USDA Issues a Default Decision Against Rodney Dennis, d.b.a. Rd Cattle for Violation of the Packers and Stockyards Act

WASHINGTON, Oct. 15, 2021 -The U.S. Department of Agriculture (USDA) issued a Decision and Order Without Hearing by Reason of Default against Rodney Dennis, doing business as RD Cattle (RD Cattle) of Valley View, Texas, on June 15, 2021, for violation of the Packers and Stockyards (P&S) Act.

An investigation by USDA's Agricultural Marketing Service revealed that RD Cattle failed to pay timely for livestock purchases totaling $361,991 and failed to pay the full purchase price for livestock purchases totaling $105,885, from May 2015 through August 2015. Additionally, RD Cattle issued seven checks for livestock purchases totaling $280,647, without sufficient funds in its bank account to pay for those checks when presented for payment. The investigation further revealed RD Cattle failed to keep and maintain records sufficient to fully and correctly disclose all transactions involved in their business

Under the Default Decision and Order, RD Cattle was ordered to cease and desist from operating without being properly registered and bonded as required by the P&S Act, failing to timely pay the full purchase price of livestock, issuing checks for livestock purchases without sufficient funds in its bank account to pay for those checks, and failing to keep and maintain all accounts, records, and memoranda that fully and accurately disclose all transactions as required by the P&S Act. RD Cattle is prohibited from registering or operating until proof has been provided to AMS that all unpaid livestock sellers have been paid in full. Once proof of payment has been confirmed by AMS, RD Cattle must pay a civil penalty of $2,000, before the prohibition from registering is lifted.

The P&S Act requires that every market agency, packer, and dealer must execute and maintain a bond applicable to the activity or activities in which the entity engages. Operating without an adequate bond or bond equivalent is a violation of the P&S Act. The P&S Act requires subject entities to issue 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 and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act. Entities subject to the P&S Act are required to keep and fully disclose accurate records regarding all transactions involved with their business when requested by AMS.

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 [email protected].

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