The U.S. Department of Agriculture (USDA) has entered into a stipulation agreement with Salem Livestock Inc. and Windsor Livestock Auction Co. Inc. for alleged violations of the Packers and Stockyards (P&S) Act.
In breach of the Act, Salem's custodial accounts lacked $1,187,353 and $964,800, respectively, as of the 31st of May and the 30th of June in 2021. The market did not make a payment to the custodial account by the seventh day after the transaction for purchases and uncollected receivables, which resulted in a deficit in the custodial account. In addition to this, it was discovered that Salem had inappropriately used custodial funds by using the money to make payments on its line of credit as well as pay bank fees.
In addition to failing to conduct the mandatory annual test on the scale on December 21, 2021, Windsor proceeded to use an untested scale to measure the weight of animals for the entirety of the year 2022. According to the P&S Act, commercial livestock scales have to go through testing at least twice a year. The first round of testing must take place between January 1 and June 30, and the second round must take place between July 1 and December 31. There must be at least 120 days in between each round of testing.
Under the P&S Act, the Secretary of Agriculture has the authority to levy civil fines of up to $33,896 per infraction. This authority is contingent upon the provision of prior notice and the opportunity for a hearing on the record. The United States Department of Agriculture (USDA) may give respondents the option of waiving their right to a hearing in exchange for agreeing to enter into a stipulation agreement in order to speed up the process of resolving claims of noncompliance.
The objective of the United States Department of Agriculture is to increase agricultural production so that it not only better nourishes Americans but also helps feed people in other parts of the world; to generate economic possibilities via innovation, so supporting rural America in thriving; and to protect and enhance the natural resources of the United States.
