Public Affairs
WASHINGTON, Nov. 9, 2020 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Olague Farms Meat Packing Inc. (Olague) of Harvard, Ill., on October 2, 2020, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Olague waived its rights to a hearing and paid a civil penalty of $2,250.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed Olague failed to pay when due for 39 transactions from January 2019 through January 2020 and failed to maintain adequate records, as required by the Act. In addition, Olague issued seven insufficient funds checks, totaling $126,840 that were subsequently paid.
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 timely pay for livestock purchases and issuing payment from accounts with insufficient funds is a violation of the P&S Act.
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. 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 Jeana Harbison, Packers and Stockyards Division, at (202) 720-7051, or by email at Jeana.M.Harbison@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.
USDA is an equal opportunity provider, employer, and lender