USDA settles three Packers and Stockyards cases
Joe Dax Tyler of Muldrow, Okla, issues nine nonsufficient funds checks for livestock payments.
Image by Julia Nigh from Pixabay
The U.S. Department of Agriculture entered into a stipulation agreement with Andrew Hoehner, doing business as Hoener Livestock, of Graff, Mo., on June 16, 2024, for alleged violations of the Packers and Stockyards Act. Under the terms of the stipulation agreement, Hoehner waived his right to a hearing and paid a civil penalty of $3,750.
An investigation by USDA’s Agricultural Marketing Service found Hoehner failed to pay when due for livestock on 11 purchases made between June and August 2022. Payments for 1,132 head of livestock valued at $199,247 were made six to 22 days late.
The P&S 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 violates the P&S Act.
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 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 202-720-5877 or Amy.R.Blechinger@usda.gov.
The U.S. Department of Agriculture entered into a stipulation agreement with Joe Dax Tyler of Muldrow, Okla., on June 11, 2024, for alleged violations of the Packers and Stockyards Act. Under the terms of the stipulation agreement, Tyler waived his right to a hearing and paid a penalty of $3,450.
An investigation by USDA’s Agricultural Marketing Service revealed that Tyler failed to pay timely for his livestock purchases at three livestock markets. Tyler issued nine nonsufficient funds checks for livestock payments. Tyler’s payments were seven to 21 days late.
The U.S. Department of Agriculture reached a consent decision with Indiana Halal LLC, Kendallville, Ind., and its owner, Aref Alhag, on June 13, 2024, for violations of the Packers and Stockyards Act.
An investigation by USDA’s Agricultural Marketing Service revealed that between Oct. 12–30, 2020, Indiana Halal LLC failed to pay timely for the full purchase price of 839 head of livestock totaling $168,815.94. Additionally, Indiana Halal LLC failed to pay for $60,335.67 in livestock purchases and issued two nonsufficient funds checks for a total of $20,000.
Under the decision, Indiana Halal LLC and Alhag agreed to cease failing to pay, failing to pay timely, and issuing payments for livestock purchases with insufficient funds in their bank account. Alhag agreed to forego owning and operating a packer for five years. After three years, if Alhag has paid in full the $60,335.67 owed for livestock, he may petition AMS to resume activities as an owner/operator of a packer. Alhag also paid a $1,500 civil penalty.
The P&S 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 and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act.
Source: USDA's AMS
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