PASA Trust

Last Updated: Jun 7, 2019

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The P&S Act establishes trust protection for certain producers and growers doing business with packers and live poultry dealers. Two trusts, a packer trust and a poultry trust, are authorized in the Packers and Stockyards Act (P&S Act). The packer trust protects cash sellers of livestock. It does so by making the cash sellers' rights to specific assets of the packer legally superior to the interests of any secured lenders to whom the packer offered those assets as collateral for loans. Trust claims asserted for purchases of meat food products as purchases of "dead livestock" have been determined invalid. Similarly, the poultry trust protects live poultry growers and cash sellers of live poultry. It does so by making their rights to specific assets of the live poultry dealer legally superior to the interests of any secured lenders to whom the live poultry dealer offered those assets as collateral for loans. (Source: www.gipsa.usda.gov/psp/rights.aspx).