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Livestock Marketing Association says prompt payment requirement updates are needed

The Livestock Marketing Association wants to see modernization of the payment structure within the Packers and Stockyards Act.

LMA’s Chelsea Good tells Brownfield a move away from mail service would help increase efficiency and security of livestock auction payments. “Unfortunately, we’re seeing a lot of checks getting stolen out of the mail and then washed and used fraudulently,” she said. “That’s really on the rise.”

During a presentation at the National Association of State Departments of Agriculture (NASDA) annual meeting in Cheyenne, Wyoming this week, she told state ag directors, secretaries, and commissioners mail service accounts for more than 90% of payments.

Good says some of their members have expressed frustration about delays. “People are realizing that a letter that you put in the mail that used to take a couple days, it’s taking a week to a couple of weeks and sometimes it’s getting lost more and more often.”

She says LMA has been working with lawmakers on some legislative language that would update prompt payment laws. “In addition to a check in the mail by the close of the next business day, it would allow an ACH (Automated Clearing House transfer) by the close of the second business day or a wire transfer by the close of the third business day.”

Good spoke to Brownfield following her presentation with NASDA members.