Public Affairs
WASHINGTON, July 30, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on May 19, 2020, the U.S. Department of Agriculture (USDA) issued a Decision and Order Without Hearing by Reason of Default against Scott Deters, doing business as Scott Deters Livestock Company (Scott Deters) of Corning, Kan., for violations of the Packers and Stockyards (P&S) Act. The Decision and Order became final and effective as of June 22, 2020.
An investigation by USDA’s Agricultural Marketing Service revealed that from March 23, 2015, through March 29, 2018, Deters failed to pay timely for 1,233 livestock purchases totaling $1,162,595. The investigation also revealed that from Feb. 20, 2018, through April 3, 2018, Deters purchased 478 head of livestock for a total purchase price of $349,380 without obtaining the necessary bond or bond equivalent.
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. The P&S Act also requires that every market agency, packer, and dealer must execute and maintain a bond applicable to the activity or activities in which the entity engages. Operating without an adequate bond or bond equivalent is a violation of the P&S Act.
Under the Default Decision and Order, Deters was assessed a civil penalty of $17,600. Deters must also cease and desist from engaging in operations subject to the P&S Act without paying for such purchases within the time allotted by the Act and was suspended as a registrant from all livestock dealer operations for 30 days and thereafter until he is adequately bonded.
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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