Loy Brothers Livestock Market Inc dba Russell County Stockyards

The US Department of Agriculture entered into a stipulation agreement with Loy Brothers Livestock Market Inc dba Russell County Stockyards, of Russell Springs, Ky., on Feb. 6, 2025, resolving alleged violations of the Packers and Stockyards Act. Under this agreement, Loy Brothers waived its rights to a hearing and agreed to pay a civil penalty of $8,500.

A USDA Agricultural Marketing Service investigation revealed that Loy Brothers had custodial account shortages of $595,862 on May 31 and $389,554 on June 30, 2024. The custodial account shortages were due to custodial account misuse and failing to reimburse the custodial account for uncollected receivables by the close of the seventh day following the livestock sale. The misuse consisted of Loy Brothers’ allowing unlawful withdrawals of bank fees and payments to a line of credit.  

A custodial account is a trust account required for handling proceeds from the sale of livestock. The market agency maintains this account to benefit livestock sellers. Custodial misuse and failing to reimburse the custodial account on time are considered a violation of the P&S Act and its regulations.

The secretary of agriculture has authority under the P&S Act to act against violators, including issuing orders to cease and desist, suspending registrations, and applying other appropriate remedies as authorized by the Act. The USDA may also offer alleged violators the option to waive their right to a hearing and enter into a stipulation agreement to resolve the suspected violations quickly.

Belle Fourche Livestock Market

The USDA entered into a stipulation agreement with Belle Fourche Livestock Market LLC, of Belle Fourche, S.D., on March 17, 2025, resolving alleged violations of the Packers and Stockyards Act. Under this agreement, Belle Fourche Livestock Market waived its right to a hearing and agreed to pay a civil penalty of $2,500.

A USDA Agricultural Marketing Service investigation revealed that Belle Fourche Livestock Market had custodial account shortages of $132,087 on April 30, 2024, and $213,067 on May 31, 2024. The custodial account shortages were partly due to Belle Fourche Livestock Market’s failure to reimburse the account for uncollected receivables by the close of the seventh day following a livestock sale. 

Cattlemen’s Livestock Exchange

The USDA entered into a stipulation agreement with Cattlemen’s Livestock Exchange LLC of Lewisburg, W.V., on April 11, 2025, which resolved an alleged violation of the Packers and Stockyards Act. Under the terms of the stipulation agreement, Cattlemen’s Livestock Exchange waived its right to a hearing and paid a civil penalty of $750.

A USDA Agricultural Marketing Service investigation revealed Cattlemen’s Livestock Exchange last submitted a scale test report on April 30, 2024. Cattlemen’s Livestock Exchange continued weighing livestock to determine sale prices throughout the second half of 2024 without submitting a scale test report to USDA. On March 31, 2025, Cattlemen’s Livestock Exchange took corrective action by getting its livestock scale tested and submitting the report.    

The P&S Act requires subject entities to test livestock scales used in commerce at least once between Jan. 1 and June 30, and at least once again between July 1 and Dec. 31, and submit the scale test reports to USDA.