Why Escrow?
“I’m building a website as a Sales tool….. How do I guarantee the money and buyers motivations while protecting the financial interests of my seller?”
Using a licensed and regulated escrow service when selling livestock online can help to provide a secure and trustworthy transaction process for both the buyer and seller. Here are some of the benefits of using an escrow service:
Reduced risk of fraud: An escrow service can help to reduce the risk of fraud by acting as a neutral third party to hold the funds until the terms of the agreement are met. This helps to ensure that both parties fulfill their obligations before the funds are released.
Secure payment processing: Escrow services use secure payment processing methods to ensure that funds are transferred safely and securely between the buyer and seller.
Improved trust between parties: Using an escrow service can help to improve trust between the buyer and seller by providing a third party that both parties can rely on to facilitate the transaction.
Clear terms and conditions: An escrow service can help to ensure that the terms and conditions of the agreement are clearly defined and understood by both parties. This can help to prevent disputes and misunderstandings.
Dispute resolution: If a dispute arises during the transaction process, the escrow service can act as a neutral third party to help resolve the dispute and ensure that both parties are satisfied with the outcome.
Overall, using an escrow service can help to provide a secure and trustworthy transaction process for selling livestock online, which can help to reduce the risk of fraud and improve trust between parties.
Why Escrow for Buyers?
Putting your money up in advance gives you the opportunity to inspect your purchase, making sure the product meets contract specifications.
Your money is protected under Montana State Escrow Laws.
Guarantee’s seller performance.
Why Escrow for Sellers?
Payments are guaranteed for products upon a satisfactory delivery.
Buyers must provide payment up front, eliminating seller’s risk of fraudulent purchases.
Your money is protected under Montana State Escrow Laws.
Estimates of the amount of money lost due to fraud and misrepresentation of agricultural livestock and commodities vary widely depending on the sources and methods used to calculate the losses. However, it is widely acknowledged that fraud and misrepresentation can have significant financial impacts on individuals, businesses, and the industry as a whole.
In the United States, the Federal Bureau of Investigation (FBI) has reported losses of over $1 billion annually due to agricultural theft and related crimes, which includes theft of livestock, crops, and equipment. It is difficult to determine how much of these losses are specifically related to fraud and misrepresentation, but it is clear that they can contribute significantly to the overall losses.
Additionally, a study published by the Organization for Economic Cooperation and Development (OECD) estimated that the total value of global food fraud is between $30 and $40 billion annually. This includes fraud in the supply chain, such as misrepresentation of the origin or quality of the food, as well as fraud in sales and distribution.
While it is difficult to determine an exact estimate of the amount of money lost specifically due to fraud and misrepresentation of agricultural livestock and commodities, it is clear that it can have significant financial impacts on the industry and individuals involved. Using reputable and trustworthy partners, such as licensed and regulated escrow companies, can help to mitigate these risks and provide a secure and trustworthy transaction process.
Easterday Farms
After filing for bankruptcy, Easterday Farms owes top creditors over $236 million
High Plains Livestock
High Plains Livestock stole over $700,000 from cattlemen by altering scale tickets
Kane Beef
Complaints show Kane Beef owing $35 million to unpaid livestock sellers.
Brookefield Cattle Company
Stole $180,000 from a FFA chapter along with over $6 million from producers across the country
Eastern Livestock Company
After the dust settled, Eastern Livestock owed cattlemen over $130 million
R&W Farms
Failed to pay sellers over $1.4 million across 21 different transactions
Plainville Livestock Commission
Plainville Livestock swindled over $14 million from producers with a check kiting scheme
Wagener Dairy Cattle
Owed sellers over $224,000 and failed to pay when due