US livestock sellers to receive Agriprocessors trust payout

Previously unpaid livestock sellers are receiving full payment for animals sold to Iowa-based Agriprocessors Inc., which filed for bankruptcy last year, according to Agriculture Secretary Tom Vilsack.

The payouts, which totalled over US$2 million, will be taken out from the trust protection provisions of the Packers and Stockyards Act (P&S Act).

Under the P&S Act, packers are required to hold, in trust, all livestock inventories and receivables or proceeds from meat sales for the benefit of unpaid cash sellers.

Valid claims were filed by 24 sellers for sales of livestock to Agriprocessors between September 14 and October 24, 2008. Sellers began receiving payments on claims ranging from under US$1,000 to over US$500,000 on January 28.