Release No.: 023-19
WASHINGTON, March 11 2019 – The United States Department of Agriculture, Agricultural Marketing Service (AMS) reached a consent decision with Warren Hudspeth doing business as 56 Cattle Co. (Hudspeth), Pilot Point, Texas, for alleged violations of the Packers and Stockyards (P&S) Act.
AMS conducted an investigation of Hudspeth and found at least 31 transactions between March 4, 2013, and October 18, 2013, during which Hudspeth purchased livestock for resale on a dealer basis. Between April 26, 2013, and May 20, 2013, AMS identified 10 transactions where Hudspeth purchased livestock for the account of others as a market agency buying on a commission basis. The P&S Act requires every livestock dealer and market agency buying livestock on a commission basis in commerce to file a bond with AMS. The purpose of the bond is to provide payment to livestock sellers should Hudspeth fail to pay them. Hudspeth did not have a bond to cover these transactions.
AMS also found that from March 3, 2013, through October 14, 2013, Hudspeth purchased livestock and failed to pay for the livestock within the period of time required by the P&S Act in 17 transactions. The P&S Act requires that livestock dealers and market agencies deliver payment for the full purchase amount to livestock sellers before the close of the next business day following the purchase of livestock and the transfer of possession.
Hudspeth agreed to pay a civil penalty of $3,000. He also provided AMS with a new registration and a livestock dealer and market agency bond in the required amount of $10,000.
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 Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@usda.gov.
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