OKLAHOMA CITY—The Securing All Livestock Equitably (SALE) Act was included in the most recent Covid-19 relief package that passed Congress Dec. 21. The bipartisan legislation, originally sponsored by Sen. Jim Inhofe (R-OK), addresses dealer payment defaults in the livestock industry.
Quick turnaround between the purchase and resale of cattle by a dealer often leaves the original livestock owners with little recourse if a dealer defaults on a purchase. The cattle have often already been resold. The SALE Act establishes dealer statutory trusts, mimicking existing packer statutory trusts, for the purpose of ensuring that cattle sellers receive payment should a livestock dealer become insolvent.
“The creation of dealer statutory trusts to ensure cattle sellers receive payment is extremely important to the livestock industry,” said AFR/OFU Cooperative President Scott Blubaugh. “A default event can decimate family-owned cattle operations and related businesses, ripple through the industry and have a long-lasting negative effect on the rural economy. The SALE Act will reduce the harm of these default events. I commend Sen. Inhofe for his leadership on this issue and his dedication to rural Oklahoma and the agriculture industry as a whole.”
AFR/OFU Cooperative is a membership services organization established in 1905 as Oklahoma Farmers Union. AFR/OFU provides educational, legislative and cooperative programs across the state and serves as a watchdog for Oklahoma’s family farmers and ranchers and rural communities. The organization is actively supportive of the state’s agricultural industry and rural population with membership consisting of farmers actively involved in production agriculture and non-farmers adding their voice in support of AFR/OFU principles.