Enzi, Barrasso cosponsor legislation to protect livestock producers

Press Release

U.S. Senators Mike Enzi and John Barrasso, both R-Wyo., cosponsored bipartisan legislation that would help protect cattle producers. The Securing All Livestock Equitably (SALE) Act would address the problem of dealer payment default.

Quick turnaround between the purchase and resale of cattle by a dealer often leaves the rancher who originally owned the cattle with little recourse if a dealer defaults on a purchase--the livestock has often already been resold. The SALE Act would establish dealer statutory trusts, mimicking existing packer statutory trusts, for the purpose of ensuring that cattle sellers receive payment should a livestock dealer become insolvent.

"Many ranchers in Wyoming depend on livestock sales to survive but are left empty-handed if a dealer defaults on a sale," Enzi said. "This legislation would provide commonsense protections for livestock producers and stability for the overall market."

"In Wyoming and throughout the West, ranching operations are the backbone of many of our communities. For too long, cattle sellers have been left financially devastated when dealers default on a purchase of livestock," Barrasso said. "This bipartisan bill provides much needed accountability to this process and will make sure Wyoming's ranchers are fairly compensated for their livestock."

The 2018 Farm Bill contained a provision (Section 12103) directing the U.S. Department of Agriculture to conduct a study to determine the feasibility of establishing a livestock dealer statutory trust. The results of the study came out in December of 2019 and helped inform the senators' ongoing effort to establish the creation of a Livestock Dealer Statutory Trust.

The SALE Act is led by U.S. Senator Jim Inhofe, R-Okla., and has 18 bipartisan cosponsors including Enzi and Barrasso. Full text of the bill is available here.

Source