Release No.: 136-19
WASHINGTON, Dec. 26, 2019 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Nov. 15, 2019, the U.S. Department of Agriculture (USDA) issued a complaint against Cecil W. Hatcher (Hatcher) and H & H Cattle Services L.L.C. (H & H) of Virginia, for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service revealed that from November to December 2016, Hatcher operated H & H as a dealer buying and selling livestock for its own account. Hatcher and H & H failed to pay for 158 head of livestock in 26 livestock purchases totaling $82,761. Proceeds from the bond carried by H & H paid for $58,784 of these purchases but not within the period required under the P&S Act. On four occasions, Hatcher and H & H issued checks to sellers for purchases totaling $9,067 that were returned unpaid because Hatcher and H & H did not have and maintain sufficient funds available in the account to pay the checks when presented. In each purchase, Hatcher and H & H also charged sellers a handling fee of $10.00 per head in violation of the P&S Act.
Section 409 of the P&S Act requires that when purchasing livestock, livestock dealers must issue payment to the seller no later than the close of the next business day after purchase. Failure to pay for livestock purchases, or pay in accordance with section 409, is an unfair practice and a violation of section 312(a) of the P&S Act. Hatcher and H & H will have 20 calendar days following receipt of the complaint to respond directly to the USDA Administrative Law Judge or be found in violation and subject to penalty.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $11,000 per violation against any person after the notice and opportunity for hearing on the record. If the allegations are admitted or proven in an oral hearing, Hatcher and H & H may be ordered to cease and desist from violating the P&S Act and assessed a civil penalty.
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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