The Packers and Stockyards Act (PSA) of 1921, last amended in 2008, promotes fair business practices and competitive environments to market livestock, meat, and poultry. The USDA handles oversight activities for the PSA, including monitoring programs, reviews, and investigations. The PSA fosters fair competition, provides payment protection, and guards against deceptive and fraudulent trade practices that affect the movement and price of meat animals and their products.
Current provisions require livestock dealers in Michigan to be licensed with the Michigan Department of Agriculture and Rural Development and to prove they are bonded with PSA. Bonding requirements are equal to the average amount of business per week for the previous year. The PSA requires prompt payment before the close of the business day following the sale of livestock and transfer of possession. Recent challenges in the livestock industry have surfaced regarding inadequate bonding amounts, prompt payment and confusion over enforcement responsibility, which have led to discussions about the need to update the Act. Additionally, marketing arrangements have changed dramatically in recent years with carcass pricing, contract arrangements and retained ownership.
Ernie Birchmeier | 517-679-5335
AFBF: #312 Packers and Stockyards Acts
Packers and Stockyards Act