Dealer Statutory Trust

The Dealer Statutory Trust was established under Section 318 of the Packers and Stockyards (P&S) Act and codified in U.S. Code Title 7, Chapter 9, Subchapter III, Section 217b. Enacted in 2021, the statute was intended to protect livestock sellers but has produced unintended consequences:

• It has delayed or prevented payment to sellers when dealers default.

• It has created compliance and operational challenges for dealers who pay promptly, particularly due to conflicts with existing clear title processes which affects financing agreements with agricultural lenders.

ALMDA continues to work on this concern including:

1. Clarify Who Is Covered by the Trust

2. Integrate the Trust with Existing Clear Title and UCC Law

3. Improve the Trust Process for Better Industry Outcomes