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The Indiana State Board of Animal Health (BOAH) licenses livestock dealers and markets conducting business in Indiana. This brochure explains, in general terms, state requirements for livestock markets. All requirements are not included here; contact BOAH for additional, specific information.
A livestock "dealer" is anyone engaged in the business of buying, selling or negotiating the transfer of livestock. "Dealer" includes, but is not limited to, stockyards, auction markets, buying stations and concentration points. IC 15-2.1-2-13. Livestock dealers must be licensed under state law.
State law allows some exemptions to the livestock dealer license requirement:
The Indiana State Board of Animal Health issues livestock dealer licenses in three classifications:
Agents of market facilities and individual dealers must be listed on the license application. The principal may later add or delete an agent's name by sending a written request to the State Veterinarian's office for approval.
A livestock dealer may not designate an agent whose dealer license was suspended or revoked in any state within the last two years. A licensee must request the deletion of an agent from his license immediately upon learning of the revocation of an agent's dealer license by any state.
Any act or omission that falls within the livestock dealer's business relationship is considered an act of the principal license holder.
State law requires every dealer to execute and maintain a bond. Each dealer buying and selling livestock across state lines must obtain a U.S. Department of Agriculture, Packers and Stockyards bond as required by federal law. Further bond coverage is not required for those individuals if the bond amount and terms meet the requirements of Indiana law.
Indiana's required bond amount is equal to the nearest multiple of $5,000 above the average sales, purchases, and transfers of livestock by the dealer during two business days. Average amount is calculated based on 260 working days in the previous 12 months. Start-up or new businesses must estimate the amount, which is subject to adjustment.
Bond amount guidelines:
A blanket bond can be secured in lieu of individual bonds for businesses under the same ownership.
Bond coverage must be adjusted annually, prior to license renewal if necessary to reflect the gross amount of business transacted during the 12-month period. The surety on the bond must be a surety company authorized to do business in Indiana.
Scales used to weigh livestock are subject to inspection by the Weights and Measures Division of the Indiana State Department of Health (ISDH).
Fraudulent, deceptive or dishonest practices in weighing livestock constitute grounds for the license revocation and other penalties, under Indiana law.
Livestock dealers are required to keep records of their transactions. Records must fully disclose the true ownership of the business. The dealer's records shall fully and correctly disclose all purchases, sales, or transfers involving livestock, including:
Making (or causing to be made) a false entry or statement in any report or record is illegal. As is willfully removing, destroying, changing or concealing the true identity or identification of any animal required by state or federal law to be identified.
All license-holders (and their agents/employees) must, upon request during ordinary business hours, permit authorized representatives of the BOAH to enter the licensee's place of business to examine records, accounts, and memoranda pertinent to livestock transactions made in connection with the business. The inspector may make copies of those records, memoranda or accounts, and inspect the property and facilities used in connection with the business. Required records must be kept open for inspection by BOAH for two years.
SALES AT A MARKET FACILITY
Whenever livestock is weighed for purchase or sale at a market facility, a scale ticket must be issued by the agent performing the weighing service. The scale ticket must clearly indicate the following:
A scale ticket cannot show a change in weight, unless the animal is reweighed. If an error (other than weight) is made, a revised scale ticket showing the correction and reason for the change must be attached to the original, incorrect ticket. These corrections are permitted only when the buyer's name is not needed on the scale ticket, and the dealer keeps buyer records. 345 IAC 7-3.5-11.
A person consigning livestock to a dealer for sale at auction, at the time of consignment or delivery, must stipulate the specific purpose for which the animal is to be offered for sale. However, when the consignor does not declare a purpose, the dealer will make the decision and sell the animal in the best interests of the consignor.
Livestock sales on consignment must be sold openly, to achieve the highest available bid in the best interest of the consignor. Consignments must also be sold on their own merit. The sale of one cannot be conditional on the sale of another, different consignment. However, the sale of livestock in graded lots belonging to different owners is not prohibited, if the consignors agree.
When an animal is sold for immediate slaughter, the auctioneer (or other selling agent) must clearly announce the animal is for slaughter-only. When sold, the dealer must clearly mark "for slaughter only" on the bill of sale given to the buyer and maintained in the dealer's records. Diverting a slaughter-only animal to any other purpose is illegal. An authorized representative of the State Veterinarian has the right to identify any domestic animal to be sold for "immediate slaughter".
