A Livestock Dealer Trust was established in the omnibus spending bill passed by Congress last month. This gives unpaid sellers of livestock additional protection, but it only applies if the entity being sold to is a livestock dealer. “As long as you’re selling to a livestock dealer, or an agent for a dealer, that’s when this applies,” says Chelsea Good, vice president of government and industry affairs, Livestock Marketing Association. “If you’re selling to a packer, the same protection applies under existing law.” Association General Counsel Jara Settles says this legislative fix should decrease litigation costs for people defending meritless preferential transfer claims. “Most can withstand a $50,000 or $100,000 loss from one week’s worth of cattle. What they couldn’t withstand was millions of dollars that could of been pulled back because of preferential transfer claims.” Listen to the story.