North Dakota Ag Connection - Hoeven: USDA Implements Dealer Trust to Protect Farmers Against Defaults

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Hoeven: USDA Implements Dealer Trust to Protect Farmers Against Defaults
North Dakota Ag Connection - 02/25/2021

Senator John Hoeven, ranking member of the Senate Agriculture Appropriations Committee and a member of the Senate Agriculture Committee, issued the following statement Wednesday after the U.S. Department of Agriculture's (USDA) Agriculture Marketing Service (AMS) implemented a livestock statutory dealer trust to ensure unpaid sellers of livestock are given priority in collecting receivables in the event of a dealer default.

As then-chairman of the Senate Agriculture Appropriations Committee, Hoeven worked to secure the establishment of this trust as part of the year-end legislation passed by Congress in December. Hoeven, along with Senator Kevin Cramer, also cosponsored the Securing All Livestock Equitably (SALE) Act, bipartisan legislation introduced in the 116th Congress to address the problem of livestock dealer payment default.

"When dealers become insolvent, ranchers too often have been left unpaid and without options," Hoeven said. "We worked to establish this dealer trust, as it will provide an important layer of protection for our livestock producers and help ensure they are paid their due."

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