WASHINGTON, Sept. 30, 2025 – On Aug. 22, 2025, the U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Livingston Stockyard LLC of Livingston, Ala. on Aug. 22, 2025, resolving alleged violations of the Packers and Stockyards (P&S) Act. Under this agreement, Livingston Stockyard LLC waived its right to a hearing and agreed to pay a civil penalty of $3,450.
A USDA Agricultural Marketing Service investigation revealed that Livingston Stockyard LLC had custodial account shortages of $80,013 on March 1, 2024, and $144,032 on April 16, 2024, due to the market agency’s failure to timely reimburse the custodial account as required by the P&S Act, and allowing bank fees to be withdrawn directly from the custodial account by the bank.
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. The custodial account must be reimbursed for purchases by the close of the next business day, and for uncollected receivables by the close of the seventh day following the livestock sale. Markets must also reimburse the custodial account for any bank service fees charged directly by the bank. Failure to timely reimburse a custodial account and custodial account misuse are violations of the P&S Act and regulations.
The Secretary of Agriculture has authority to take action against violators, including issuing orders to cease and desist, suspending registrations, and applying other appropriate remedies as authorized by the P&S Act. USDA may also offer alleged violators the option of waiving their right to a hearing and entering 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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