WASHINGTON, Feb. 25, 2025 – The U.S. Department of Agriculture (USDA) filed a complaint against Intermountain Packing LLC, and David Adams of Idaho Falls, Idaho, on Dec. 23, 2024, for alleged violations of the Packers and Stockyard (P&S) Act.
An investigation conducted by USDA’s Agricultural Marketing Service (AMS) revealed that between September and December 2023, Intermountain Packing LLC failed to pay for 2,884 head of livestock totaling $3,877,905. Livestock sellers were notified of their right to file packer trust claims for the outstanding amounts owed for their livestock. As of Jan. 31, 2024, an analysis showed that these trust claims totaled at least $2,624,795 and that AMS has not received notification from trust claimants regarding payments made by Intermountain Packing LLC, or David Adams for trust claims. Furthermore, AMS found evidence that trust assets were being used to pay for Intermountain Packing LLC’s loans, payroll, and other administrative costs that do not relate to the preservation or proper administration of the existing trust. The use of trust assets in this manner violates the P&S Act.
In addition, the investigation revealed that as of Jan. 31, 2024, Intermountain Packing LLC, and David Adams's current liabilities exceeded current assets, and they engaged in the business of purchasing livestock as a packer without maintaining an adequate bond or bond equivalent. Packers must have a reasonable bond to secure their payments for livestock. 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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