Public Affairs
WASHINGTON, Aug. 28, 2020 – As part of its commitment to ensuring fair and competitive markets for the livestock, meat and poultry industries, on Aug. 19, 2020, the U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Halal Transaction of USA, LLC (Halal), of Kinsman, IL, for alleged violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Halal waived its rights to a hearing and paid a penalty of $1,275.
An investigation by USDA’s Agricultural Marketing Service (AMS) revealed that between Oct. 2019 and January 2020, Halal failed to pay on time for twelve livestock transactions totaling $214,095. Halal’s livestock payments ranged from one to fourteen days late.
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 an unfair trade practice and a violation of the P&S Act.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $28,061 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 entering 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 Stuart Frank, Packers and Stockyards Division, at (515) 323-2586, or by email at stuart.frank@usda.gov.
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