Feasibility Study on Livestock Dealer Statutory Trust, 17374-17375 [2019-08350]

Download as PDF 17374 Notices Federal Register Vol. 84, No. 80 Thursday, April 25, 2019 This section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section. DEPARTMENT OF AGRICULTURE Agricultural Marketing Service [Document No. AMS–FTPP–19–0037] Feasibility Study on Livestock Dealer Statutory Trust Agricultural Marketing Service, USDA. ACTION: Notice: Request for information. AGENCY: The Agricultural Marketing Service (AMS) of the Department of Agriculture (USDA), is soliciting comments on the feasibility of establishing a livestock dealer statutory trust. DATES: Comments must be received by June 24, 2019. ADDRESSES: Interested persons are invited to submit written comments via the internet at http:// www.regulations.gov or to S. Brett Offutt, Chief Legal Officer/Policy Advisor, Packers and Stockyards Division, Fair Trade Practices Program, Agricultural Marketing Service, U.S. Department of Agriculture, 1400 Independence Avenue SW, Room 2507, STOP 3601, Washington, DC 20250. Comments should make reference to the date and page number of this issue of the Federal Register and will be made available for public inspection at the above office during regular business hours. Please be advised that all comments submitted in response to this notice will be included in the record and will be made available to the public on the internet via http://www.regulations.gov. Also, the identity of the individuals or entities submitting the comments will be made public. FOR FURTHER INFORMATION CONTACT: S. Brett Offutt, Chief Legal Officer/ Policy Advisor, Packers and Stockyards Division, Fair Trade Practices Program, Agricultural Marketing Service, U.S. Department of Agriculture, telephone khammond on DSKBBV9HB2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 16:25 Apr 24, 2019 Jkt 247001 (202) 690–4355, email s.brett.offutt@ usda.gov. SUPPLEMENTARY INFORMATION: Background Section 12103 of the Agriculture Improvement Act of 2018 (Pub. L. 115– 334), the 2018 Farm Bill, charged the Secretary with conducting a study to determine the feasibility of establishing a livestock dealer statutory trust. Section 12103 requires that the study: (1) Analyze how the establishment of a livestock dealer statutory trust would affect buyer and seller behavior in markets for livestock (as defined in section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182)); (2) Examine how the establishment of a livestock dealer statutory trust would affect seller recovery in the event of a livestock dealer payment default; (3) Consider what potential effects a livestock dealer statutory trust would have on credit availability, including impacts on lenders and lending behavior and other industry participants; (4) Examine unique circumstances common to livestock dealers and how those circumstances could impact the functionality of a livestock dealer statutory trust; (5) Study the feasibility of the industrywide adoption of electronic funds transfer or another expeditious method of payment to provide sellers of livestock protection from nonsufficient funds payments; (6) Assess the effectiveness of statutory trusts in other segments of agriculture, whether similar effects could be experienced under a livestock dealer statutory trust, and whether authorizing the Secretary to appoint an independent trustee under the livestock dealer statutory trust would improve seller recovery; (7) Consider the effects of exempting dealers with average annual purchases under a de minimis threshold from being subject to the livestock dealer statutory trust; and (8) Analyze how the establishment of a livestock dealer statutory trust would affect the treatment of sellers of livestock as it relates to preferential transfer in bankruptcy. The study will be conducted by the U.S. Department of Agriculture’s Agricultural Marketing Service (AMS). AMS has regulatory authority over two statutes that contain statutory trusts: The Packers and Stockyards (P&S) Act PO 00000 Frm 00001 Fmt 4703 Sfmt 4703 and the Perishable Agricultural Commodities Act (PACA). The statutory PACA trust (7 U.S.C. 449e(c)) requires commission merchants, dealers, and brokers to hold perishable agricultural commodity inventory, products, receivables, and proceeds in trust for the benefit of unpaid produce sellers. The P&S Act currently includes two trusts: The packer trust (7 U.S.C. 196), which requires packers to hold livestock, inventory, receivables and proceeds in trust for unpaid cash sellers of livestock; and the poultry trust (7 U.S.C. 197), which requires live poultry dealers to hold poultry, inventories, receivables, and proceeds in trust for unpaid cash sellers or poultry growers. The P&S Act also regulates the business practices of livestock dealers, but livestock dealers are not currently subject to a statutory trust provision. Section 301(d) of the P&S Act (7 U.S.C. 201), defines a ‘‘dealer’’ as ‘‘any person, not a market agency, engaged in the business of buying or selling in commerce livestock, either on his own account or as the employee or agent of the vendor or purchaser.’’ AMS is seeking comments to assist it in determining the feasibility of establishing a livestock dealer statutory trust. Commenters may address any or all of the eight (8) key components of the study by responding to the following questions: (1) How would the establishment of a livestock dealer statutory trust affect buyer and seller behavior in markets for livestock? (2) How would the establishment of a livestock dealer statutory trust affect seller recovery in the event of a livestock dealer payment default? (3) What potential effects would a livestock dealer statutory trust have on credit availability, including impacts on lenders and lending behavior and other industry participants? (4) How would the unique circumstances common to livestock dealers impact the functionality of a livestock dealer statutory trust? (5) Is industry-wide adoption of electronic funds transfer or another expeditious method of payment feasible, and would such adoption provide sellers of livestock with protection from nonsufficient