Live Poultry

Growers’ 

& Sellers’ 

Rights

Grain Inspection,

 Packers and Stockyards 

Administration

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, 

national origin, gender, religion, age, disability, political beliefs, 

sexual orientation, and marital or familial status. (Not all prohibited bases apply to all Programs.) Persons with disabilities 

who require alternative means for communication of program 

information (braille, large print, audiotape, etc.) should contact 

USDA’s TARGET Center at 202-720-2600 (voice and TDD).

United States 

Department of Agriculture

www.gipsa.usda.gov

Please direct comments or questions about this 

publication to:

United States Department of Agriculture

Grain Inspection, Packers and Stockyards Administration

1400 Independence Avenue S.W.

Washington DC 20250-3601

(202) 720-0219

www.gipsa.usda.gov

GIPSA Toll-Free HOTLINE

1-800-998-3447

What can USDA do about live poultry dealers that do not pay for poultry?

USDA can notify the live poultry dealer of its 

responsibility to hold subject assets for the benefi t of unpaid growers and cash sellers of poultry. USDA can penalize a live poultry dealer 

for failing to pay for poultry it purchased from 

a cash seller or obtained from a grower under 

a growing arrangement, since failure to pay for 

poultry is a violation of the P&S Act. Also, 

while these proceedings are in progress, USDA 

can ask a court to enjoin a live poultry dealer 

from future violations of the P&S Act. 

However, USDA cannot furnish you with a lawyer to collect payment for you, or compel a live 

poultry dealer to pay you. 

What can courts do about live poultry dealers that do not pay for poultry?

A district court of the United States (or a bankruptcy court if the live poultry dealer is in bankruptcy) can order a live poultry dealer to hold 

specifi c assets in trust for the benefi t of unpaid 

growers or cash sellers of poultry who have given the required notices. The court can only order this upon receiving a written complaint. As 

an unpaid grower or cash seller of poultry, you 

may fi le the necessary written complaint with 

the court. 

What should you do after a court issues a 

trust order against a live poultry dealer?

As an unpaid grower or cash seller of live poultry, you should petition the court to order payment from the assets being held in trust. You 

should fi le this petition even if you already notifi ed the live poultry dealer and P&SP that the 

live poultry dealer failed to pay you. If you do 

not fi le a petition, the court may order that the 

assets be distributed to other unpaid growers or 

cash sellers who did fi le a petition. November 2008

This publication does not create or confer any rights for or 

on any person. Nor does it operate to bind the public. You 

can use an alternative approach, if the approach satisfi es 

the requirements of the P&S Act, and regulations. See 

7 U.S.C. 182 (a) (8) - (10), 197, 224, 228a, and 228b-1 

through 228b-4, and 9 CFR 201.43, which relate to content 

in this publication. You may also want to see 9 CFR 203.15. 
What is the poultry trust? 

The poultry trust is a statutory trust authorized 

in the Packers and Stockyards Act (P&S Act) 

to remedy the burden placed on public interests 

by live poultry dealers’ inadequate financing arrangements. The trust protects certain live poultry growers and sellers 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. 

Whose rights does the poultry trust protect?

Live poultry growers and cash sellers of poultry. 

If you raise and care for live poultry for delivery, in accordance with another’s instructions, 

for slaughter, or you sell live poultry on a cash 

basis for slaughter, your rights are protected by 

the poultry trust. A cash sale is one in which 

you do not expressly extend credit to the buyer. 

Therefore, the poultry trust does not protect you 

if you, as a cash seller of poultry, extend credit 

to a live poultry dealer. 

The prompt payment provisions of the P&S Act 

permit poultry buyers and sellers to expressly 

agree, verbally or in writing, to payment terms 

other than those set out in the P&S Act. For example, you may give a live poultry dealer time 

to cover a check that you know is not good, or 

you may allow the live poultry dealer more time 

to make payment than permitted under the P&S 

Act. However, by agreeing to these terms, you 

may forfeit the benefit of the poultry trust, since 

your agreement may be considered an extension 

of credit rather than a cash sale.

Read documents carefully before signing. Credit agreements have sometimes been included in 

small print on receipts, scale tickets, and other 

documents. Therefore, you need to carefully 

read everything before you sign. Never sign 

anything you do not understand, or you could, 

unwittingly, forfeit the benefits of the poultry 

trust. 

How do you preserve your rights if you do 

not get paid? 

Notify the live poultry dealer and the nearest 

Packers and Stockyards Program (P&SP) regional office that the live poultry dealer failed to 

pay you for poultry. Your notice can be a letter, 

mailgram, or telegram, but it must be in writing. 

If you do not give the required written notice to 

both the live poultry dealer and P&SP, you will 

forfeit the benefits of the poultry trust. 

How quickly must you act to preserve your 

rights?

30 calendar days after payment was due. You 

must notify the live poultry dealer and P&SP of 

your claim within the 30 calendar days immediately following the day the live poultry dealer 

owed you payment. If you delivered poultry 

under a growing arrangement, the live poultry 

dealer owes you payment by the close of the 

15th day following the week in which the poultry is slaughtered. If you sold poultry on a cash 

basis, the live poultry dealer owes you payment 

by the close of the next business day following 

purchase. 

15 business days after payment instrument is 

not honored. You must notify the live poultry 

dealer and P&SP of your claim within the 15 

business days immediately following the day 

you received notice that the payment instrument 

was not honored. If the live poultry dealer gave 

you a payment instrument, you should properly 

present it for payment and receive notice that it 

is dishonored (for example, a bounced check), 

before you make this claim. 

Do not delay in giving written notice of your 

claim, or you will forfeit the benefits of the 

poultry trust.

What information should you include in your 

poultry trust claim?

Include the name and contact information of 

the live poultry dealer, your name and contact 

information, the date of the transaction(s) in 

which the live poultry dealer failed to pay you, 

the date you received notice that one or more 

payment instruments from the live poultry dealer were dishonored (if applicable), the amount 

of money the live poultry dealer owes you, and 

any other information necessary to support your 

trust claim.

What is a live poultry dealer? 

A live poultry dealer is someone who engages 

in the business of obtaining live poultry under 

a poultry growing arrangement, or by purchase, 

either for slaughter or for sale to another for 

slaughter.

Which live poultry dealers are subject to the 

poultry trust?

Live poultry dealers whose average annual purchases, sales or value of poultry produced under 

a growing arrangement exceed $100,000 are 

subject to the statutory trust provisions of the 

P&S Act. If you cannot determine if a live poultry dealer is subject, contact the nearest P&SP 

regional office for assistance. 

What assets of a live poultry dealer are subject to the poultry trust?

Poultry that a live poultry dealer bought in cash 

sales, poultry produced under growing arrangements, as well as inventories, receivables, and 

proceeds derived from that poultry are subject 

to the poultry trust. Other assets, such as plant 

equipment and buildings, are not subject to the 

poultry trust.