USDA Settles a Packers and Stockyards Case with Amite Livestock Sales Inc.

WASHINGTON, Aug. 1, 2024 - The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Amite Livestock Sales Inc. on July 8, 2024, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Amite waived its right to a hearing and paid a penalty of $2,500.<_o3a_p>

An investigation by USDA's Agricultural Marketing Service revealed that Amite had custodial account shortages on Dec.1, 2023, and Jan. 12, 2024, of $155,346 and $79,359, respectively. The custodial account shortages were partly due to the market failing to reimburse the custodial account for uncollected receivables by the close of the seventh day following the livestock sale.<_o3a_p>

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 violates the Packers and Stockyards Act and regulations.<_o3a_p>

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.<_o3a_p>

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.<_o3a_p>

For further information about the Packers and Stockyards Act, contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or by email at [email protected].<_o3a_p>

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