WASHINGTON, Sept. 17, 2025 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Crossville Stockyard LLC, of Crossville, Tenn., on July 10, 2025, resolving alleged violations of the Packers and Stockyards (P&S) Act. Under this agreement, Crossville Stockyard waived its right to a hearing and agreed to pay a civil penalty of $9,000.
A USDA Agricultural Marketing Service investigation revealed that Crossville Stockyard had custodial account shortages of $155,735 on June 28, 2024, and $194,632 on July 28, 2024, due to misusing its custodial account by creating false and misleading records in connection with its livestock selling activities and failing to reimburse the custodial account in a timely manner.
A custodial account is a trust account required for handling proceeds from the sale of livestock. The market agency maintains this account to benefit livestock sellers. Failing to reimburse the custodial account on time and creating false and misleading records are considered unfair and deceptive practices and are violations of the P&S Act and its regulations.
The Secretary of Agriculture has authority under the P&S Act to take action against violators, including issuing orders to cease and desist, suspending registrations, and applying other appropriate remedies as authorized by the Act. USDA may also offer alleged violators the option to waive their right to a hearing and enter into a stipulation agreement to resolve the suspected violations quickly.
For information about the P&S Act, contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or Amy.R.Blechinger@usda.gov.
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