Public Affairs
WASHINGTON, Oct. 23, 2024 – The U.S. Department of Agriculture (USDA) issued a complaint against Bert E. Smith IV, doing business as Rowdy Livestock LLC., on Sept. 25, 2024, for alleged violations of the Packers and Stockyard (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service revealed that between Jan. 7, 2021, and July 29, 2022, Smith failed to pay timely for 1,071 head of livestock totaling $957,009 and issued checks totaling $144,230 which were returned unpaid for insufficient funds. As of the complaint filing date, Smith still owes for these livestock purchases.
In addition, the investigation revealed that between July 29, 2020, and Feb 8, 2021, Smith engaged in the business of a livestock dealer without maintaining an adequate bond or bond equivalent.
The P&S Act requires subject entities to issue 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.
Livestock dealers must have a reasonable bond that applies to their business activities to ensure that they fulfill their financial obligations. Any dealer required to have bond coverage must only conduct operations if a bond or bond equivalent is on file that complies with regulations. Operating without a proper bond or bond equivalent is considered an unfair trade practice and a violation of the P&S Act.
The P&S Act authorizes the Secretary of Agriculture to initiate actions to seek various sanctions, including orders to cease and desist from continuing violations, suspensions of registrations where applicable, and other remedies as authorized and appropriate under the 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 Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or by email at Amy.R.Blechinger@usda.gov.
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