USDA Settles a Packers and Stockyards Case against Clinton Stockyards Inc.

WASHINGTON, Jan. 4. 2022 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Clinton Stockyards Inc. (Clinton) of Fox, Ark., on Sept. 24, 2021, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Clinton waived its right to a hearing and paid a penalty of $2,500.

An investigation by USDA’s Agricultural Marketing Service  revealed that Clinton failed to maintain its custodial account, resulting in custodial shortages of $31,653 on Dec. 21, 2020, and $12,514 on Mar. 15, 2021.

A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Operating with custodial account shortages is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,270 per violation against any person after notice and opportunity for hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and enter 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 Kraig Roesch, Packers and Stockyards Division, at (202) 720-7051, or by email at kraig.roesch@usda.gov.

#

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter

@USDA_AMS. You can also read about us on the USDA blog.

USDA is an equal opportunity provider, employer, and lender