Question: Are all packers subject to the Statutory Trust?
Answer: No. Only slaughtering packers operating in the United States whose average annual purchases exceed $500,000 are subject to the Statutory Trust.
Question: Without knowing how much the packer purchases annually, how could I find out whether this packer is subject to the Statutory Trust?
Answer: Contact us at the regional office that covers your state.
Question: I noticed that the definition of “livestock” includes the phrase “or dead.” If I sell meat products or livestock products to a packer, could I file a valid claim under the Statutory Trust?
Answer: No, the phrase “or dead” relates to live animals that died in transit. Meat products or livestock products are not livestock. You could not file a valid claim under the Statutory Trust for the sale of those products.
Question: How have courts interpreted the phrase “expressly extend credit” in the definition of a “cash sale?”
Answer: The United States Court of Appeals for the Third Circuit discussed this issue in its April 12, 2012 opinion (Case 11-3231, page 9) in re Empire Kosher Poultry, Inc. v. United States Department of Agriculture. The Circuit Judges concluded that, “a sale . . . is a cash sale unless a seller ‘directly, firmly, and explicitly state[s]’ its intent to extend credit.”