Agricultural Marketing Service

U.S. DEPARTMENT OF AGRICULTURE

Packers and Stockyards Division

Annual Report 2020

Protecting fair trade practices, financial integrity, and 

competitive markets for livestock, meat, and poultry
Packers and Stockyards Division Annual Report 2020

TABLE OF CONTENTS

Packers and Stockyards Division Overview � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1

Packers and Stockyards Division Snapshot � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3

Economic State of the Livestock and Poultry Industries� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4

Business Practices in the Livestock and Poultry Industries� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11 

PSD Investigation and Enforcement Activities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 23

PSD Program Performance and Efficiency � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 34

Appendix A - Data Sources � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 37

Appendix B - Field Staff and Office Locations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 38

Contacting PSD � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 39
Packers and Stockyards Division Annual Report 2020

1

 PACKERS AND STOCKYARDS DIVISION OVERVIEW PACKERS AND STOCKYARDS DIVISION OVERVIEW

The Packers and Stockyards Division (PSD) is one of four divisions within the Fair Trade Practices Program 

(FTPP), Agricultural Marketing Service (AMS), U.S. Department of Agriculture (USDA). PSD operates 

under the authority of the Packers and Stockyards Act of 1921 (Act) (7 U.S.C. § 181 et seq.), which makes it 

unlawful for packers, live poultry dealers, market agencies selling or buying on commission, dealers, and swine 

contractors to engage in or use any unfair, unjustly discriminatory, or deceptive practice or device. In fiscal year 

(FY) 2020, PSD’s budget was $23.0 million and it had 115 employees as of the end of the fiscal year. PSD’s three 

regional and two headquarters offices are:

• Eastern Regional Office in Atlanta, Georgia

• Midwestern Regional Office in Des Moines,

Iowa

• Western Regional Office in Aurora,

Colorado

• Enforcement Branch in Washington, DC

• Competition Branch in Washington, DC

Each Regional Director manages a geographic area

Directors supervise a staff of auditors, marketing 

specialists, resident agents, attorneys, and administrative 

support staff who work from the regional office or various 

field locations throughout the region.

Staff members in the regional offices and field locations 

conduct investigations and regulatory activities. These

include business audits, weighing verifications, and dayto-day industry monitoring. Their work often takes them

to the regulated entities' business locations. A Central

Reporting Unit (CRU) located in the Western region 

processes annual reports filed by entities subject to the 

Act

The Enforcement Branch (EB) provides litigation support 

by reviewing investigations and preparing sanction and 

stipulation recommendations. It also assists and coordinates with the USDA Office of the General Counsel 

(OGC) and the U�S� Department of Justice (DOJ) on investigations, preparing for hearings, negotiating 

settlements, and testifying at hearings� The EB also develops PSD policy; prepares informational materials; 

and issues press releases, notices, and regulations under the Act�

REGIONAL EXPERTISE

In addition to its geographic area, each office 

maintains expertise in one or more species 

of livestock or poultry� The Eastern Regional 

Office focuses on poultry, the Midwestern 

Regional Office on hogs, and the Western 

Regional Office on cattle and sheep. 

In FY 2020, PSD had 115 employees, which 

included 73 office staff and supervisors in 

headquarters and in the regional offices. 

PSD also had resident employees (resident 

agents, auditors, and market inspectors) 

who report to the regional offices and are 

located throughout the country to provide 

core services nationwide. Each regional office 

has agent supervisors who manage teams of 

agents, marketing specialists, and auditors� 

The geographically dispersed resident 

employees enable PSD to maintain close 

contact with the entities PSD regulates as well 

as livestock producers and poultry growers 

(see Appendix B, figure 8).

The Competition Branch (CB) monitors and identifies anti-competitive practices in the cattle, hog, poultry 

and lamb industries� The CB also processes and summarizes industry data, and provides regulatory impact 

analyses on proposed rules and regulations�

1 Packers and Stockyards Division Overview
Packers and Stockyards Division Annual Report 2020

 PACKERS AND STOCKYARDS DIVISION OVERVIEW

OVERVIEW OF PSD AUTHORITIES AND RESPONSIBILITIES 

Under the Act, the Secretary of Agriculture (Secretary) regulates specified activities of businesses engaged 

in the marketing of livestock, meat, and poultry. PSD's regulatory oversight includes the following business 

entities:

• Livestock market agencies (entities selling on commission, e.g., auction markets and commissio

buyers)

• Livestock dealers

• Stockyards

• Packers

• Swine contractors

• Live poultry dealers (those who obtain poultry for slaughter either by purchase or under poultry 

growing arrangements)

The Act describes unlawful behavior, and regulations issued under 

the Act mandate certain business practices by regulated entities

These include mandatory registration of market agencies and 

dealers

All market agencies, dealers, and packers (whose annual livestock 

purchases exceed $500,000) must secure bonds or bond equivalents 

to ensure payment to livestock sellers. Market agencies selling 

livestock on commission are required to establish and maintain 

a separate bank account designated as a “custodial account for 

shippers proceeds” and deposit into that account the proceeds from 

the sale of livestock. Regulated buyers (dealers and packers) must

pay promptly for livestock. Market agencies selling on commission 

must also promptly remit seller proceeds

PSD uses its authority to investigate alleged violations of the 

Act and regulations. USDA’s OGC represents the Secretary in

enforcement actions under the Act and regulations. OGC takes

administrative action when PSD identifies violations of the 

Act. OGC may also refer matters to DOJ for prosecution, when

warranted

TRUST PROVISIONS

To protect unpaid cash sellers of 

livestock, the Act makes packers 

subject to trust provisions. 

An unpaid cash seller of livestock 

triggers these provisions by filing a 

written claim with both the packer and 

PSD� 

After receiving a claim, the packer 

must hold in trust livestock inventories 

and receivables, and proceeds from 

meat, meat food products, or livestock 

products until it makes full payment to 

all unpaid cash sellers�

PSD can penalize a packer for failing 

to pay for livestock in violation of the 

Act and can bring an action to prevent 

dissipation of trust assets�

A similar provision applies to live 

poultry dealers� 

2
Packers and Stockyards Division Annual Report 2020

 PACKERS AND STOCKYARDS DIVISION SNAPSHOT

PSD benefits America's agriculture and consumers by enforcing provisions for fair trade, prompt 

payment, and competition in the marketing of livestock, meat, and poultry. Below is a snapshot of the

division in 2020 and its accomplishments in promoting industry compliance with the Act

115 Employees 85% Industry 

Compliance Rate 

Note: See discussion 

on measuring industry 

compliance on page 34.

PSD Budget

$23.0 Million

6,068 Regulated 

Entities

$32.0 Million Recoveries

(Custodial Account 

Shortages, Bond and 

Trust, Restitution, and 

Other) 

1,860 Investigations 

Closed in the Field

1,870 Regulatory 

Reviews Completed

3 Packers and Stockyards Division Snapshot
Packers and Stockyards Division Annual Report 2020

 ECONOMIC STATE OF THE LIVESTOCK AND POULTRY INDUSTRIES

Section 415 of the Act (7 U.S.C. § 228d) requires PSD to provide Congress an annual assessment of the cattle 

and hog industries. The first part of this section assesses the general economic state of the industries that 

are regulated by PSD. This includes trends in the number of entities, financial conditions, and market share 

of the four largest packers by type of livestock (market concentration). The second part examines changing

business practices of entities in the regulated industries. This includes pricing and procurement methods and

the volume marketed through market agencies and direct purchases. Finally, this section outlines specific 

concerns about the events and conditions in the industries regulated under the Act

PSD relies on data from reports that regulated entities are required to file with PSD each year. The annual 

reports for the 2020 calendar-reporting year are not due until April 15, 2021. As a result, most data series

in this section end with the 2019 reporting year. There are exceptions. These include statistics on entitie

currently bonded and/or registered as recorded in PSD databases, USDA Agricultural Census statistics on 

swine contractors, and statistics on types of procurement methods compiled from data reported to AMS under 

the provisions of the Livestock Mandatory Reporting Act (LMR) (7 U.S.C. § 1635 et seq.). 

