USDA Settles a Packers and Stockyards Case against Adam Smith Livestock

WASHINGTON, May 12, 2021 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Adam T. Smith dba Adam Smith Livestock (Smith) of Spring Mills, Pa., on April 7, 2021, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Smith waived its rights to a hearing and paid a civil penalty of $875.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed Smith failed to pay when due for 15 transactions from July through August 2020.

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 is a violation of the P&S Act.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,270 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.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

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