The U.S. Department of Agriculture entered into a stipulation agreement with Wahoo Livestock Sales LLC, Wahoo, Neb., on July 17, 2024, for alleged violations of the Packers and Stockyards Act. Under the terms of the stipulation, Wahoo waived its rights to a hearing and paid a penalty of $3,000.
An investigation by USDA’s Agricultural Marketing Service revealed that Wahoo had custodial account shortages on Jan. 31 and Feb. 29, 2024, of $88,729 and $139,556, respectively. The custodial account shortages were due partly to the market failing to reimburse the custodial account for uncollected receivables by the close of the seventh day following the sale of livestock.
A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Failure to reimburse the custodial account timely is a violation of the Packers and Stockyards Act and regulations.
The P&S Act authorizes the secretary of agriculture to assess civil penalties, up to $34,995 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.
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 Amy Blechinger, Packers and Stockyards Division, at 202-720-7051 or Amy.R.Blechinger@usda.gov.
Source: USDA's AMS
