Public Affairs
WASHINGTON, Sept. 17, 2024 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Interstate Regional Stockyards of Cuba, Mo., on June 26, 2024, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Interstate Regional Stockyards waived its right to a hearing and paid a penalty of $7,500.
An investigation by USDA’s Agricultural Marketing Service revealed that Interstate Regional Stockyards had custodial account shortages of $1,467,546 on July 31, 2023; $1,215,995 on Aug. 31, 2023, and $1,666,172 on Sept. 30, 2023. The custodial account shortages were partly due to the market failing to reimburse the custodial account for uncollected receivables by the close of the seventh day following the livestock sale.
A custodial account is a trust account designated for shippers’ proceeds from selling livestock in trust for sellers. Failure to reimburse the custodial account timely violates the Packers and Stockyards Act and regulations.
The P&S Act authorizes the Secretary of Agriculture to initiate actions to seek various sanctions, including orders to cease and desist from continuing violations, suspensions of registrations where applicable, and other remedies as authorized and appropriate under the Act.
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 Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or by email at Amy.R.Blechinger@usda.gov.
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