), James Comer (R-KY), TJ Cox (D-CA), Angie Craig (D-MN), Eric A. Crawford (R-AR), Rodney Davis (R-IL), Jeff Fortenberry (R-NE), Jim Hagedorn (R-MN), Josh Harder (D-CA), Vicky Hartzler (R-MO), Dusty Johnson (R-SD), Trent Kelly (R-MS), and Terri A. Sewell (D-AL). Senators John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Kevin Cramer (R-ND), Steve Daines (R-MT), Michael B. Enzi (R-WY), Joni Ernst (R-IA), Deb Fischer (R-NE), Chuck Grassley (R-IA), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Doug Jones (D-AL), Jerry Moran (R-KS), Marco Rubio (R-FL), Ben Sasse (R-NE), Jon Tester (D-MT), and John Thune (R-SD) are additional co-sponsors of the SALE Act in the Senate. 


About the Livestock Marketing Association

The Livestock Marketing Association (LMA), headquartered in Overland Park, Kan., is North America’s leading, national trade association dedicated to serving its members in the open and competitive auction method of marketing livestock. Founded in 1947, LMA has more than 800 member businesses across the U.S. and Canada and remains invested in both the livestock and livestock marketing industries through member support, education programs, policy representation and communication efforts.



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Florida auction market bounces back after Category 3 hurricane

As Hurricane Idalia grew closer to Florida’s Big Bend on Monday, August 28 — just two days before it would hit land — many residents were prepping for the storm. But for Alvin “Ab” Townsend and his nephew Rick Greiner, there was a different kind of preparation taking place. Tuesday is sale day at their Townsend Livestock Market, and it was business as usual, despite the uncertainty of what might come. “I started calling some of our buyers,” Greiner says. “And as long as they were going to buy cattle, we were going to have a sale.” So, sell cattle they did. They got through 400 head before they needed to shut down and head home. Early Wednesday morning, the Category 3 hurricane made landfall. Greiner couldn’t get out of his house, but Townsend — along with his wife and sister — were able to drive to the auction market that’s been in the family for four generations. At first, he thought they were at the wrong place. “It didn’t look anything like our place,” Townsend says. “Everything was just on the dirt. The building, our pens, everything was just on the dirt.” Moving On  Before Wednesday had ended, the family had called John Kissee, regional executive officer at Livestock Marketing Association. As longtime members, as well as clients of the association’s Livestock Marketing Insurance Agency, they knew they were covered.  Kissee understood Ab and Rick would want to move quickly but took time to ensure all bases were covered, insurance-wise. Kissee called back the following day, as promised. He told them the tear down and clean up could begin after taking photos to document the damage. By Monday, excavators were scraping the slab where the auction market once stood. Greiner says they had no choice but to move quickly, and they had no intention of missing more than one sale day. They started getting pens up and brainstorming how they’d hold the following week’s auction with less-than-ideal infrastructure.  To be safe, they didn’t advertise. And yet, they still got 400 head. It went well and they doubled their numbers the following week. Of course, there were challenges to selling in such makeshift facilities — like the Tuesday it rained all day and there was no barn to offer cover. But Greiner says they remained grateful through it all. “You don’t have to look very far to see somebody who’s got it worse than what we had,” he says. “We’re just lucky to be back to work and selling good cattle for our good producers.” A Helping Hand Both men are quick to credit the role Livestock Marketing Insurance Agency played in their recovery efforts. “I wouldn’t want to imagine not having Mr. John to call,” Greiner says.  Townsend agrees. “The thing with insurance,” the third-generation auction market operator says, “is you don’t need it until something happens. But then when something happens you better thank the Good Lord you had it. Because what would we have done?” Not only did Kissee and the insurance adjuster make the process a breeze, but Townsend says it never felt like a business transaction. “They’re more than just a company,” he says. “LMIA is a group of people who cares.”