USDA Issues a Packers and Stockyards Complaint against Hill City Commission LLC

WASHINGTON, Nov. 7, 2024 – The U.S. Department of Agriculture (USDA) issued a complaint against Hill City Commission, LLC and Larry W. Phillips, Hill City, Kan., on Oct. 8, 2024, for alleged violations of the Packers and Stockyards (P&S) Act.

An investigation by the USDA's Agricultural Marketing Service revealed that Hill City Commission, LLC experienced custodial account shortages of $307,145 on May 31, 2022, and $320,300 on July 5, 2022. These shortages were partly due to the market's failure to reimburse the custodial account for uncollected receivables within seven days following the livestock sale. The shortages were also attributed to the misuse of custodial account funds by Hill City Commission, LLC, amounting to $3,642.

A custodial account is a trust account designated for shippers’ proceeds from the sale of 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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