Release No.: 027-20
WASHINGTON, Jan. 28, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Dec. 9, 2019, the U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Jerry Stokes, doing business as Jerry Stokes Cattle (Stokes), of Garrison, Texas, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Stokes waived his rights to a hearing, and paid a penalty of $5,000.
An investigation by USDA’s Agricultural Marketing Service revealed that Stokes failed to timely pay for livestock purchases totaling $836,237 from April 8, 2015, through May 27, 2015.
The P&S Act requires subject entities to issue the 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.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $11,000 per violation against any person after the notice and opportunity for hearing on the record. 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, Packers and Stockyards Division, at (515) 323-2586, or by email at stuart.frank@usda.gov.
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