The following entities are subject to the Act:

• All packers operating in interstate commerce are subject to the unfair and deceptive practices 

provisions and prompt payment provisions of the Act. Packers that purchase $500,000 or more of

livestock for slaughter annually are required to be bonded. Bonded packers include entities operating

federally inspected plants, as well as some entities operating State-inspected plants. Some packers that

purchase less than $500,000 of livestock voluntarily obtain bonds

• Live poultry dealers include persons or entities who purchase poultry for slaughter and poultry 

integrators who contract with producers for grower services to raise the integrators' chicks or poults to 

slaughter weight

• Livestock dealers purchase livestock for resale on their own account or may purchase or sell as the agent 

or representative of another entity

• Market agencies are engaged in the business of buying or selling livestock in commerce on a commission 

basis

• Posted stockyards are physical facilities and are not necessarily separate businesses. Livestock auctions,

which are market agencies that sell on commission, are usually located at posted stockyards

• Swine contractors contract with hog producers to care for and raise the contractors’ hogs for slaughter

4 Economic State of the Livestock and Poultry Industries
Packers and Stockyards Division Annual Report 2020

 ECONOMIC STATE OF THE LIVESTOCK AND POULTRY INDUSTRIES

Table 1 lists the number of regulated entities subject to the Act as of the end of the FY 2020.1 There were 313 

bonded packers, 92 live poultry dealers, 4,452 registered livestock dealers and market agencies buying on 

commission, and 1,211 market agencies selling on commission. The number of bonded packers decreased from

319 to 313, and the number of livestock dealers and market agencies buying on commission also fell slightly

The number of market agencies selling on commission increased somewhat from 2019. The total number of

livestock dealers and market agencies buying on commission includes packer buyers, whose bond coverage is 

provided by their employing packers

The number of live poultry dealers has been declining for most of the past decade. In 2012, as the economy

recovered from a severe recession and feed prices returned to more normal levels, poultry production 

rebounded and there was some expansion in the industry. Since then, the number of firms has been shrinking as 

some smaller companies exited the industry and others were acquired by larger operations

1 Data sources for all tables and figures are listed in Appendix A.

Table 1. Number of Bonded Packers, Livestock Dealers, Market Agencies, 

and Live Poultry Dealers Reporting to PSD, 2011–2020

Year Bonded 

Packers

Livestock Dealers, 

Market Agencies 

Buying On 

Commission and 

Packer Buyers

Market Agencies 

Selling on 

Commission

Live Poultry 

Dealers

2011 258 4,572 1,220 98

2012 295 4,619 1,234 112

2013 297 4,639 1,216 110

2014 295 4,650 1,202 107

2015 303 4,607 1,224 105

2016 294 4,660 1,221 101

2017 304 4,634 1,223 99

2018 312 4,582 1,236 94

2019 319 4,495 1,204 90

2020 313 4,452 1,211 92

There were 575 swine contractors as of 2017 (Table 2). From 2012 to 2017, the total number of hog farms

increased from 55,882 to 64,781, compared to a decline of about 25 percent between 2007 and 2012. The 

number of contractors and contract growers also increased from 2012 to 2017. When slaughter hogs are grown 

under contract, swine contractors typically own the hogs and sell the finished hogs to pork packers. 

PSD = Packers and Stockyards Division

5
Packers and Stockyards Division Annual Report 2020

 ECONOMIC STATE OF THE LIVESTOCK AND POULTRY INDUSTRIES

Swine contractors typically provide feed and medication to contract growers who own the growing facilities 

and provide growing services. PSD regulates the business practices of swine contractors, but swine contractors

are not required to register with PSD, maintain bonds, or file an annual report.2

Table 2. Number of Farms by Swine Grower / Producer Type

Grower / Producer Type 2007 2012 2017

Independent Grower 65,067 47,336 55,739

Contractor or Integrator 737 515 575

Contract (contract grower) 8,995 8,031 8,557

Total 74,789 55,882 64,871

2 Data from Census of Agriculture

The value of livestock purchases for packers reporting to PSD increased to $64.1 billion in 2019 from 

$61.5 in 2018 (Figure 1). The dollar volume for livestock sold on commission declined to $27.9 billion, and 

the value of livestock bought as dealers on their own account and the volume bought on commission also 

decreased from the prior year, to $18.2 billion and $11.5 billion, respectively. 

Figure 1. Value of Livestock Purchased by Packers, Dealers, and Market Agencies Buying on 

Commission, and Value of Livestock Sold Through Market Agencies Selling on Commission,

2010–2019

5

15

25

35

45

55

65

75

85

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Billions ($)

Commision Sales Value of Livestock Packer Purchases

Bought on Commission Bought for Own Account

6
Packers and Stockyards Division Annual Report 2020

 ECONOMIC STATE OF THE LIVESTOCK AND POULTRY INDUSTRIES

PSD requires packers that purchase more than $500,000 of livestock to report the number of head slaughtered 

annually. The number of cattle slaughtered by packers reporting to PSD has been increasing steadily in recent

years, from 28.1 million head in 2015 to over 30 million in 2019 (Table 3). Total cattle includes fed steers and 

fed heifers, cows, and bulls, but excludes calves

The number of hogs slaughtered by packers reporting to PSD in 2019 is the highest in the past decade at 130.8 

million head

Sheep and lamb slaughter reported to PSD decreased to 1.7 million head from 2.3 million in the prior ye

Live poultry dealers reporting to PSD processed an estimated 56.4 billion pounds of chicken, the highest level 

reported in the past decade. Turkey production reported to PSD declined to 7.4 billion pounds in 2019, fro

7.5 billion in 2018.

Table 3. Annual Volume of Livestock Purchased for Slaughter by Packers

and Poultry Processed by Live Poultry Dealers Reporting to PSD, 2010–2019

(Million Head) (Billion Pounds)

Year Cattle Hogs Sheep and 

Lambs Broilers Turkeys

2010 33.0 110.1 1.9 48.4 7.2

2011 33.8 108.9 1.8 49.0 7.1

2012 33.5 110.1 2.1 49.4 7.5

2013 31.8 113.3 2.7 52.1 7.4

2014 30.0 122.3 2.3 50.1 7.2

2015 28.1 113.7 2.1 52.2 6.8

2016 29.3 116.3 2.0 54.1 7.3

2017 31.3 120.7 2.0 54.1 7.6

2018 32.0 122.8 2.3 55.7 7.5

2019 30.6 130.8 1.7 56.4 7.4

PSD = Packers and Stockyards Division

7
Packers and Stockyards Division Annual Report 2020

 ECONOMIC STATE OF THE LIVESTOCK AND POULTRY INDUSTRIES

There were slight changes in the number of plants in 2019; cattle plants increased to 156 from 151 in 2018, 

hog plants fell to 143 and the number of plants slaughtering sheep and lambs increased to 71 in 2019. Many of 

these are small multispecies plants that slaughter only a few sheep and lambs (Table 4). Poultry plant counts for

facilities that process broilers, turkeys, duck, and other fowl decreased to 218.

Table 4. Number of Slaughter Plants Operated by Packers and 

Live Poultry Dealers Reporting to PSD, 2010–2019

Year Cattle and Calves Hogs Sheep and Lambs Poultry

2010 135 129 59 NA

2011 147 136 70 NA

2012 168 157 81 NA

2013 166 143 79 NA

2014 163 125 72 230

2015 161 138 81 240

2016 150 141 73 220

2017 150 145 70 224

2018 151 144 65 223

2019 156 143 71 218

PSD = Packers and Stockyards Division NA = Not Available

8
Packers and Stockyards Division Annual Report 2020

 ECONOMIC STATE OF THE LIVESTOCK AND POULTRY INDUSTRIES

Concentration in Meat Packing and Poultry Processing

In Table 5, the “Total Value Purchases” column differs from the other columns insomuch as it measures 

concentration in dollar values rather than in weight or number of head. It is the four largest packers’ share

of the total dollar value for all cattle, hogs, sheep, and lambs. Packers provide the data for the total value

concentration ratios in their annual reports to PSD

Concentration ratios for steers and heifers, cows and bulls, hogs, and sheep and lambs are based on the number 

of head processed. PSD determines the concentration ratios from internal USDA data on the number of head

each packer processed as a share of Annual Commercial Slaughter reported by National Agricultural Statistics 

Service (NASS). Broiler and turkey concentration ratios are the four largest processors’ share, by weight, as

reported on live poultry dealer annual reports filed with PSD.

