The U.S. Department of Agriculture (USDA) entered into a consent decision with Low Country Livestock Exchange LLC (Low Country), Blackstock, S.C., for alleged violations of the Packers and Stockyards (P&S) Act.

The USDA Agricultural Marketing Service (AMS) conducted an investigation that revealed shortages in Low Country’s custodial account of $84,104 on July 29, 2016, and $83,539 on September 16, 2016.  A custodial account is a trust account that is a separate bank account designated for shippers’ proceeds.  Operating with custodial account shortages is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.

Low Country agreed on Aug. 2, 2018, to pay a civil penalty of $2,000 and entered into a suspension period of seven days, and continuing until the custodial account shortage and solvency is corrected.  Low Country will remain under close monitoring by AMS during that time.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties of not more than $28,061 per count against any person who violates the law, after notice and opportunity for hearing on the record.

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.