funds payments? (6) How effective are statutory trusts in other segments of agriculture? Could similar effects be experienced under a E:\FR\FM\25APN1.SGM 25APN1 Federal Register / Vol. 84, No. 80 / Thursday, April 25, 2019 / Notices livestock dealer statutory trust? Would seller recovery improve if the Secretary was authorized to appoint an independent trustee under the livestock dealer statutory trust? (7) Should dealers with average annual purchases under a de minimis threshold be exempt from being subject to the livestock dealer statutory trust? What purchase level should be considered for exemption? What effect would such an exemption have on the effectiveness of a livestock dealer statutory trust? (8) How would the establishment of a livestock dealer statutory trust affect the treatment of sellers of livestock as related to preferential transfers in bankruptcy? This notice provides for a 60-day period for interested parties to comment on the components of the study. Authority: Sec. 12103, Pub. L. 115–334, 132 Stat. 4490. Dated: April 22, 2019. Bruce Summers, Administrator, Agricultural Marketing Service. [FR Doc. 2019–08350 Filed 4–24–19; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF AGRICULTURE Submission for OMB Review; Comment Request khammond on DSKBBV9HB2PROD with NOTICES April 22, 2019. The Department of Agriculture has submitted the following information collection requirement(s) to OMB for review and clearance under the Paperwork Reduction Act of 1995, Public Law 104–13. Comments are requested regarding (1) whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) the accuracy of the agency’s estimate of burden including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. Comments regarding this information collection received by May 28, 2019 will be considered. Written comments should be addressed to: Desk Officer for Agriculture, Office of Information and Regulatory Affairs, Office of Management and Budget (OMB), OIRA_ VerDate Sep<11>2014 16:25 Apr 24, 2019 Jkt 247001 Submission@omb.eop.gov or fax (202) 395–5806 and to Departmental Clearance Office, USDA, OCIO, Mail Stop 7602, Washington, DC 20250– 7602. Copies of the submission(s) may be obtained by calling (202) 720–8958. An agency may not conduct or sponsor a collection of information unless the collection of information displays a currently valid OMB control number and the agency informs potential persons who are to respond to the collection of information that such persons are not required to respond to the collection of information unless it displays a currently valid OMB control number. Food and Nutrition Service Title: 7 CFR part 215—Special Milk Program for Children. OMB Control Number: 0584–0005. Summary of Collection: Section 3 of the Child Nutrition Act (CNA) of 1966 (Pub. L. 89–642, as amended; 42 U.S.C. 1772) authorizes the Special Milk Program (SMP) for Children. It provides for appropriation of such sums as may be necessary to enable the Secretary of Agriculture, under such rules and regulations as the Secretary may deem in the public interest, to encourage consumption of fluid milk by children in the United States in (1) nonprofit schools of high school grade and under, and (2) nonprofit nursery schools, child care centers, settlement houses, summer camps, and similar nonprofit institutions devoted to the care and training of children, which do not participate in a food service program authorized under the CNA or the National School Lunch Act. Need and Use of the Information: The SMP is administered at the State, school food authority (SFA), and child care institution levels. The Food and Nutrition Service (FNS) collects information concerning the operation of the program including the submission of applications and agreements, submission and payment of claims, and the maintenance of records. Without this information FNS would not be able to reimburse schools and institutions in a timely manner to allow them to properly administer the program. In addition, data reporting would be delayed and the timely monitoring of program funding and program trends would be affected. Description of Respondents: State, Local, and Tribal Government. Number of Respondents: 3,499. Frequency of Responses: Recordkeeping; Reporting: On Occasion, Monthly, and Annually. PO 00000 Frm 00002 Fmt 4703 Sfmt 4703 17375 Total Burden Hours: 13,325. Ruth Brown, Departmental Information Collection Clearance Officer. [FR Doc. 2019–08344 Filed 4–24–19; 8:45 am] BILLING CODE 3410–30–P DEPARTMENT OF AGRICULTURE Animal and Plant Health Inspection Service [Docket No. APHIS–2019–0021] Notice of Request for Reinstatement of an Information Collection; National Animal Health Monitoring System; Swine 2020 Study Animal and Plant Health Inspection Service, USDA. ACTION: Reinstatement of an information collection; comment request. AGENCY: In accordance with the Paperwork Reduction Act of 1995, this notice announces the Animal and Plant Health Inspection Service’s intention to request the reinstatement of an information collection to conduct the National Animal Health Monitoring System’s Swine 2020 Study. DATES: We will consider all comments that we receive on or before June 24, 2019. SUMMARY: You may submit comments by either of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov/ #!docketDetail;D=APHIS-2019-0021. • Postal Mail/Commercial Delivery: Send your comment to Docket No. APHIS–2019–0021, Regulatory Analysis and Development, PPD, APHIS, Station 3A–03.8, 4700 River Road Unit 118, Riverdale, MD 20737–1238. Supporting documents and any comments we receive on this docket may be viewed at http:// www.regulations.gov/#!docketDetail; D=APHIS-2019-0021 or in our reading room, which is located in Room 1141 of the USDA South Building, 14th Street and Independence Avenue SW, Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 799–7039 before coming. ADDRESSES: For information on the Swine 2020 Study, contact Mr. Bill Kelley, Program Analyst, Center for Epidemiology and Animal Health, VS, 2150 Centre Avenue, Building B, Fort Collins, CO 80524; (970) 494–7270. For more FOR FURTHER INFORMATION CONTACT: E:\FR\FM\25APN1.SGM 25APN1

