WASHINGTON, May 1, 2020 – The U.S. Department of Agriculture (USDA) reached a consent decision with H & H Cattle Services L.L.C. (H & H) and owner, Cecil W. Hatcher (Hatcher), Scottsburg, Va., for alleged violations of the Packers and Stockyards (P&S) Act.
An investigation by USDA’s Agricultural Marketing Service revealed that from November 2016 to December 2016, Hatcher operated H & H as a dealer buying and selling livestock for its own account. Hatcher and H & H failed to pay for 158 head of livestock in 26 livestock purchases totaling $82,761. Proceeds from the bond carried by H & H paid for $58,784 of these purchases but not within the period required under the P&S Act. On four occasions, Hatcher and H & H issued checks to sellers for purchases totaling $9,067 that were returned unpaid. In each purchase, Hatcher and H & H also charged sellers a handling fee of $10 per head in violation of the P&S Act.
H & H and Hatcher agreed to suspend operations subject to the P&S Act for three years. Under the terms of the consent decision, in six months, or anytime after, H & H and Hatcher may request a lifting of the remaining portion of the suspension if two conditions are met. First, H & H and Hatcher must pay the unpaid sellers or have agreed to payment plans with them. Second, H & H and Hatcher must provide the USDA’s Agricultural Marketing Service with an acceptable dealer bond.
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.
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