The four largest packers’ share of industry expenditures on livestock for slaughter has ranged from 66 to 68 

percent for the past decade (Table 5). The four largest packers that slaughter steers and heifers accounted for

85 percent of total steer and heifer slaughter in 2019, an increase from the previous year. Concentration in steer 

and heifer purchases ranged from 83 to 85 percent in the past decade. 

Cow and bull slaughter has been consistently less concentrated than fed cattle slaughter. The four-firm 

concentration ratio was 50 percent in 2019, down from its highest level of 60 percent in 2013. 

The four-firm concentration ratio for hog slaughter decreased to 67 percent in 2019, and has been in the low to 

mid-60’s range in most years.The four-firm concentration ratio in the sheep and lamb market has been less than 

60 percent since 2013. The market shares and other concentration measurements likely overstate concentration 

in the lamb market because non-traditional markets account for as much as one-third of the lambs slaughtered 

in the United States and are not included in the totals

Concentration in broiler slaughter has ranged between 50 and 54 percent in the past decade. The share of

production accounted for by the four largest turkey slaughter firms has been between 53 and 58 percent over 

the last 10 years

The Herfindahl-Hirschman Index (HHI) is another measure of industry concentration, and is shown in Table 6. 

The HHI is calculated by summing the squares of the individual firms' market shares. PSD calculates the HHI 

of market concentration for packers from the individual packers’ market shares based on Annual Commercial 

Slaughter totals. For context, these concentration levels are particularly important for understanding the firms’

market power in the wholesale and retail-facing national market for the relevant meat or poultry. Comparing

the numbers in the table to the DOJ/FTC (Department of Justice/Federal Trade Commission) Horizontal 

Merger Guidelines, steer and heifer slaughter has been moderately concentrated in recent years, while cow and 

bull slaughter, and lamb slaughter are relatively unconcentrated. The HHI for hog slaughter passed the 1,500

mark in 2018, but was in the unconcentrated range in the other years. 

Because of constraints on the distance live animals can be efficiently transported, livestock producers 

and poultry growers face regional markets for their products that are more concentrated than the national 

concentration measures indicate. For example, a study using the Agricultural Resource Management Survey 

(ARMS) found that almost 22 percent of broiler growers have only one integrator in their area, and another 30 

percent have only two integrators

3 Similarly, the regional markets in which cattle are principally acquired are, 

in most cases, significantly more concentrated than the national markets into which beef products are sold.

 3 MacDonald, James M. 2014. Technology, Organization, and Financial Performance in U.S. Broiler Production. USDA Economic Research Service, Economic 

Information Bulletin No. 126. 

9
Packers and Stockyards Division Annual Report 2020

 ECONOMIC STATE OF THE LIVESTOCK AND POULTRY INDUSTRIES

Table 5. Annual Four-Firm Concentration Ratios Among Meat Packing and 

Poultry Processing - Federally Inspected Plants, 2010–2019

Year

Total Value 

Purchases 

(Total $ Value)

 %

Steers & 

Heifers 

(Total Head)

 %

Cows & 

Bulls 

(Total Head) 

%

Hogs

(Total Head)

 %

Sheep & 

Lambs 

(Total Head)

 %

Broilers 

(Total Lbs.)

 %

Turkeys 

(Total 

Lbs.)

 %

2010 67 85 53 65 65 51 56

2011 67 85 52 64 67 52 55

2012 68 85 57 64 62 51 53

2013 67 85 60 64 59 54 53

2014 67 83 57 62 55 51 58

2015 68 85 58 66 56 51 57

2016 67 84 58 66 59 50 57

2017 67 83 55 66 56 51 53

2018 68 84 52 70 55 54 55

2019 66 85 50 67 53 53 55

Table 6. HHI Meat Packing - Federally Inspected Plants, 2015–2019 4

Year

Steers & 

Heifers 

(Total Head)

Cows & 

Bulls 

(Total Head) 

Hogs

(Total Head)

Sheep & 

Lambs 

(Total Head)

2015 1,933 1,048 1,327 1,093 

2016 1,902 1,068 1,337 1,324 

2017 1,852 1,004 1,418 1,210 

2018 1,869 938 1,547 1,077

2019 1,878 923 1,475 1,059

DOJ/FTC Horizontal Merger Guidelines on Market Concentration and HHI

 • Unconcentrated Markets: HHI below 1,500 

 • Moderately Concentrated Markets: HHI between 1,500 and 2,500 

 • Highly Concentrated Markets: HHI above 2,500 

4 A concentration analysis of national cattle slaughter reflects the number of head slaughtered by each company nationally. The regional markets where cattle 

are principally acquired for slaughter are, in most cases, significantly more concentrated.

10
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

Procurement and Pricing Methods

The pricing method that sellers and purchasers agree to use for a transaction is a fundamental characteristic of 

any market transaction. For livestock, pricing methods are often divided into two categories: live-weight and 

carcass pricing methods

In live-weight purchasing of livestock, the final payment is based on the weight of the live animal. 

Transactions that use some variation of live-weight purchasing are usually on an “as is” basis with a single 

price per pound for all animals in the entire transaction. The price may be fixed by negotiation in advance or 

established by formula from prices reported by USDA, AMS or a market price reporting service when the 

animals are delivered or slaughtered. In some instances, provisions may be made for paying different prices 

for animals that differ significantly from other animals in the transaction (e.g., animals that are much smaller 

than the average for the transaction may receive a different price).

In a carcass-based purchase, the final payment is based on each animal’s carcass weight, which is the weight 

of the carcass after the animal has been slaughtered and eviscerated. Carcass-weight transactions can involve

a single price per pound for all of the carcasses in a lot. They can also involve schedules of premiums or

discounts based on the quality of the carcasses. These may be referred to as "carcass-merit" transactions. Th

price of livestock can also be determined by other features, such as time of delivery and number of animals 

in the transaction. The price before premiums or discounts is referred to as the base price. One benefit of 

carcass-based pricing is the ability to convey market signals to livestock producers through premiums and 

discounts. The proportion of cattle purchased on a carcass basis has ranged from 59 percent to 68 percent of 

total purchases, while the proportion of calves purchased on a carcass-weight basis is much lower and varies 

widely from 14 percent to 44 percent (Table 7)

Carcass-based purchases have become the predominant method to procure hogs for slaughter and have 

comprised between 76 and 83 percent of the total over the last decade. The proportion of sheep and lambs 

purchased on a carcass basis has ranged from 26 to 40 percent.

Table 7. Percentage of Livestock Purchases on a Carcass-Weight Basis

Packers Reporting to PSD, 2010–2019

Year Cattle 

%

Calves

 %

Hogs 

%

Sheep and Lambs 

%

2010 59.1 36.2 77.5 31.6

2011 59.2 44.0 76.0 40.8

2012 60.6 28.9 76.4 36.2

2013 63.9 35.7 83.1 27.5

2014 62.9 38.7 76.9 26.5

2015 63.1 42.4 82.1 29.2

2016 66.1 41.3 82.3 30.4

2017 65.8 14.9 81.5 26.3

2018 61.0 21.0 83.4 28.9

2019 68.1 18.3 80.1 25.1

PSD = Packers and Stockyards Division

11 Business Practices in the Livestock and Poultry Industries
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

The number of cattle sold through livestock auctions decreased from 35 million head in 2010 to about 32 

million head in 2019 (Table 8). Stockers (heifers and/or steers that are being raised on pasture or other forage) 

and feeders (weaned calves that have been raised to a certain weight and then sent to feedlots to be fattened) 

make up the majority of cattle sold. Breeding stock, such as replacement heifers, young cows, and bulls, also 

tend to sell through livestock auctions. Livestock auctions also sell a significant number of slaughter (cull) 

cows and bulls (beef or dairy cows and bulls that are no longer needed for breeding or milk production)

The volume of hogs sold through market agencies selling hogs on commission from 2010 to 2019 has declined 

from more than 8 million head to just over 7 million in recent years (Table 8). The volume of sheep and 

lambs sold through market agencies selling on commission has fluctuated slightly over the past 10 years, but 

remained close to 3 million head in most years (Table 8). 