Promptly following the purchase or sale of livestock at public auction, the dealer shall provide the seller/consignor and buyer an itemized written account of the purchase/sale, including:
Each market facility dealer must provide:
Except for purposes of immediate slaughter, all domestic animals consigned to a dealer must be inspected prior to public sale or auction. Removing a domestic animal from the premises of a public market before it has passed inspection is illegal. Dealers with custody of livestock subject to inspection must make the animals readily available to inspecting agencies, while preserving the consignments' identities until inspection is complete. BOAH employees and others authorized by the State Veterinarian have the right to inspect any livestock at market facilities to determine ownership and point of origin, evaluate health, and pursue the objectives of BOAH.
When domestic animals are tested, vaccinated, or otherwise professionally treated by a veterinarian at a market facility as part of their sale/offering for sale, the market operator must furnish the veterinarian:
Any expense or cost for professional services delivered at a market, along with other lawful charges, may be withheld or deducted from the consignor's sale proceeds. The marketing agency must clearly show the amount withheld/deducted and the reason.
Licensed market operators must file with the State Veterinarian a complete and accurate report of all cattle identified (tagged) at his/her place of business in connection with the market-cattle test program currently being conducted by state-federal regulatory agencies. Reports shall be forwarded to the State Veterinarian.
Unless specifically stated otherwise, the dealer is responsible for sending all required completed forms to the Office of the State Veterinarian within 10 days following the date of the event requiring the form. 345 IAC 7-3.5-14.
LIVESTOCK MARKET FACILITIES
All licensed market operators shall provide and maintain adequate and suitable facilities for loading, unloading, holding, identifying, segregating and otherwise handling livestock. Minimum requirements for facilities:
NONAMBULATORY LIVESTOCK HANDLING, CARE
Minimum standards of care for animals in markets:
Market facilities in Indiana may not accept delivery of nonambulatory (or "downer") livestock. Nonambulatory animals may be unloaded for euthanization at the market. Written policies, procedures, and equipment must be in place to handle animals that become nonambulatory after delivery to the facility. Animals that become nonambulatory after arrival must be disposed of within 24 hours.
On Farm: When livestock becomes nonambulatory on the farm or en route to a market facility, BOAH recommends the animal be treated or disposed of by the owner as follows:
SALE OF DISEASED ANIMALS
The State Veterinarian may restrict the sale of any diseased animal to prevent the spread of disease, including restricting sale to a recognized slaughter establishment.
Quarantined animals may be sold/offered for sale at a market only for immediate slaughter, except by special permission of the State Veterinarian. These animals must be individually identified and cannot be removed from the sale premises unless accompanied by a written release on the proper BOAH form. The release form must be attached to the buyer's invoice or bill of sale and accompany the animal(s) to slaughter. 345 IAC 7-3.5-17.
A market facility must not allow sewage, drainage or waste water to collect to create an unnecessary public nuisance. Trash, bedding, manure or other waste solids may not collect on the premises. Weeds and accumulated junk which could harbor rodents must be eliminated. 345 IAC 7-3.5-18.
The market facility and its surroundings (including yards, pens, alleyways, chutes and all other equipment used for receiving, yarding, handling and otherwise selling livestock) shall be maintained in a clean and sanitary manner at all times.
Licensed market operators must provide on the premises (or have immediate access to) power spray or other disinfecting equipment. The equipment must be maintained in serviceable condition at all times. The State Veterinarian may require a market to be cleaned and disinfected to prevent the spread of disease. A market facility may be placed under temporary quarantine, if necessary, until the process is completed as directed.
All trucks, trailers or other conveyances used for transporting livestock shall be maintained in a clean and sanitary condition at all times. The State Veterinarian (or an authorized agent) may order any vehicle to be thoroughly cleaned and disinfected by the operator to prevent the spread of disease.
Disinfecting agents and methods shall meet the approval of the State Veterinarian. 345 IAC 7-3.5-19.
To establish a Brucellosis-testing service laboratory at a market, a written application must be submitted to BOAH for approval. The State Veterinarian (or authorized agent) will inspect the laboratory. The laboratory will be approved, if the facilities and procedures meet minimum state requirements and generally accepted laboratory procedures. Contact BOAH for Brucellosis laboratory requirements.
Brucellosis tests conducted at approved laboratories will be recognized as official for purposes of selling domestic animals through public Indiana markets for interstate sale or movement, if they are performed using procedures and facilities recognized by the State Veterinarian.
Failure to comply with the livestock dealer licensing law may result in criminal charges, fines, injunctions and the revocation or suspension of a license.
FOR MORE INFORMATION
For more information about livestock dealer licensing consult the Livestock Dealer Act IC 15-2.1-14, and the dealer licensing rule 345 IAC 7-3.5.
For information about a United States Department of Agriculture Packers and Stockyards bond contact USDA-GIPSA.
To download a livestock dealer licensing form click here.
For more information about Board of Animal Health licenses contact the licensing division: