The U.S. Department of Agriculture entered into a stipulation agreement with Michael Morgan of Oak Grove, Mo., on June 3, 2024, for alleged violations of the Packers and Stockyards Act. Under the terms of the stipulation agreement, Michael Morgan waived their rights to a hearing and paid a civil penalty of $1,875.

An investigation by USDA’s Agricultural Marketing Service revealed Michael Morgan failed to timely pay for 13 livestock purchases, totaling $158,486 from August through October 2023. The payments ranged from two to 13 days late.

The Packers and Stockyards 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 Packers and Stockyards Act.

The Packers and Stockyards Act authorizes the secretary of agriculture to assess civil penalties, up to $33,896 per violation, against any person after 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 resolve alleged violations quickly.

The Packers and Stockyards 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 Amy Blechinger, Packers and Stockyards Division, at 202-720-7051 or Amy.R.Blechinger@usda.gov.

Source: USDA's AMS