Two trusts, a packer trust and a poultry trust, are authorized in the Packers and Stockyards Act (P&S Act). Congress authorized these trusts to remedy the burden placed on public interests by packers' and live poultry dealers' inadequate financing arrangements.
The packer trust protects cash sellers of livestock. It does so by making the cash sellers' rights to specific assets of the packer legally superior to the interests of any secured lenders to whom the packer offered those assets as collateral for loans. Similarly, the poultry trust protects live poultry growers and cash sellers of poultry. It does so by making their rights to specific assets of the live poultry dealer legally superior to the interests of any secured lenders to whom the live poultry dealer offered those assets as collateral for loans.
The most important action that sellers and growers must take to preserve their rights is to file timely written notice of their claim against the regulated entity who owes them. This written notice must be provided to GIPSA and the regulated entity who owes the seller or grower within a specified period after the transaction date(s). At a minimum, the written trust claims should include the following information:
- The packer or live poultry dealer's name and contact information;
- The seller or grower's name and contact information;
- The date of the transaction(s) in which the packer or live poultry dealer failed to pay for livestock or poultry;
- The date the seller or grower received notice that one or more payment instruments from the packer or live poultry dealer were dishonored (if applicable);
- The amount of money the packer or live poultry dealer owes the claimant for livestock or poultry; and
- Any other information necessary to support the seller or grower's trust claim.
The following publications provide more information about what livestock and poultry sellers and poultry growers must do to preserve their rights under the P&SP trusts:
Last updated 05/07/2007
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