United States

Department of

Agriculture

United States Department of Agriculture

Agricultural Marketing Service

The Packers & 

Stockyards Act

Congress identified several purposes for the Packers and 

Stockyards Act (P&S Act). These include:

• Assuring fair competition and trade practices 

• Safeguarding farmers and ranchers 

• Protecting consumers

• Protecting livestock, meat, and poultry industry 

members from unfair, deceptive, unjustly discrimina- tory, and monopolistic practices

The Agricultural Marketing Service (AMS) administers the P&S Act through the Packers and Stockyards 

Division of its Fair Trade Practices Program. AMS is 

an agency within the United States Department of 

Agriculture (USDA).

History

President Harding signed the P&S Act on August 15, 1921. Congress 

passed the P&S Act to address serious concerns about anticompetitive activities among meat packers. Initially, the P&S Act gave USDA 

authority to regulate meat packers and those engaged in livestock 

marketing activities at large public stockyards. The P&S Act also 

authorized USDA to hear complaints and issue reparation orders 

when violations of the P&S Act by stockyard owners, market agencies, or dealers result in damages.

Congress has updated the P&S 

Act many times to keep up with 

a changing industry. In 1958, 

Congress expanded jurisdiction 

under the P&S Act to include 

all auction markets operating in 

commerce. Congress also added 

all the livestock activities in 

commerce of market agencies 

and dealers.

In 1976, Congress increased 

financial protection for livestock 

producers in two ways. They 

added a bond requirement for 

some packers, and established a 

statutory trust for livestock. They 

also expanded USDA’s jurisdiction over wholesale brokers, 

dealers, and distributors who 

market meat in commerce. 

In 1987, Congress added jurisdiction over live poultry dealers 

and important protections 

for poultry growers. The 1987 

amendments require prompt 

payment for poultry purchased 

and for the services of those 

raising poultry under growing 

arrangements. Congress also 

established a statutory trust for 

poultry. 

In 1999, Congress authorized 

the swine contract library, and 

then, in 2000, required USDA to 

complete an annual assessment 

of the cattle and hog industries. 

In 2002, they expanded USDA’s 

jurisdiction to include swine 

contractors.

In 2008, Congress required 

contractors to give swine 

contract producers and live 

poultry growers the right to 

cancel a contract within three 

days after signing it. They 

required contractors to disclose 

when large capital investments 

may be required over the life 

of the contract. They enabled 

swine contract producers and 

live poultry growers to litigate 

contract disputes where the 

principal part of their production occurs. Congress also gave 

swine contract producers and 

live poultry growers the right to 

decline arbitration before entering into contracts.

www.ams.usda.gov Continued on back
Agricultural Marketing Service The Packers & Stockyards Act

Who Benefits from 

the P&S Act?

The P&S Act safeguards and 

protects livestock producers, 

poultry growers, and consumers. 

It also protects businesses 

engaged in marketing, processing, and distributing livestock, 

meat, and poultry.

Who is Subject to 

the P&S Act?

Those engaged in the business 

of marketing livestock, meat, and 

poultry in commerce are subject 

to the P&S Act. These include 

stockyards, commission firms, 

and livestock auctions. They 

include order buyers and livestock dealers. They include meat 

packers, meat brokers, meat 

wholesalers and distributors. 

They also include swine contractors and live poultry dealers.

Who is Not Subject 

to the P&S Act?

Farmers and ranchers are not 

subject to the P&S Act when 

they buy livestock for their own 

feeding purposes, or when they 

market their own livestock.

Enforcement 

Procedures

AMS’s FTPP Packers and 

Stockyards Division monitors 

industry activities. We also 

conduct investigations and 

regulatory reviews. The investigations and reviews help us 

to determine whether subject 

persons and firms are complying 

with the P&S Act. We resolve 

alleged violations according to 

their seriousness, as follows:

Notices of Violation

We give subject entities notice 

of the alleged violations that we 

found. 

Stipulation Agreements

We offer to settle the violation 

by entering into a stipulation 

agreement. The stipulation 

agreement identifies the violations we found, and the civil 

penalty amount to be paid to 

resolve those violations. If the 

offer is accepted, we agree 

to not pursue further legal 

action against the violator for 

those violations. If the offer is 

not accepted, we may pursue 

enforcement through an administrative complaint, which could 

result in a hearing before an 

administrative law judge.

Administrative Actions

We initiate these legal actions 

within USDA through the 

Office of the General Counsel 

(OGC). The first step is filing 

a complaint alleging specific 

violations of the P&S Act and 

regulations. The accused party 

can respond to the allegations 

and request a hearing before an 

Administrative Law Judge (ALJ). 

Either party may appeal the ALJ’s 

decision to the USDA Judicial 

Officer (JO). The accused party 

may also appeal the JO’s ruling 

to a U.S. Appeals Court, and 

further petition the Supreme 

Court to review the appellate 

ruling. 

U.S. Department of 

Justice Actions

When warranted, we ask OGC 

to refer alleged violations to 

the U.S. Department of Justice. 

A United States Attorney brings 

these actions in U.S. District 

Court. The accused party can 

respond to the allegations and 

request a hearing. In a civil 

case, either party may appeal 

the ruling to a U.S. Appeals 

Court, and further petition the 

Supreme Court to review the 

appellate ruling. In a criminal 

case, a not guilty ruling is final. 

However, the accused party 

may appeal a guilty verdict, and 

either party may appeal the 

sentence imposed after a guilty 

verdict.

Penalties for 

Violations

The P&S Act authorizes 

the following penalties for 

violations:

• Cease and desist order

• Suspension of business

operations

• Civil penalties up to a

maximum of $29,270 

per violation; $85,150 

for violation of poultry

payment provisions

• Permanent injunctions, 

fines, or jail sentences

for Justice actions

Please direct comments 

or questions about 

this publication to the 

following:

USDA Agricultural Marketing 

Service

Fair Trade Practices Program

Packers and Stockyards Division

1400 Independence Avenue, SW

Washington, DC 20250-3601

Phone: 202-720-7051

Fax: 202-205-9237

Email: PSDWashingtonDC@ams.

usda.gov

Toll-Free HOTLINE: 

1-833-DIAL PSD

(1-833-342-5773)

This publication does not create 

or confer any rights for or on 

any person. Nor does it operate 

to bind the public. See 7 U.S.C. 

§§181 – 229c for the text of the

P&S Act.

USDA is an equal opportunity provider, 

July 2020 www.ams.usda.gov employer, and lender.