Release No.: 127-19
WASHINGTON, Oct. 1, 2019 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Sept. 18, 2019, the U.S. Department of Agriculture (USDA) issued a complaint against Scott Deters, doing business as Scott Deters Livestock Company (Scott Deters Livestock) of Corning, Kan., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service during May 2018 revealed that Scott Deters Livestock failed to pay timely for 322 head of livestock, totaling $432,446 from March 23, 2015, through July 14, 2015. Also, Scott Deters Livestock failed to pay timely for 911 head of livestock, totaling $730,149 from Jan. 9, 2018, through March 29, 2018.
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 pay timely for livestock purchases is an unfair trade practice and a violation of the P&S Act.
The investigation also revealed from Feb. 20, 2018 through April 3, 2018, Scott Deters Livestock purchased a total of 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 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.
Scott Deters Livestock 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 $28,061 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, Scott Deters Livestock 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 email@example.com
USDA is an equal opportunity provider, employer, and lender