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Congressman Roger Marshall

Representing the 1st District of Kansas

Marshall authors S.A.L.E. Act to protect livestock producers and sale barns

October 17, 2017
Press Release

(WASHINGTON, D.C.) – Congressman Roger Marshall has introduced the bipartisan Securing All Livestock Equitably (S.A.L.E.) Act, which will offer protections to sale barns and livestock producers from the recurring trend of defaults of livestock dealers. The S.A.L.E. Act would place livestock sold to a dealer, and proceeds/receivables from already sold livestock, in a trust until the original seller has been paid, ensuring that producers and livestock auctions have a legal recourse in the event of a dealer default and/or bankruptcy. 

One high-profile example of a livestock dealer defaulting on producers and livestock markets was the case of the Eastern Livestock Company in Kentucky. In that case, producers and livestock markets received 5 cents for every sales dollar in bond payments.

Congressman Marshall, the author of this bill, said:

“Every weekend for two years growing up, I spent my Saturdays working at a sale barn in El Dorado, Kansas. And while that was hard work, today's world of cattle is a little more complicated than when I was sorting heifers and steers. Unfortunately, our friends at those sale barns are often left holding hot checks. This bill will help protect those businesses and the producers working with them.

Current law puts our livestock producers and markets in the precarious position of being cheated out of millions of dollars of cattle by unfairly giving creditors priority over cattle they purchased, but never paid for. This bill would assure that producers and markets are paid for cattle.”

Congressman David Rouzer (R-NC), Chairman of the House Ag Subcommittee on Livestock and Foreign Agriculture, said:

"Farmers and ranchers frequently have their livelihoods tied up in large livestock transactions. Putting in place protections in the transaction process will be vital to safeguarding our cattle producers and the overall market. I'm pleased to join my colleague, Congressman Roger Marshall, in introducing this bill and look forward to working with the Agriculture Committee and our other colleagues to make it law."

Congressman James Comer (R-KY), who was Kentucky's Ag Commissioner during the case of the Eastern Livestock Company, said:

“Having seen firsthand the devastation so many cattle farmers in Kentucky faced as a result of the Eastern Livestock scandal, I proudly support this amendment to the Packers and Stockyards Act. The livestock business can be difficult as it is. The last thing ranchers and livestock sellers need is to be left holding the bag when another business fails. This common-sense legislation provides them the protection they need against a dealer default and a greater opportunity to be made whole.”

See more HERE.

Original co-sponsors:

Rep. Rouzer, David [R-NC-7]

Rep. Comer, James [R-KY-1]

Rep. Young, David [R-IA-3]

Rep. Hartzler, Vicky [R-MO-4]

Rep. Smith, Jason [R-MO-8]

Rep. King, Steve [R-IA-4]

Rep. Thompson, Glenn [R-PA-5]

Rep. Yoho, Ted S. [R-FL-3]

Rep. Costa, Jim [D-CA-16]

Rep. Bustos, Cheri [D-IL-17]

Rep. Sewell, Terri A. [D-AL-7]

Rep. Soto, Darren [D-FL-9]

Rep. Arrington, Jodey C. [R-TX-19]

Rep. Lucas, Frank D. [R-OK-3]