The U.S. Department of Agriculture entered into a stipulation agreement with Texas-based Mid-Tex Livestock Auction LLC on Nov. 7, 2023, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation, Mid-Tex waived its rights to a hearing and paid a penalty of $3,750.
An investigation by USDA’s Agricultural Marketing Service revealed that Mid-Tex had custodial account shortages on July 12 and Aug. 15, 2022, of $168,086 and $144,201, respectively. The custodial shortages were partly due to the market failing to reimburse the custodial account by the close of the seventh day following the sale.