The U.S. Department of Agriculture (USDA) reached a consent decision with Robert Lenz, doing business as Lenz Livestock (Lenz) of Carroll, Iowa, on Sept. 13, 2022, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that Lenz failed to pay timely for 118 head of livestock purchased for $98,368 between Jan. 19, 2022, and Feb. 1, 2022. Lenz’s payments were between 26 and 93 days late.
In addition, on Jan. 19, 2022, Lenz issued a check in payment for 30 head of livestock for $30,313, which was returned unpaid by the bank. The financial institution returned the check because Lenz did not have sufficient funds in the account.
Under the consent decision, Lenz agreed to cease and desist from failing to pay, when due, the full purchase price of livestock and issuing insufficient checks for his livestock purchases. Lenz is suspended as a registrant under the Act for two years. However, Lenz is permitted to engage in salaried employment by another registrant or packer properly and adequately bonded.
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 deliver livestock for which payment has been accepted are unfair trade practices and are violations of the P&S Act.
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 Kraig Roesch, Packers and Stockyards Division, at (303) 375-4291 or by email at kraig.roesch@usda.gov.
Original source can be found here.
