Livestock sellers, who sold animals to Agriprocessors, Inc. of Postville, Iowa, between Sept. 14 and Oct. 24 of 2008, are being paid in full. The payouts, total over $2 million. The money comes from the trust protection provisions of the Packers and Stockyards Act. The payout goes to those who sold animals but were not paid, just weeks before the company filed for Chapter 11 Bankruptcy Protection.
Under the Packers and Stockyards Act, packers are required to hold, in trust, all livestock inventories and receivables or proceeds from the sale of meat for the benefit of unpaid cash sellers. The "packer trust" provisions were added to the P&S Act by amendments in 1976 following packer failures that left producers unpaid for over 43 million in livestock sales.
Twenty-four sellers filed valid claims with the packer and with USDA's Grain Inspection, Packers and Stockyards Administration. Payments range from just under $1,000 to over $500,000.