Release No.: 110-18
WASHINGTON, Oct. 3, 2018 – On July 27, 2018, Hatch Auction Inc., doing business as Cow House (Hatch) Fruitland, N.M., waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA) and paid a penalty of $650 for an alleged violation of the Packers and Stockyards (P&S) Act.
The USDA Agricultural Marketing Service’s (AMS) investigation of Hatch revealed the livestock marketing agency failed to test its livestock scale and provide test results between January 1 and June 30, 2017. The P&S Act requires that livestock scales used in commerce be tested at least once between January 1 and June 30 and at least once again between July 1 and December 31 with a minimum period of 120 days between tests. Hatch tested its scale on July 28, 2016, and July 21, 2017. Hatch used its scale continually throughout most of the second half of 2016 and the first half of 2017 without being tested.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties of not more than $28,061 per count against any person who violates the law after notice and opportunity for hearing on the record.
USDA enforcement rules provide a mechanism to quickly resolve violations of the P&S Act. USDA may offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to quickly resolve alleged violations.
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, Fair Trade Practices Program, Packers and Stockyards Division, at (515) 323-2586, or by email at stuart.frank@usda.gov.
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