Agencies

[Federal Register Volume 84, Number 80 (Thursday, April 25, 2019)]
[Notices]
[Pages 17374-17375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08350]


========================================================================
Notices
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains documents other than rules 
or proposed rules that are applicable to the public. Notices of hearings 
and investigations, committee meetings, agency decisions and rulings, 
delegations of authority, filing of petitions and applications and agency 
statements of organization and functions are examples of documents 
appearing in this section.

========================================================================


Federal Register / Vol. 84 , No. 80 / Thursday, April 25, 2019 / 
Notices

[[Page 17374]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Document No. AMS-FTPP-19-0037]


Feasibility Study on Livestock Dealer Statutory Trust

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice: Request for information.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service (AMS) of the Department of 
Agriculture (USDA), is soliciting comments on the feasibility of 
establishing a livestock dealer statutory trust.

DATES: Comments must be received by June 24, 2019.

ADDRESSES: Interested persons are invited to submit written comments 
via the internet at http://www.regulations.gov or to S. Brett Offutt, 
Chief Legal Officer/Policy Advisor, Packers and Stockyards Division, 
Fair Trade Practices Program, Agricultural Marketing Service, U.S. 
Department of Agriculture, 1400 Independence Avenue SW, Room 2507, STOP 
3601, Washington, DC 20250. Comments should make reference to the date 
and page number of this issue of the Federal Register and will be made 
available for public inspection at the above office during regular 
business hours.
    Please be advised that all comments submitted in response to this 
notice will be included in the record and will be made available to the 
public on the internet via http://www.regulations.gov. Also, the 
identity of the individuals or entities submitting the comments will be 
made public.

