A push to update prompt payment laws

A push to update prompt payment laws

The Livestock Marketing Association says the industry wants to move to more electronic transactions because slow mail service is delaying livestock payments.

But, Chelsea Good says that will require updates to prompt payment laws in the Packers and Stockyards Act.  “A lot of our sellers request a check that day, and get a check that day,” she says.  “And auctions are sitting there waiting for their money to come in the mail because of the way from payment works under the law.”

She tells Brownfield currently more than 90% of payments from livestock auctions come from checks in the mail.  “Packers, markets, and dealers must initiate payment by the close the next business day, but it doesn’t matter if it’s a check in the mail or wire transferred ACH,” she says.  “A lot of our auctions would really prefer a wire two days or even three days after the sale that money is going to be received much quicker than a check in the mail would be.”

Good says any updates to the Packers and Stockyards Act will have to come through Congressional action. 

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