Source:  Lisa M. Keefe, MEATINGPLACE.COM, 12/23/10

The National Cattlemen's Beef Association on Wednesday sent letters to USDA and the federal Small Business Administration asking them to provide financial assistance to cattle producers affected by the Eastern Livestock Co.’s bankruptcy filing.

New Albany, Ind.-based Eastern owed more than $130 million to 743 sellers in 30 states, NCBA says in a news release. Many of the sellers are family operations. NCBA contends that the $800,000 bond that GIPSA required of Eastern is “woefully inadequate” to cover its financial obligations.

Specifically, NCBA is asking USDA to provide emergency access to short-term, low-interest and/or government-backed loan programs, and for SBA to provide a list of its loan programs that may help producers keep their operations running.

“Hundreds of cattle producers and marketers, through no fault of their own, have been financially harmed by Eastern’s bankruptcy,” NCBA President Steve Foglesong said in the release. “Without some short-term financial assistance … many operations may be forced to shut down or sell off assets to cover costs. NCBA simply isn’t willing to let that happen.”

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