Washington - The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) issued an administrative complaint on June 1, 2021, against Daniel Baranzini, Carlos Plascencia and Sonoran Cattle LLC (Sonoran Cattle) of New Mexico, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that during the period on or about Aug. 30, 2019, through Oct. 30, 2020, Sonoran Cattle failed to pay when due as required by the Act in 19 transactions consisting of 941 head of cattle purchased for $645,393, with a net invoice of $642,338. Payments ranged from three to 39 days late. Sonoran Cattle had a written credit agreement in place granting up to 10 days to pay. However, Sonoran Cattle still paid 15 and 23 days late, respectively, to the cattle seller with the written credit agreement.
Also, from Sept. 12, 2019, through July 18, 2020, Sonoran Cattle failed to pay for 42 transactions consisting of 3,990 head of cattle purchased for $2,656,703. After deducting payments of $1,529,648, the remaining unpaid balance is $1,127,055.
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.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,270 per violation against any person after notice and opportunity for hearing on the record. If the allegations are admitted, or proven in an oral hearing, Sonoran Cattle may be ordered to cease and desist from violating the (P&S) Act and assessed a civil penalty.
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 Stuart Frank, Packers and Stockyards Division, at (202) 720-7051, or by email at Stuart.Frank@usda.gov.
Source: U.S. Department of Agriculture Agricultural Marketing Service