Table 8. Volume of Livestock Marketed Through Market Agencies 

Selling on Commission Reporting to PSD, 2010–2019

(Thousand Head)

Year Cattle Hogs Sheep and Lambs 

2010 35,623 8,471 2,974

2011 34,956 8,919 3,046

2012 33,683 8,119 2,857

2013 33,690 7,319 3,162

2014 33,426 7,185 3,079

2015 31,650 7,453 3,015

2016 32,970 7,662 3,416

2017 35,065 7,744 3,293

2018 34,425 7,305 3,425

2019 32,562 7,276 3,285

PSD = Packers and Stockyards Division

12
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

Packers use multiple direct exchange procurement methods to obtain livestock for slaughter. The methods

commonly fall into two categories: (1) “committed procurement” arrangements that commit the livestock to 

a particular packer more than 14 days prior to delivery, and (2) cash or “spot” sales for immediate delivery or 

delivery within 14 days

Committed procurement usually uses some form of formula pricing. In cash sales, the prices generally are

negotiated, although the transaction may include grids to establish 

premiums and discounts

Important components of committed procurement are “packer 

fed” livestock, “forward contracts,” and “marketing agreements.”

PSD defines “packer fed” livestock as all livestock obtained for 

slaughter that a packer, a subsidiary of the packer, the packer’s 

parent firm, or a subsidiary of the packer’s parent firm owns, in 

whole or part, for more than 14 days before the packer slaughters 

the livestock

PSD considers “forward contracts” to be agreements between 

packers and sellers for specific lots or quantities of livestock 

to be delivered more than 14 days in the future. The price of

the livestock in a forward contract can be set at the time of the 

contract or determined upon delivery based upon an agreed-pricing 

arrangement

The term “marketing agreements” includes a variety of arrangements that establish an ongoing relationship for 

trading multiple lots of livestock rather than negotiating single lots. In these arrangements, the seller agrees to

deliver livestock to the packer at a future date, with the price generally determined by some type of formula 

pricing mechanism. The price is often based on the reported cash market or meat price at the time of delivery,

with premiums or discounts determined by evaluation of carcass characteristics

AMS publishes prices and volumes of livestock purchased under alternative pricing methods as reported under 

the provisions of the Mandatory Price Reporting Act (https://mpr.datamart.ams.usda.gov/). Individual packers 

use a variety of pricing and procurement methods, ranging from packers that rely on production and marketing 

agreements to packers that rely primarily on the open market

In 2020, formula pricing represented 64 percent of total fed cattle procurement, compared to about 48 percent 

in 2011 (Figure 2). Forward contracting decreased to 9 percent in 2020, and has been declining as a share of the

total since 2015. Negotiated pricing, including negotiated grid and cash or spot market transactions, increased

from the prior year to about 27 percent of total fed cattle procured (not including packer-owned cattle) in 2020, 

but is down from 40 percent in 2011

13
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

Figure 2. Fed Cattle Procurement by Purchase Type, 2011–2020

0

10

20

30

40

50

60

70

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Percent of Total

Formula Forward Contract Negotiated Grid Cash

With the decline in the volume of negotiated spot market hogs, both production and slaughter sectors 

increasingly question whether the negotiated live price fully reflects the value of fed hogs sold for slaughter. 

Consequently, the industry began migrating from formulas based on negotiated live or carcass prices to other 

publicly reported prices. A common replacement price is the pork carcass cutout price reported by AMS.

14
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

Figure 3. Hog Procurement by Purchase Type, 2011–2020

0

10

20

30

40

50

60

70

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Percent of Total

Producer Sold Formula Packer-Owned and Packer Sold Producer Sold Negotiated

For all pork packers reporting to AMS in 2020, over 56 percent of hog purchases were based on formula 

pricing (Figure 3). Pork packers obtained about 1.5 percent of their hogs through negotiated purchases in 2020

compared to about 4 percent in 2010. Procurement based on negotiated pricing has been under 3 percent since

2014. Packer-owned hogs accounted for about 42 percent of hog slaughter reported to AMS in 2020.

Lambs tend to be marketed in one of two channels. In the traditional market for slaughter lambs, the lambs

are fed in feedlots and marketed to packers. It is this traditional market that supplies most of the lamb to

supermarkets and traditional stores

Lamb packers use similar methods to purchase lambs as beef and pork packers. The methods include spot

markets, marketing agreements, forward contracts, and packer feeding. In the traditional lamb market in

2020, packers purchased almost 28 percent of their lambs under negotiated prices. They purchased about 68 

percent with marketing agreements based on formula pricing, and packers fed about 4 percent of the lambs for 

slaughter (Figure 4)

The non-traditional market is much different. It is characterized by small butchers and meat shops that process 

lambs and sell directly to consumers. Consumers can often choose the lamb before slaughter and may have the

choice of purchasing the lamb and processing it themselves

One aspect of the non-traditional market is that lambs are not typically processed in federally inspected 

facilities. Also, the packers that process the lambs are far too small to meet any of the mandatory price

reporting requirements. Consequently, there are very limited data available on the number of lambs in the nontraditional market. There are also limited data on the prices paid for the lambs or the amount of meat produc

Some estimates suggest that the non-traditional market for lambs may account for as much as one-third of the 

lambs produced in the United States

15
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

There are also small butchers and meat shops that process cattle and hogs to sell directly to end consumers, 

and there are consumers that purchase cattle or hogs and have them butchered. However, unlike in the lamb

market, these buyers purchase a very small portion of the cattle and hogs produced in the United States

Figure 4. Lamb Procurement by Purchase Type, 2011–2020

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Percent of Total

Formula Packer-Owned Negotiated

16
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

CHANGES IN OPERATION AND ORGANIZATION

PSD uses information about business practices at the packing plant level to identify industry trends. Such

information includes the intensity of plant operations (e.g., one or two shifts per day), the number of plant

in business at any given time, and the ownership of those plants. Plant closures or re-openings can affect 

competition by shifting supply and demand patterns. The FTC and the DOJ Antitrust Division evaluate all

livestock, packer, and live poulty dealer mergers and acquisitions, under the Hart-Scott-Rodino Antitrust 

Improvements Act of 1976 (Public Law 94-435).

PSD monitors packers’ mergers and acquisitions to determine whether a change in business practices might 

reduce competition. Other changes in operations and industry conditions including procurement methods,

international trade, and regulatory changes may also affect competition as entities attempt to adjust to changing 

conditions. PSD monitors these industry events for any competitive effects.

Cattle, Sheep, and Hogs

Relatively few mergers, acquisitions, openings, or closings took place in 2020. It is likely the uncertainty

created by the COVID-19 pandemic discouraged investment to some extent. Following are some of the more

prominent mergers, acquisitions, opening, or 

closings in fiscal year 2020.

In December 2019, Tyson Fresh Meats, Inc.

reopened its beef packing plant in Holcomb, 

Kansas. The plant had been inoperative since

August when fire damage forced Tyson to 

close it for repairs. Tyson's Holcomb plant

was one of the largest in the United States, 

processing over 5,000 head per day

In December, JBS USA announced plans 

to lease and eventually acquire the J&B 

Group, Inc. beef processing plant in 

Pipestone Minnesota. J&B had planned to 

close the facility by the end of December 

before JBS USA agreed to lease and 

ultimately purchase the plant

Marfrig Global Foods purchased the remaining shares of National Beef Packing Co., LLC that were 

owned by Jeffries Financial Group in December 2019. Marfrig was already the majority owner in National 

Beef along with Jeffries Group, U.S. Premium Beef, and some members of National Beef's management. The 

purchase brought Marfrig's ownership share in National Beef to over 80 percent. Marfrig is among the world's 

largest meat packing firms. It is a Brazilian corporation and its stock is publicly traded on the Brazilian Stock 

Exchange

Walmart opened a case-ready facility in Thomasville, Georgia in January, 2020. Walmart is a new entrant into 

the beef processing industry. FPL Foods, Inc. in Augusta, Georgia will manage the operations of the plant

