USDA settles two Packers and Stockyards cases

Violators include Nebraska Beef LTD and Double Creek Livestock LLC.

Courtesy of the USDA

Nebraska Beef LTD

The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Nebraska Beef LTD (Nebraska Beef) of Omaha, Neb., on April 13, 2023, for an alleged violation of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Nebraska Beef waived its rights to a hearing and paid a civil penalty of $13,000.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that Nebraska Beef failed to pay when due for 29 transactions from September 2022 through November 2022.

The P&S Act requires subject entities to issue the full payment for livestock by the close of the first business day following purchase and transfer of possession. Failure to timely pay for livestock purchases is a violation of the P&S Act.

The P&S Act authorizes the secretary of agriculture to assess civil penalties, up to $31,459 per violation, against any person after the notice and opportunity for hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to quickly resolve alleged violations.

The P&S Act is a fair-trade practice and payment-protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.

For further information about the Packers and Stockyards Act, contact Kraig Roesch, Packers and Stockyards Division, at 303-375-4291 or by email at kraig.roesch@usda.gov.

Double Creek Livestock LLC

The USDA entered into a stipulation agreement with Double Creek Livestock LLC (Double Creek) of Demopolis, Ala., on March 30, 2023, for alleged violation of the Packers and Stockyards Act. Under the terms of the stipulation agreement, Double Creek waived its rights to a hearing and paid a civil penalty of $750.

An investigation by USDA’s AMS revealed that Double Creek failed to have its scale tested in 2022. Double Creek tested its scale on June 30, 2021, and continually weighed livestock throughout the 2022 calendar year without the scale being tested.

The P&S Act requires subject entities to test livestock scales used in commerce at least once between Jan. 1 and June 30 and at least once again between July 1 and Dec. 31, with a minimum period of 120 days between tests.

Source: USDA's AMS

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