USDA Settles a Packers and Stockyards Case Against Durant Stockyards, LLC

Date
Thursday, October 22, 2020 - 1:30pm
Contact Info
Release No.
170-20

WASHINGTON, Oct. 22, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Sept. 24, 2020, the U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Durant Stockyards, LLC (Durant Stockyards), of Durant, Okla., for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Durant Stockyards waived its right to a hearing and paid a penalty of $3,750.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that Durant Stockyards failed to maintain its custodial account, resulting in custodial shortages of $77,739 on Feb. 2, 2020, $147,613 on March 8, 2020, and $58,702 on April 27, 2020.

A custodial account is an account designated for the shippers’ proceeds from the sale of livestock held 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 resolve alleged violations quickly.

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 Jeana Harbison, Packers and Stockyards Division, at (202) 720-7051, or by email at Jeana.M.Harbison@usda.gov.

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