WASHINGTON, Mar. 10, 2025 – The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Tahlequah Stockyards Inc., of Tahlequah, Okla., on Feb. 14, 2025, resolving alleged violations of the Packers and Stockyards (P&S) Act. Under this agreement, Tahlequah waived its right to a hearing and agreed to pay a civil penalty of $8,000.
A USDA Agricultural Marketing Service investigation revealed that Tahlequah had custodial account shortages of $891,472 on June 14, 2024, $706,052 on Aug. 31, 2024, and $787,762 on Oct. 22, 2024. The custodial account shortages were due to misuse and failing to reimburse the custodial account for uncollected receivables by the close of the seventh day following the livestock sale.
A custodial account is a trust account required for handling proceeds from the sale of livestock. The market agency maintains this account to benefit livestock sellers. Failing to reimburse the custodial account on time is a violation of the P&S Act and its regulations.
The Secretary of Agriculture has authority under the P&S Act to act against violators, including issuing orders to cease and desist, suspending registrations, and applying other appropriate remedies as authorized by the Act. The USDA may also offer alleged violators the option to waive their right to a hearing and enter into a stipulation agreement to resolve the suspected violations quickly.
For information about the P&S Act, please contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or Amy.R.Blechinger@usda.gov.
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