FOR FURTHER INFORMATION CONTACT:  S. Brett Offutt, Chief Legal Officer/
Policy Advisor, Packers and Stockyards Division, Fair Trade Practices 
Program, Agricultural Marketing Service, U.S. Department of 
Agriculture, telephone (202) 690-4355, email [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Section 12103 of the Agriculture Improvement Act of 2018 (Pub. L. 
115-334), the 2018 Farm Bill, charged the Secretary with conducting a 
study to determine the feasibility of establishing a livestock dealer 
statutory trust. Section 12103 requires that the study: (1) Analyze how 
the establishment of a livestock dealer statutory trust would affect 
buyer and seller behavior in markets for livestock (as defined in 
section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182)); 
(2) Examine how the establishment of a livestock dealer statutory trust 
would affect seller recovery in the event of a livestock dealer payment 
default; (3) Consider what potential effects a livestock dealer 
statutory trust would have on credit availability, including impacts on 
lenders and lending behavior and other industry participants; (4) 
Examine unique circumstances common to livestock dealers and how those 
circumstances could impact the functionality of a livestock dealer 
statutory trust; (5) Study the feasibility of the industry-wide 
adoption of electronic funds transfer or another expeditious method of 
payment to provide sellers of livestock protection from nonsufficient 
funds payments; (6) Assess the effectiveness of statutory trusts in 
other segments of agriculture, whether similar effects could be 
experienced under a livestock dealer statutory trust, and whether 
authorizing the Secretary to appoint an independent trustee under the 
livestock dealer statutory trust would improve seller recovery; (7) 
Consider the effects of exempting dealers with average annual purchases 
under a de minimis threshold from being subject to the livestock dealer 
statutory trust; and (8) Analyze how the establishment of a livestock 
dealer statutory trust would affect the treatment of sellers of 
livestock as it relates to preferential transfer in bankruptcy.
    The study will be conducted by the U.S. Department of Agriculture's 
Agricultural Marketing Service (AMS). AMS has regulatory authority over 
two statutes that contain statutory trusts: The Packers and Stockyards 
(P&S) Act and the Perishable Agricultural Commodities Act (PACA). The 
statutory PACA trust (7 U.S.C. 449e(c)) requires commission merchants, 
dealers, and brokers to hold perishable agricultural commodity 
inventory, products, receivables, and proceeds in trust for the benefit 
of unpaid produce sellers. The P&S Act currently includes two trusts: 
The packer trust (7 U.S.C. 196), which requires packers to hold 
livestock, inventory, receivables and proceeds in trust for unpaid cash 
sellers of livestock; and the poultry trust (7 U.S.C. 197), which 
requires live poultry dealers to hold poultry, inventories, 
receivables, and proceeds in trust for unpaid cash sellers or poultry 
growers.
    The P&S Act also regulates the business practices of livestock 
dealers, but livestock dealers are not currently subject to a statutory 
trust provision. Section 301(d) of the P&S Act (7 U.S.C. 201), defines 
a ``dealer'' as ``any person, not a market agency, engaged in the 
business of buying or selling in commerce livestock, either on his own 
account or as the employee or agent of the vendor or purchaser.''
    AMS is seeking comments to assist it in determining the feasibility 
of establishing a livestock dealer statutory trust. Commenters may 
address any or all of the eight (8) key components of the study by 
responding to the following questions:
    (1) How would the establishment of a livestock dealer statutory 
trust affect buyer and seller behavior in markets for livestock?
    (2) How would the establishment of a livestock dealer statutory 
trust affect seller recovery in the event of a livestock dealer payment 
default?
    (3) What potential effects would a livestock dealer statutory trust 
have on credit availability, including impacts on lenders and lending 
behavior and other industry participants?
    (4) How would the unique circumstances common to livestock dealers 
impact the functionality of a livestock dealer statutory trust?
    (5) Is industry-wide adoption of electronic funds transfer or 
another expeditious method of payment feasible, and would such adoption 
provide sellers of livestock with protection from nonsufficient funds 
payments?
    (6) How effective are statutory trusts in other segments of 
agriculture? Could similar effects be experienced under a

[[Page 17375]]

livestock dealer statutory trust? Would seller recovery improve if the 
Secretary was authorized to appoint an independent trustee under the 
livestock dealer statutory trust?
    (7) Should dealers with average annual purchases under a de minimis 
threshold be exempt from being subject to the livestock dealer 
statutory trust? What purchase level should be considered for 
exemption? What effect would such an exemption have on the 
effectiveness of a livestock dealer statutory trust?
    (8) How would the establishment of a livestock dealer statutory 
trust affect the treatment of sellers of livestock as related to 
preferential transfers in bankruptcy?
    This notice provides for a 60-day period for interested parties to 
comment on the components of the study.

    Authority: Sec. 12103, Pub. L. 115-334, 132 Stat. 4490.

    Dated: April 22, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-08350 Filed 4-24-19; 8:45 am]
BILLING CODE 3410-02-P