USDA Settles a Case Against Winnsboro Livestock Commission Inc., d.b.a. Winnsboro Livestock & Dairy Auction

Thursday, August 1, 2019 - 3:30pm
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Release No.: 102-19

WASHINGTON, Aug. 1, 2019 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on July 2, 2019, the U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Winnsboro Livestock Commission Inc., doing business as Winnsboro Livestock & Dairy Auction (Winnsboro) for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Winnsboro waived its right to a hearing and paid a penalty of $4,000.

An investigation by USDA’s Agricultural Marketing Service on April 1, 2019, revealed Winnsboro failed to maintain its custodial account, resulting in custodial shortages of $105,149 on Nov. 29, 2018, and $131,849 on Jan. 29, 2019. The shortages were due to Winnsboro’s failure to reimburse the custodial account for proceeds receivables by the close of the seventh day following the sale and for owner, officer and employee purchases before the close of the next business day following the sale of livestock.

A custodial account is a trust account designated for shippers’ proceeds from the sale of livestock in trust for sellers. Operating with custodial account shortages is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $28,061 per violation against any person after notice and opportunity for hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to quickly resolve alleged violations.

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

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