USDA Settles a Case with Justin Thompson Resulting in a $1,925 Penalty

Date: 
Tuesday, November 20, 2018 - 10:00am
Contact Info: 

Release No.: 166-18

WASHINGTON, Nov. 20, 2018 – On Nov. 14, 2018, Justin Thompson, doing business as Justin Thompson Farms, Hineston, La., waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA) and paid a penalty of $1,925 for alleged violations of the Packers and Stockyards (P&S) Act.

The Agricultural Marketing Service’s (AMS) investigation revealed Justin Thompson Farms failed to timely pay for its livestock purchases, totaling $1,773,788, from August 1, 2017, through March 25, 2018.  Justin Thompson Farms also issued insufficient funds checks, totaling $83,382 for livestock purchased.

Payment for all livestock is due before the close of the business day following the purchase and transfer of possession of the livestock.  Failure to pay when due and issuing insufficient funds checks for livestock are violations 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 entering 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, Director, Packers and Stockyards Division, Fair Trade Practices Program at (515) 323-2586, or by email at Stuart.Frank@usda.gov.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.

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