Public Affairs
WASHINGTON, Sept. 1, 2022 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Circle C Land, Cattle & Equine, LLC, doing business as Cattlemen’s Livestock Exchange (Circle C), and Jeremy Cox (Cox) of Independence, Ark., on June 27, 2022, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Circle C and Cox waived their rights to a hearing and paid a civil penalty of $3,250.
An investigation by USDA’s Agricultural Marketing Service (AMS) found that Circle C and Cox had custodial account shortages on Jan. 14, 2022, and March 4, 2022, of $112,263 and $86,653, respectively. Circle C misused the custodial account by using funds to repay its Line of Credit.
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 is a violation of the Packers & Stockyards Act and regulations.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,616 per violation against any person after notice and opportunity for a 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 resolve alleged violations quickly.
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 Kraig Roesch, Packers and Stockyards Division, at (303) 375-4291 or by email at kraig.roesch@usda.gov.
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