The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Lewiston Livestock Market Inc. of Lewiston, Idaho (Lewiston), on July 28, 2022, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Lewiston waived its rights to a hearing and paid a civil penalty of $4,000.
An investigation by USDA’s Agricultural Marketing Service (AMS) found that Lewiston failed to maintain its custodial account, resulting in a custodial shortage of $165,298 on Dec. 31, 2021, and $70,795 on Jan. 31, 2022. The custodial shortages resulted from the failure of Lewiston to timely reimburse the custodial account.
A custodial account is a trust account designated for shippers’ proceeds from the sale of consigned livestock maintained for sellers. Failure to reimburse the custodial account timely is a violation of the Packers & Stockyards Act and regulations.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,616 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.
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 P&S Act, contact Kraig Roesch, Packers and Stockyards Division, at (303) 375-4291 or by email at kraig.roesch@usda.gov.
Original source can be found here.
