The U.S. Department of Agriculture has settled a pair of Packers and Stockyards Act cases.

• USDA entered into a stipulation agreement with Joplin Regional Stockyards Inc. on June 26, 2023, for alleged violations of the Packers and Stockyards  Act. Under the terms of the stipulation, Joplin waived its rights to a hearing and paid a civil penalty of $7,250. An investigation by USDA’s Agricultural Marketing Service revealed that Joplin operated with shortages on February 28, March 31, and April 30, 2021, of $78,434, $2,058,323, and $1,784,712, respectively. The custodial shortages were due in part to the market failing to reimburse the custodial account by the close of the next business day for market owners, and employees’ purchases and failing to reimburse the custodial account for uncollected receivables by the close of the seventh day following the sale. A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Failure to reimburse and debit the custodial account properly is a violation of the Packers & Stockyards Act and regulations. The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $31,459 per violation against any person after notice and opportunity for a 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 resolve alleged violations quickly.
• USDA issued a Decision and Order Without Hearing by Reason of Admissions against Adam T. Smith, doing business as Adam Smith Livestock of Spring Mills, Pa., on July 7, 2023, for violations of the Packers and Stockyards Act. An AMS investigation revealed that Smith failed to pay when due for 11 transactions totaling $148,483 from June 18, 2020, to Sept. 16, 2021. In addition, Smith issued a check in January 2021 in the amount of $13,444 for 88 head of livestock without sufficient funds in his bank account. Under the decision, Smith agreed to cease failing to pay timely for his livestock purchases and issuing payments for livestock purchases with insufficient funds in his bank account. Smith was suspended as a registered dealer for five years and assessed a $1,000 civil penalty. 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 Dora Malykin, Packers and Stockyards Division, at (202) 720-7051 or by email at dora.malykin@usda.gov.

Source: USDA