The facility is part of a branding program in which Walmart sources cattle from producers, has them processed 

at Creekstone Farms in Arkansas City, Kansas, and then further processes the boxed primals at the case-ready 

facility in Thomasville, Georgia

17
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

Mountain States Lamb Cooperative ceased operations in July 2020 and sold its slaughter and breaking 

plant in Greely, Colorado to JBS USA in a bankruptcy auction. JBS immediately announced that it would

not process sheep or lambs at the facility but would convert it to a further processing plant for beef and pork

Mountain States had been the second largest lamb processor in the United States and the only major lamb 

packer that had been organized as a cooperative in recent decades

In July 2020, American Foods Group in Green Bay, Wisconsin purchased Calihan Pork Processors, Inc. in

Peoria, Illinois. American Foods was the fifth largest U.S. beef packer, and Calihan specialized in producing 

hot boned pork

In August 2020, Maxwell Foods, which is a subsidiary of Goldsboro Milling Co., announced it would 

permanently close its hog operations in 2021. The company cited low prices and the effects of the coronavirus 

COVID-19 pandemic, making current and projected financial losses unsustainable for the company to continue 

operating. The business, which includes 150 contract

farms in North Carolina, will cease operations in a 

phased approach based on growing cycles

Colorado Lamb Processors, Inc. began operations

in September 2020 at its new slaughter facility in 

Brush, Colorado. Initially, the firm only processed a 

few hundred head per day, but it expects to increase 

slaughter to over 1,000 head per day. Colorado Lamb

Processors did not have facilities to fabricate carcasses 

although it has indicated that it might add breaking 

capacity in the future. In the near term, Colorado Lamb

Processors expects to sell lamb carcasses with breakers 

as its primary customers

Johnsonville LLC purchased Vermont Smoke and Cure in September 2020. Vermont Smoke and Cure

produced beef, pork, and poultry meat snacks as well as pepperoni and summer sausage. Johnsonville plans to

continue operations at the Vermont plant as part of the Johnsonville organization

CHANGING BUSINESS PRACTICES

The world's largest grocery retailer, Walmart, became a beef packer as defined in the Packers and Stockyards 

Act. Walmart is developing an Angus brand to sell at its supermarkets in the Southeast. It is using a vertically 

integrated model that controls the seedstock; feeds the calves at Mc6 Feedyard in Hereford, Texas; processes 

the finished cattle at Creekstone Farms in Arkansas City, Kansas; and further processes the boxed beef at 

Walmart's new further processing plant in Thomasville, Georgia. Walmart stated that concern over industry 

concentration was one of the factors that caused it to enter the packing industry

Walmart is not the first large retailer to recently enter the meat and poultry processing industries. In 2019, 

Costco Wholesale opened a poultry complex near Fremont, Nebraska with the primary purpose of supplying 

Costco retail stores with rotisserie chickens.

18
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

COVID-19 caused many changes in business practices for packers in 2020. Most are likely temporary changes 

that will only last as long as the COVID-19 crisis, but some will become permanent. At some point, almost

every large packing facility and or poultry processing plant temporarily closed or reduced production due to 

COVID-19. Efforts to mitigate transmission of the SARS-CoV-2 virus included the use of personal protective 

equipment, spacing out workstations, and adding protective barriers between workstations among other 

measures

The entire livestock, meat, and poultry complex was forced to adopt COVID-19 mitigation measures. Unlike

meat packers and poultry processors, livestock producers do not tend to have large numbers of employees in 

comparatively small spaces. Therefore, the mitigation measures implemented by most livestock producers were

less extensive.

COVID-19 has changed the way people consume meat and poultry. In 2019, well over half of consumer's food

dollars were spent on food away from home, but that changed in 2020 with "stay at home" orders, restaurants 

that were closed or limited in capacity, closed schools, and public events that were cancelled. After several

months, consumer's habits have changed, and only time will tell if consumers' habits return to pre-COVID-19 

levels

INDUSTRY CONCERNS

There were several competition concerns in 2020. Among the most prominent was the indictment of poultry

executives for conspiring to fix prices. In June, the U.S. Justice Department indicted four people for conspiring 

to fix prices and rig bids for broilers. In October, the Justice Department indicted six more for conspiring to 

fix prices and rig bids from 2011 to at least early 2019. The people indicted were executives or directors for 

Pilgrim's Pride Corp., Tyson Foods, George's Inc., and Claxton Poultry Farms. The Justice Department did n

indicate whether more indictments were expected

Class action lawsuits alleging conspiracies to fix prices among the largest U.S. poultry processors that began 

in 2016 are ongoing. Allegations included manipulating the Georgia Dock price reported by the Georgia 

Department of Agriculture, and sharing production and sales information through a third party consolidated 

data service, Agri Stats Inc. Similar class action lawsuits have been filed against pork packers. 

A fire closed the Tyson plant near Holcomb, Kansas from 

August to December 2019. Prices for fed cattle immediately

fell and boxed beef prices increased. The spread between fed

cattle prices and boxed beef prices increased to record levels

PSD received numerous complaints from cattle producers 

with concerns that the large packer margins were due to 

restrictions of competition and price manipulation. Secretary

Perdue directed PSD to investigate cattle and beef markets 

for violations of competition provisions of the Packers and 

Stockyards Act.

19
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

In March 2020, when States began implementing "stay at home" orders and closing non-essential businesses, 

prices for boxed beef surged again, and cattle prices decreased. The spread between fed cattle prices and boxed

beef prices increased to levels higher than in the period following the closure of the Tyson plant. Beef packers

closed plants or reduced production in April and May as plant employees began contracting COVID-19, and 

boxed beef prices increased further. The spread between fed cattle prices and boxed beef prices increased to

historical highs. PSD again received complaints from cattle producers with concerns that beef packers' margins

were due to price manipulation and a restriction in competition, and Secretary Perdue directed PSD to extend 

the investigation that it started after the Tyson plant closed to include disruptions related to COVID-19.

PSD conducted a thorough investigation of cattle and beef market prices and beef packers' practices after 

the Tyson plant was closed from August to December 2019, and when COVID-19 disrupted markets during 

March, April, and May 2020. Investigation findings were released by USDA in a July 22, 2020 report, 

https://www.ams.usda.gov/sites/default/files/media/CattleandBeefPriceMarginReport.pdf. The findings at 

that point did not preclude the possibility that individual entities or groups of entities violated the Packers 

and Stockyards Act during the aftermath of the Tyson Holcomb fire and the COVID-19 pandemic. The 

investigation into potential violations under the Packers and Stockyards Act is continuing

With respect to COVID-19, the market for hogs and pork took a similar course as cattle and beef markets. 

Retail and wholesale pork prices increased in March as States enacted "stay at home" orders. In April and 

May, when plants closed or reduced output with employees contracting COVID-19, prices for market hogs 

fell, and wholesale pork prices increased. More finished hogs were available than packers could process. Some 

producers who were unable to sell their market-ready hogs, chose to euthanize them. PSD received complaints

that packers' feeding hogs for slaughter contributed to the problem alleging that packers processed their own 

hogs timely but would not accept hogs from independent producers. PSD has opened an investigation into

pork packers' practices when COVID-19 disrupted markets

The large price swings caused by COVID-19 raised concerns about price discovery in cattle and hog markets

An increasingly small share of cattle and hogs are traded on a negotiated cash basis each week. There are

concerns that prices established with the small weekly cash trade do not represent the value of the livestock

Some contracts and marketing agreements for fed hogs incorporate pork cutout or other price series to set base 

prices. Fed cattle contracts and marketing agreements tend to rely on reported negotiated cash price

The share of hogs traded on a negotiated cash basis is typically less than 5 percent. While the share of fed 

cattle traded on a negotiated cash basis is considerably larger, it is often below 20 percent

A number of changes have been offered by Members of Congress, the National Cattlemen's Beef Association 

(NCBA), and other stakeholders, to increase the number of cattle that packers purchase on a cash basis. Most 

involve a requirement that packers purchase a certain percentage of their cattle on a negotiated basis. A report

prepared by several agricultural economists for NCBA recommended employing "market makers" that would 

sell cattle on the cash market while formula and committed sellers compensate the market makers to give them 

an incentive to sell cattle on a cash basis

20
Packers and Stockyards Division Annual Report 2020

 BUSINESS PRACTICES IN THE LIVESTOCK AND POULTRY INDUSTRIES

As the number of cattle sold on a cash basis has decreased, the frequency with which confidentiality 

requirements have prevented AMS Market News from publishing regional price reports has increased. AMS 

contracted with industry experts to examine possible new reporting regions enabling AMS to publish more 

prices while protecting confidentiality. The recommendations were made available to the public in 2020. 

