Congressman Frank Lucas is co-sponsoring legislation to protect sale barns and livestock producers from defaults of livestock dealers. The Securing All Livestock Equitably (SALE) Act was written by Congressman Roger Marshall of Kansas. Marshall identified defaults of livestock dealers becoming a trend which is impacting the bottom line of producers.
“Dealer defaults can financially ruin livestock sellers and ultimately destabilize confidence in cattle markets. I cosponsored the S.A.L.E. Act so that we can implement protections in the cattle transaction process to ensure producers and livestock marketers are fully compensated for their hard work,” said Lucas.
The measure, if passed, would place livestock sold to a dealer, and proceeds/receivables from already sold livestock, in a trust until the original seller has been paid. It ensures that producers and livestock auctions have a legal recourse in the event of a default or bankruptcy.
The cattle industry in Oklahoma brought in more than $4 billion in 2014 according to figures from the USDA.
