Both have representatives in the state who are responsible for soliciting cattle, videoing or taking pictures of the livestock for sale, lining up transportation, weighing the livestock, and lining up health and brand inspections of the animals. Both are required by USDA to have Packer and Stockyards Clause I bonds. Both are required to have custodial accounts and are subject to the same Packers and Stockyard Administration regulations. The major difference is in the procedure for selling cattle. Instead of having a live auction, the Internet livestock auction s cattle are listed on the company s web site, and bids on livestock occur over time.
Most web sites show the owner s asking bid.
When buyer and seller agree to a price, the Internet auction market issues a check to the seller from a custodial account. However, as I said before, both are considered auctions and must follow the same Packer and Stockyards Administration regulations. The similarities in the way satellite video auctions and Internet livestock auctions do business make it only fitting that they be licensed in the same manner. I would be happy to answer any questions.