Confidentiality requirements in AMS Market News reports have been a concern in lamb markets for several 

years. The number of lamb packers reporting cash trades to the AMS mandatory price reporting program is so 

small that AMS has difficulty reporting prices. AMS has made a number of changes over the years to keep the 

reports available, but the issue remains a concern

COVID-19 exposed several concerning issues in the latter half of fiscal 2020. Meat and poultry packing 

facilities were vulnerable to COVID-19. Most of the largest plants had to slow production or cease operating at 

times. The numbers of people that contracted COVID-19 in meat and poultry facilities raise concerns about the

health and welfare the plants' production workforce.

The market effects of large plants closing or slowing production also raise concerns. Particularly in beef and 

pork markets, the major plants are so large that closing one plant has substantial effects up and down the supply 

chain. Closing or slowing production in several plants can be catastrophic, resulting in retail food shortages

while producers are forced to euthanize hogs or chickens

Another concern is the difference in the supply chains for retail markets and hotels, restaurants, and institutions 

(HRI). When restaurants began closing due to COVID-19 in March 2020, restaurants and food services 

significantly reduced the amount of meat and poultry they purchased. At the same time, demand for meat and 

poultry in retail markets increased dramatically. The shift in consumer demand for meat and poultry strained

the supply chain in part because products sold to retail markets are not readily interchangeable with products 

sold to HRI. Meat and poultry sold to restaurants is usually packaged differently with equipment that cannot be 

easily adjusted for retail products. Broilers raised for HRI trade are typically smaller birds processed at facilities 

dedicated to processing broilers for the HRI. The industry was able to adjust fairly quickly but for a time, parts 

of the supply chain could not meet demand while other parts were nearly idle

African Swine Fever (ASF) has devastated China's pork industry for the last few years. China was by far the

world's largest pork producer, but some estimates indicate that ASF reduced China's sow herd by as much as 

half. While China's misfortune represented an opportunity for the U.S. pork industry to increase exports to 

China, it also raised concerns that ASF could spread to the United States

Poultry

A low pathogenic variant of avian influenza, H7N3, was detected in 11 commercial turkey farms in North 

Carolina and in one commercial turkey farm in South Carolina in March and April. Two of the premises were 

breeding farms, while the other 10 farms raised turkeys for meat production and about 300,000 birds were 

affected. H7N3 highly pathogenic avian influenza was also confirmed in a commercial meat turkey farm in 

South Carolina where about 32,000 turkeys were affected.

21
Packers and Stockyards Division Annual Report 2020

 PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

Investigations and regulatory activities are two broad types of activities conducted at the regional office level. 

PSD generally categorizes regulatory and investigative activities as addressing areas of competition, trade 

practices, or financial concerns.

Investigations and regulatory reviews are conducted by agents stationed in a regional office or by resident 

agents. PSD resident agents located in the field are the agency’s frontline staff who work daily with regulated 

entities as well as livestock producers and poultry growers. They are typically the first responders for 

complaints and, because of their daily contact with the industry, primary sources of market intelligence. The

locations of PSD offices and resident agents are shown in Figure 8, Appendix B.

Regulatory reviews are carried out to determine if a regulated entity is complying with the Act and regulations 

and also to help entities achieve compliance. Regional offices initiate regulatory activities based on annual 

business volume of the regulated entity, time elapsed since the last review, information obtained from annual 

reports, or randomly selected as part of the PSD Strategic Business Plan that is used to determine the annual 

industry compliance rate. Examples of regulatory activities include:

• Registering market agencies, dealers, and packer buyers who operate subject to the Act;

• Conducting orientations for new dealers, livestock auctions, and packers;

• Checking the accuracy and repeatability of weighing livestock, carcasses, live poultry, and feed;

• Auditing custodial accounts and payment practices;

• Reviewing marketing practices and determining the adequacy of bond amounts

Regulatory activities also include market-level price monitoring. PSD monitors industry markets using

publicly available data. For example, every week PSD monitors livestock as reported by AMS. PSD also 

analyzes structural changes in the livestock, meat, and poultry industries. These monitoring activities have led

to investigations at individual company levels

PSD initiates an investigation when it has information that a violation of the Act may have occurred. For

example, PSD may initiate an investigation in response to:

• a complaint from an industry participant;

• finding of possible violations during a routine regulatory activity;

• self-reported violations on annual and special reports filed with PSD;

• possible violations found through other monitoring activities; and

• a need for followup on previously identified violations of the Act. 

When investigating failures to pay for livestock, PSD assists producers with filing bond and trust claims 

where applicable

Stakeholders in the livestock and poultry industries and the public may report complaints in one of three ways

They may call the PSD hotline at (833) 342-5773 (DIAL PSD), they can call any of the regional offices to discuss 

their concerns, or they can send an e-mail to PSDComplaints@usda.gov. If desired, complainants may register thei

concerns anonymously. PSD responds to all of these external contact

22
Packers and Stockyards Division Annual Report 2020

PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

PSD sees a range of outcomes from its investigative and regulatory activities. PSD agents frequently find 

minor violations or none at all. The regional offices often attempt to achieve informal compliance of minor 

violations by asking regulated entities to take immediate corrective action

When agents uncover violations that are more serious, the regional office typically issues a Notice of Violation 

as a first step. If the regulated entity fails to correct the identified violations, the regional office generally refers 

a formal investigative case file to the Enforcement Branch (EB) with a recommendation for more formal 

enforcement. The EB may stipulate5 the violation(s) with the entity to resolve the violations. Alternatively, i

may pursue administrative enforcement through USDA’s OGC before a USDA Administrative Law Judge or 

through the DOJ in Federal court

Administrative enforcements6 may result in a civil penalty against the regulated entity, suspension of the 

entity’s Packers and Stockyards registration, both a fine and suspension, and an order to cease and desist from 

repeating the violation(s). In FY 2020, 18 entities stipulated to penalties totaling $122,700. Administrative

Law Judges levied $653,256 in penalties and Federal courts imposed $10,000 in fines, for a total of $785,956 

in civil penalties (Table 9), a slight decline from the the prior year. There are many factors determining the

number of enforcement actions and penalties. Industry compliance rates vary over time and may be influenced 

by external factors such as general economic conditions and livestock prices. Penalties are dependent on the

type and severity of the violations and the regulated entity’s ability to pay and stay in business

5A stipulation is a legal agreement citing violation(s) found, and the civil penalty amount PSD will accept in settlement without pursuing a formal action. In signing

the stipulation agreement, respondents agree to pay the civil penalty and waive their right to a hearing

6 Administrative enforcement is legal action taken within USDA. A complaint alleging specific violations is filed against a firm or individual. The accused party has a 

right to a hearing before an administrative law judge. The judge's decision may be appealed to the USDA Judicial Officer. The accused party may appeal the Judicial 

Officer's ruling to a U.S. Appeals Court, and further to the Supreme Court of the United States.

Table 9. Penalties Levied for Packers and Stockyards Act Violations 

2016–2020

Type Judgment 2016 2017 2018 2019 2020

Stipulations $155,425 $128,575 $77,725 $83,255 $122,700

Administrative Penalties $128,900 $489,950 $154,000 $697,320 $653,256

Department of Justice Civil 

Penalties

$74,468 $128,950 $145,950 $16,862 $10,000

Total Penalties $358,793 $747,475 $377,675 $797,437 $785,956

Suspensions 7 5 11 9 19

23 PSD Investigation and Enforcement Activities
Packers and Stockyards Division Annual Report 2020

 PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

ENFORCING BUSINESS PRACTICE PROVISIONS

The regional offices are responsible for conducting regulatory reviews and investigations of trade practice 

provisions of the Act, collectively referred to as business practice provisions. The regional offices investigate 

alleged unfair and deceptive trade practices by market agencies, livestock dealers and commission buyers, 

packers, and live poultry dealers

Resident agents and resident auditors conduct investigations and regulatory activities from field locations 

throughout the region. Marketing specialists conduct trade practice investigations and regulatory actions related 

to inaccurate scales or carcass evaluation instruments, improper weighing practices, and compliance with 

contracts

Competition

In FY 2019, PSD re-established a Competition Branch staffed with economists. PSD investigates complaints 

alleging anti-competitive behavior such as collusion, price fixing, failure to compete, buyers acting in concert to 

purchase livestock, apportionment of territory, price discrimination, price manipulation, and predatory pricing

PSD’s economists, legal specialists, and investigative attorneys collaborate with USDA’s OGC on competition 

investigations. When the results of an investigation, the evidence, and circumstances support legal action, PSD 

formally refers the case file to OGC for enforcement. OGC further refers some cases to DOJ.

