A livestock auction house in Arkansas recently agreed to pay a $2,500 penalty for violating the Packers and Stockyards (P&S) Act by allowing a shortage to occur in their custodial account, a Jan. 4 U.S. Department of Agriculture (USDA) press release said.
Clinton Stockyards Inc, of Clinton, entered into a stipulation agreement with USDA on Sept. 24, 2021, agreeing to relinquish its right to a hearing and pay the penalty, the release said.
The violations occurred in December 2020 and March 2021 when the company’s custodial account faced shortages of $31,653 and $12,514 respectively, according to an investigation by the USDA Agricultural Marketing Service.
“A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers,” the release said. “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.”
The P&S Act is designed to protect payment and fair practice within “the livestock, meat and poultry industries,” the release said. USDA can access a penalty of up to $29,270 per violation at trial, but provides the option for a stipulation agreement to resolve the issue quickly.
“For further information about the Packers and Stockyards Act, contact Kraig Roesch, Packers and Stockyards Division, at (202) 720-7051, or by email at kraig.roesch@usda.gov,” the release said.
