Release No.: 071-18
WASHINGTON, June 13, 2018 – The U.S. Department of Agriculture (USDA) issued a complaint to Warren Hudspeth, doing business as 56 Cattle Co., (Hudspeth), Texas, for alleged violations of the Packers and Stockyards (P&S) Act.
A previous order issued, on August 10, 2010, suspended Hudspeth for a five-year period for: 1) issuing checks without having sufficient funds available; 2) failing to pay the full amount of the purchase price for livestock within the time period required by the P&S Act; and 3) failing to pay the full purchase for livestock purchases. An understanding issued as part of the order, allowed Hudspeth to purchase livestock under the bond of a separately registered livestock dealer for two years and six months. After this timeframe, Hudspeth had 10 days to demonstrate to USDA that all unpaid livestock sellers had been paid in full. Hudspeth failed to provide such evidence and continued to operate during the period of suspension without filing an acceptable bond with USDA.
An investigation by USDA’s Agriculture Marketing Service (AMS) revealed from March 4, 2013, through October 18, 2013 that Hudspeth purchased approximately 325 head of livestock, totaling $157,039.79. During the period from April 26, 2013, through May 20, 2013, Hudspeth purchased approximately 216 head of livestock totaling $155,022.89. During both of these periods, Hudspeth purchased livestock on a commission basis without maintaining an adequate bond or bond equivalent. Every market agency, packer, and dealer is required to execute and maintain a bond applicable to the activity or activities in which the entity or person engages. Operating without an adequate bond or bond equivalent violated Sections 201.29 and 201.30 of the P&S regulations.
During the period from March 4, 2013, through October 14, 2013, Hudspeth purchased a total 173 head of livestock for $87,914.93 but failed to pay when due for the full purchase price of the livestock. Payment for all livestock is due before the close of the next business day following the purchase and transfer of possession of the livestock. Failure to pay when due is a violation of Sections 312(a) and 409(a) of the P&S Act and of Section 201.43 of the P&S regulations.
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 Brett Offutt, Fair Trade Practices Program, Packers and Stockyards Division, at (202) 720-7051, or by email at s.brett.offutt@ams.usda.gov.
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