PSD monitors changes in industry behavior in order to understand the nature of and reasons for changes, and 

to anticipate potential competition issues that may result from those changes. PSD also conducts economic

analysis of significant industry events, including mergers, acquisitions, and plant closings. PSD interacts 

with DOJ and the Commodity Futures Trading Commission (CFTC) on competition investigations and when 

analyzing mergers and acquisitions

Fed Cattle and Hog Market Price Monitoring

PSD’s fed cattle market price monitoring program includes a weekly internal reporting protocol based on 

statistical models for the fed cattle markets. The statistical model relies on publicly reported price data to assess

regional prices. The hog price monitoring program was suspended in FY 2019 as reported negotiated prices in

regional markets were no longer adequate and made price monitoring impractical. PSD is currently looking into

alternatives for its hog price monitoring program

24
Packers and Stockyards Division Annual Report 2020

PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

Poultry Contract Compliance Review Process

Poultry is almost exclusively grown under production contracts. Under a production contract, the live poultry

dealer provides the poultry grower with many inputs including the live chicks, feed, and medications. The

poultry grower provides the housing, equipment, labor, and fuel to grow the birds to a target weight established 

in the production contract. Once the birds meet the target slaughter weight, the live poultry dealer picks up the

birds for slaughter. The payment to the poultry grower for the growing services is often determined by a poultry

grower ranking system (commonly referred to as a tournament) outlined in the production contract

PSD regularly conducts poultry contract reviews to examine poultry contracts and payment practices for 

consistency and compliance with the Act and regulations. PSD generally selects a sample of payment data from

the live poultry dealer's records for a detailed review for accuracy and completeness and compares the results 

to the integrator’s ranking sheets, settlement sheets, and payments to ensure adherence to the contract

In FY 2020, PSD conducted over 100 poultry contract compliance reviews, including 41 that were 

conducted pursuant to a Strategic Business Plan random sample and included as a component of PSD’s 

performance measure (see Packers and Stockyards Division's Performance and Efficiency section).

If PSD uncovers discrepancies, it opens an investigation. If PSD does not find evidence of a violation, the 

review is closed with a finding that the live poultry dealer is in compliance.

Trade Practices

PSD reviews the activities of regulated entities to ensure that packers, market agencies, livestock dealers, swine 

contractors, and live poultry dealers do not engage in unfair or deceptive practices in the procurement and 

marketing of livestock, meat, and poultry

Regulated entities that own or use a scale for the purchase, sale, or payment for livestock or poultry are 

required to file scale test reports as evidence of scale accuracy, but PSD also examines scales and weighing 

practices. PSD also evaluates the accuracy and use of electronic carcass evaluation devices when the equipment

is used to determine payment for livestock

Entities that furnish stockyard services in commerce, i.e., services at a stockyard in connection with th

receiving, buying, selling, marketing, feeding, watering, holding, delivery, shipment, weighing, or handling 

of livestock, are required to post a notice that informs the public that the stockyard meets the definition of a 

stockyard under the Act. Once posted, the stockyard remains posted until PSD de-posts it through public notic

25
Packers and Stockyards Division Annual Report 2020

 PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

Historically, several commission firms marketed livestock at the terminal stockyards, but most of these facilities 

are no longer operating. Today, nearly all of the posted stockyards are local livestock auctions. Internet an

video auctions that hold livestock sales over the internet or through a video platform are subject to the Act and 

regulations, even if they do not operate at a posted stockyard

PSD meets with new auction owners and managers, ideally before they begin operations, to ensure that 

operators understand their responsibilities under the Act and regulations. Visits in the early stages of operation

also serve to protect livestock producers who rely on the livestock auction to provide a nondiscriminatory and 

competitive marketplace

PSD reviews procurement practices of packers to determine if they have engaged in unfair or deceptive trade 

activities or have provided undue or unreasonable advantages in procuring livestock or poultry. The reviews

assess procurement and pricing methods, payment practices, and weighing of livestock and carcasses

 Anyone who believes that an action or omission of a stockyard, market agency, or dealer caused 

personal loss or damage in violation of the Act may file a complaint seeking reparation (damages) 

with PSD within 90 days of learning of the action that caused damages

26
Packers and Stockyards Division Annual Report 2020

PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

A transaction made on false or inaccurate weights, including instances in which a livestock auction, livestock 

dealer, packer, or live poultry dealer modifies the actual weight of the livestock or fails to pass on a shrink 

allowance, is an unfair and deceptive practice. PSD regulations require livestock auctions, dealers, packers and

live poultry dealers to test scales used for the purposes of determining payment two times per year, with one 

test in the first 6 months and one test in the second 6 months, and to file scale-test reports as evidence of scale 

maintenance and accuracy. State or local governments and private companies provide scale test service

PSD inspects the scales used by livestock auctions, dealers, live poultry dealers and packers for weighing live 

animals. PSD also inspects hopper scales for weighing poultry feed. It tests static and dynamic monorail scale

used to weigh livestock carcasses in slaughter plants and also conducts feed weighing inspections on truck 

scales and hopper scales at feed mills

In addition, PSD conducts several types of regulatory and investigative inspections to ensure scale operators 

and entities subject to the Act are using their scales properly and recording weights accurately in the purchase 

and sale of livestock and for payments to hog and poultry contract growers. These inspections include check

weighing to assure repeatability of weight. The types and number of weighing inspections conducted by PSD

and violations from 2016 to 2020 appear in Table 10. In 2020, out of 736 inspections conducted, PSD agents 

found a total of 89 violations, an 88-percent compliance rate.

Table 10. Weighing Inspections and Violations, 2016–2020

Type 2016 2017 2018 2019 2020

Inspections

Livestock Auctions 391 294 300 305 275

Dealers 253 241 301 278 202

Packers 143 138 159 155 138

Poultry 110 108 98 88 74

Feed 88 83 68 43 47

Total 985 864 926 869 736

Violations

Livestock Auctions 134 56 59 32 22

Dealers 56 30 34 37 15

Packers 39 37 43 41 33

Poultry 21 14 16 14 15

Feed 15 17 5 4 4

Total 265 154 157 128 89

27
Packers and Stockyards Division Annual Report 2020

PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

ENFORCING FINANCIAL PROVISIONS

The financial provisions of the Act and regulations support the financial integrity of regulated entities and foster 

liquidity in markets for livestock, meat, and poultry. PSD enforces these provisions through several activities

that include onsite financial compliance reviews and investigations and reviewing annual and special reports 

submitted by regulated entities. Financial compliance reviews and investigations address five issues. These 

issues include maintenance of custodial accounts, solvency, payment to livestock sellers and poultry growers, 

bond claims, and trust claims

Under the Act, livestock dealers, market agencies, and packers are required to be solvent, i.e., current asset

must exceed current liabilities. PSD monitors solvency by conducting onsite financial compliance reviews. 

PSD also monitors solvency by reviewing financial data in annual and special reports filed by regulated entities. 

PSD requires special reports from entities whose annual reports disclose insolvencies. If PSD determines

that an entity is insolvent, it notifies the entity that it must correct the insolvency immediately. In addition, 

PSD conducts onsite financial investigations. These investigations confirm whether entities correctly reported 

insolvencies. The investigations also confirm whether entities resolved other financial issues. PSD initiates 

formal disciplinary action when appropriate

Market agencies selling livestock on commission, such as local livestock auctions and video and internet 

auctions, are required by the Act and regulations to establish and maintain a bank account designated as 

“custodial account for shippers’ proceeds.” This account is a trust account which holds in trust proceeds from

the sale of consigned livestock for the benefit of livestock sellers. The market agency selling on commission 

acts as a fiduciary depositor to the account. 

