USDA Settles a Case with Norwood Producers Auction Yards Inc. Resulting in a $2,750 Penalty

Wednesday, May 9, 2018 - 10:30am
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Release No.: 049-18

WASHINGTON, May 9, 2018 – On Jan. 18, 2018, Norwood Producers Auction Yards Inc. (Norwood), Norwood, Mo., waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA), and paid a penalty of $2,750 for alleged violations of the Packers and Stockyards (P&S) Act.

The USDA Agricultural Marketing Service’s (AMS) investigation of Norwood revealed custodial account shortages on June 1, 2017, of $26,988.58 and June 29, 2017, of $28,720.68.  A custodial account is a trust account that is a separate bank account designated for shippers’ proceeds.  Operating with custodial account shortages is a violation of Section 312(a) of the P&S Act.

The P&S Act (7 U.S.C. § 181, et seq.) authorizes the Secretary of Agriculture to assess civil penalties of not more than $11,000 per count against any person who violates the statute(s) cited above after notice and opportunity for hearing on the record.

USDA enforcement rules provide a mechanism to quickly resolve violations of the P&S Act.  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 Packers and Stockyards Division, contact Michael Durando, Associate Deputy Administrator, FTPP, at (202) 720-0219, or by email at

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