WASHINGTON, Sept. 17, 2025 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Newkirk Farmers & Ranchers Livestock Auction LLC, Jeff Schieber and Shannon Schieber on June 27, 2025, resolving an alleged violation of the Packers and Stockyards (P&S) Act. Under this agreement, Newkirk Farmers & Ranchers Livestock Auction and the Schiebers, waived their rights to a hearing and agreed to pay a civil penalty of $2,500.
A USDA Agricultural Marketing Service investigation revealed that Newkirk Farmers & Ranchers Livestock Auction had a custodial account shortage of $90,780 on Sept. 26, 2024, and $16,236 on Dec. 31, 2024, due to its failure to timely reimburse the custodial account, as required by the P&S Act.
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 the market agency/owner purchases by the close of the next business day, and for uncollected receivables by the close of the seventh day, following the livestock sale.
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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