USDA settles five Packers and Stockyards cases
USDA enters two stipulation agreements due to alleged P&S Act violations.
McLamb’s Abattoir & Meats Inc.
The U.S. Department of Agriculture entered into a stipulation agreement with McLamb’s Abattoir & Meats Inc. of Benson, N.C., on March 26, 2024, for alleged violation of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, McLamb’s Abattoir & Meats Inc. waived its rights to a hearing and paid a civil penalty of $1,000.
An investigation by USDA’s Agricultural Marketing Service revealed McLamb’s Abattoir & Meats Inc. last tested its monorail scale on April 4, 2022, but continued to weigh carcasses on it without the required periodic tests.
The P&S Act requires subject entities to test monorail 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.
The P&S Act authorizes the secretary of agriculture to assess civil penalties, up to $33,896 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 by email at Amy.R.Blechinger@usda.gov.
The U.S. Department of Agriculture issued a complaint against Duvall Livestock Market LP of Greensboro, Ga., on April 19, 2024, for alleged violations of the Packers and Stockyards Act.
An investigation by USDA’s Agricultural Marketing Service revealed that Duvall Livestock Market LP failed to maintain its custodial account properly, resulting in custodial shortages of $20,561 on July 31, 2020, and $28,321 on Sept. 30, 2020.
A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Operating with custodial account shortages is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.
If the allegations are admitted or proven in an oral hearing, Duvall Livestock Market LP may be ordered to cease and desist from continuing violations of the P&S Act and assessed a civil penalty.
The U.S. Department of Agriculture issued a Decision and Order Without Hearing by Reason of Default against Michael “Brent” Wagner of Goldthwaite, Texas, on Feb. 28, 2024, for violations of the Packers and Stockyards Act.
An investigation by USDA’s Agricultural Marketing Service revealed that from April through September 2020, Wagner engaged in the business of a market agency, buying livestock on commission without maintaining an adequate bond or bond equivalent. He purchased 581 head of livestock in 21 transactions at posted livestock markets, receiving $3,039 in buying commissions.
Under the Default Decision and Order, Wagner was ordered to cease and desist from operating as a livestock market agency without maintaining an adequate bond or bond equivalent. Wagner was also assessed a $6,500 civil penalty to be paid immediately.
Every livestock market agency and dealer must file a registration and execute and maintain a bond applicable to the activity or activities in which the entity engages. Operating without an adequate bond or bond equivalent is a violation of the P&S Act.
The U.S. Department of Agriculture entered into a stipulation agreement with Simmons Foods Inc. of Siloam, Ark., on April 3, 2024, for alleged violation of the Packers and Stockyards Act. Under the terms of the stipulation agreement, Simmons Foods Inc. waived its rights to a hearing and paid a civil penalty of $1,000.
An investigation by USDA’s Agricultural Marketing Service revealed Simmons Foods Inc. last tested its vehicle scale on Nov. 4, 2022, but continued to weigh poultry on it without the required periodic tests until April 1, 2024.
The P&S Act requires subject entities to test vehicle 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.
The U.S. Department of Agriculture issued a decision and order against Scott Alan Sanders, doing business as S.A.S. Dairy, doing business as Sanders Family Cattle Sales and Cathryn R. Sanders, doing business as Fire Lake Jerseys of California, on April 23, 2024, for alleged violations of the Packers and Stockyards Act.
An investigation by USDA’s Agricultural Marketing Service revealed that Scott Sanders, between May and July 2019, failed to pay timely for 116 head of livestock purchased in the amount of $73,546. Payments were up to six days late. Scott Sanders also was found in violation for failing to pay 98 head of livestock in the amount of $69,051. Cathryn Sanders, between May and July 2019, failed to pay timely for 202 head of livestock purchased in the amount of $212,542. Payments were up to 34 days late. Cathryn Sanders also failed to pay for 244 head of livestock purchased in the amount of $210,752.
Under the decision, Scott Alan and Cathryn R. Sanders agreed to conduct business and maintain records under the business names for which they are registered and bonded and pay for their livestock purchases in a timely manner. In addition, both Sanders were ordered to cease the practice of post-dating payment checks and cease demanding markets to delay payments. The Sanders were also assessed an $8,000 civil penalty to be paid within 30 days.
Source: USDA's AMS
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