Producers Out Money Because Of
FBO Urged To Respond Quickly

DENVER — Producers who have sold cattle to Future Beef but not been paid for them must act now to preserve the chance of being paid as the company moves through its forced liquidation, says National Cattlemen’s Beef Association spokesman Bryan Dierlam. Dierlam is the NCBA director of legislative affairs. The U.S. Bankruptcy Court in Denver at the start of August ordered Future Beef to cease operations.

"NCBA has been monitoring the Future Beef situation for quite some time and has been in regular contact with staff of GIPSA to ensure that sellers of livestock are protected in accordance with the law," said Dierlam.

In essence, assets of packers are held in trust to protect unpaid sellers of livestock. To preserve the right to the trust, time is of the essence. Producers should contact attorneys for advice on the legal filings required to preserve their right to the trust. Filings for non-payment must be made within 30 business days of not receiving payment and 15 business days of being notified of a non-sufficient funds check.

"Business days" include all regular business days including Saturday, but exclude Sunday and federal holidays.

USDA has indicated that the following information is of extreme importance to GIPSA if producers want to preserve their right to the trust:

— Date the actual transaction took place

— Date the livestock were transferred to the packer

— Date payment was due to the producer

— Date final payment price was determined if sold on rail, yield and grade, or on a formula or other method of price determination.

Dierlam said this situation highlights the need for a dealer’s trust, something NCBA and the Grain Inspection, Packers and Stockyards Administration staff have been pursuing through Congress for some time now.

Producers with questions may contact Dierlam in NCBA’s Washington office at (202) 347-0228.