PSD monitors custodial accounts in several ways. It reviews annual and special custodial account reports from

market agencies and conducts onsite custodial account audits. When the reviews reveal custodial account 

shortages, PSD acts to have the livestock auction bring the account into balance by issuing a Notice of 

Violation or preparing for a formal enforcement. Table 11 shows the number of custodial reviews conducted

by PSD in the past 5 years, the number of violations found, and the value of shortages corrected by market 

agencies because of the intervention by PSD

PSD conducted 410 custodial reviews in 2020 and found 141 violations. The number of violations increased

slightly from the prior year, and the dollar value of shortage corrections also increased to over $3.8 million.

Table 11. Number of Custodial Account Reviews, Violations 

Found, and Shortages Corrected, 2016–2020

Year Reviews Account 

Violations

Shortage 

Corrections 

2016 453 204 $3,317,866

2017 417 193 $1,668,901

2018 420 170 $1,577,974

2019 409 137 $3,573,403

2020 410 141 $3,813,221

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Packers and Stockyards Division Annual Report 2020

 PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

Bond Protections for Unpaid Livestock Sellers

All market agencies, livestock dealers, and packers purchasing over $500,000 of livestock annually must file 

and maintain bonds or bond equivalents for the protection of livestock sellers. The bonds are for the benefit of 

unpaid livestock sellers should a regulated entity fail to pay for livestock. Those required to meet the bonding

requirement may choose from three options to comply

They may obtain a surety bond or, in lieu of a surety bond, they may pledge one or more savings accounts or 

certificates of deposit under a Trust Fund Agreement. Alternatively, they may obtain one or more irrevocable, 

transferable, standby letter(s) of credit, issued by a federally insured bank or institution, and pledge the 

letter(s) of credit to a Trust Agreement. They may use a combination of these options to meet the total bond

requirement

To be eligible to receive payment under the bond, a livestock seller who does not receive payment for a 

transaction must file a bond claim within 60 days of the transaction. The seller may obtain claim forms from 

PSD regional offices or at https://www.ams.usda.gov/resources/bond-bond-equivalent-and-claim-forms.

The seller must file a completed claim form, accompanied by supporting documents, with PSD or the surety 

company. PSD analyzes each claim to determine whether the claimant filed it timely and whether the claimant 

provided adequate documentation to support the claim. PSD provides its analysis to the principal and to the

bond surety or trustee on a bond equivalent. The surety or the trustee decides whether claims are valid and

timely filed and how much will be paid.

When circumstances warrant, PSD immediately deploys a rapid response team to conduct 

an investigation for potentially serious financial situations that may cause imminent and 

irreparable harm to livestock producers

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Packers and Stockyards Division Annual Report 2020

PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

Bonds often do not cover the entire loss sustained when a firm fails to make full payment. In that case, the 

claimant(s) receives a pro-rata share of the bond based on the value of the bond and the total amount of the 

valid, timely claims.

The dollar amount of total claims on dealer bonds often varies significantly from the dollar amount of valid 

claims. This is because sellers frequently file claims beyond the 60 days after the transaction took place and, 

in this circumstance, the surety may deny the claim. Over the past 5 years, the total dollar amount of valid

claims decreased from $11.3 million in 2016 to over $1 million in 2020. 

Table 12. Dealer Bond Claims and Recovery, 2016–2020

Year 

Opened

Total 

Claims

Valid 

Claims

Year 

Closed Bond Other Total Recovered

2016 $11,466,498 $11,331,648 2016 $618,839 $273,947 $892,786

2017 $690,000 $0 $690,000

2017 $1,028,459 $752,707 2017 $136,803 $0 $136,803

2018 $153,331 $151,813 $305,144

2018 $5,139,226 $3,710,515 2018 $420,000 $1,264,830 $1,684,830

2019 $81,032 $165,000 $246,032

2019 $1,329,822 $477,524 2019 $118,994 $54,729 $173,723

2020 $77,353 $3,335 $80,688

2020 $1,146,789 $1,001,257 2020 $311,284 $200 $311,484

All years are fiscal years ending September 30. Year closed corresponds to date of recovery.

7

In all bond claim tables, total claims are computed for the fiscal year in which the claim was opened. Bond claims are not always closed in the same fiscal year 

they were first opened and recoveries for claims are recorded in the year the claims were closed. Claims that are withdrawn are not included in any of the totals. 

30
Packers and Stockyards Division Annual Report 2020

 PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

Total claims against livestock auctions decreased from less than $400,000 in 2016 to less than $100,000 in 

2018 (Table 13). In 2019, timely filed valid bond claims increased to $2.1 million but in 2020 valid claims 

declined to over $43,000.

Table 13. Livestock Auction Bond Claims and Recovery, 2016–2020

Year 

Opened

Total 

Claims

Valid 

Claims

Year 

Closed Bond Other Total Recovered

2016 $397,946 $397,946 2016 $0 $0 $0 

2017 $441,433 $197,913 2017 $143,468 $639 $144,107 

2018 $165,099 $80,052 2018 $72,359 $1,619 $73,978

2019 $114 $0 $114

2019 $2,700,707 $2,108,679 2019 $9,217 $37,016 $46,233 

2020 $224,220 $1,909,808 $2,134,028 

2020 $58,174 $43,339 2020 $40,805 $2,534 $43,339

All years are fiscal years ending September 30. Year closed corresponds to date of recovery.

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Packers and Stockyards Division Annual Report 2020

PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

As discussed earlier, the Act authorizes unpaid livestock sellers to claim against packer trust assets. The trust 

provides additional protection above that of any bond held by the packer. The vast majority of the packer bond 

and trust claims completed from 2017 to 2019 are the result of claims filed against Sam Kane Beef Processors, 

LLC, due to its difficulty in paying timely for its cattle purchases. 

Table 14. Packer Bond and Trust Claims and Recovery, 2016–2020

Year 

Opened Total Claims Valid Claims Y ear Closed Bond Trust Other Total 

Recovered

2016 $14,210,690 $14,210,690 2016 $20,000 $14,092,732 $7,259 $14,119,991

2017 $0 $79,564 $0 $79,564

2017 $23,757,904 $23,757,904 2019 $0 $22,722,824 $0 $22,722,824 

2018 $149,259,337 $143,715,875 2018 $525,000 $3,436,237 $552,193 $4,513,430

2019 $4,195,000 $96,155,986 $786,648 $101,137,635

2019 $1,440,425 $1,253,123 2020 $1,141,730 $48,002 $0 $1,189,732

2020 $2,311,428 $2,240,034 2020 $235,000 $1,118,547 $393,080 $1,746,627

 All years are fiscal years ending September 30. Year closed corresponds to date of recovery.

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Packers and Stockyards Division Annual Report 2020

 PSD INVESTIGATION AND ENFORCEMENT ACTIVITIES

Live poultry dealers are not required to maintain bonds, but are covered by a statutory trust. Poultry growers

and live poultry sellers do not file trust claims against live poultry dealers as frequently as livestock sellers, 

and there were no claims filed for several years (Table 15). In 2017, there was full restitution for claims filed 

against poultry dealers, and the poultry trust accounted for all of the reimbursement. From 2018 to 2020, no 

poultry trust claims were filed. 

Table 15. Poultry Trust Claims and Recovery, 2016–2020

Fiscal 

Year

Total 

Claims

Valid 

Claims Trust Other Total Recovered

2016 $0 $0 $0 $0 $0

2017 $82,840 $82,840 $82,840 $0 $82,840

2018 $0 $0 $0 $0 $0

2019 $0 $0 $0 $0 $0

2020 $0 $0 $0 $0 $0

33
Packers and Stockyards Division Annual Report 2020

 PSD PROGRAM PERFORMANCE AND EFFICIENCY

PSD achieves its mission, in part, by identifying broad, strategic, multi-year goals. It also sets shorter term 

tactical annual objectives and activities as set forth in its annual Strategic Business Plan. This section addresses 

how PSD strives to improve its performance and efficiency, and the demonstrated results.

PERFORMANCE MEASUREMENT

PSD assesses its performance annually by measuring industry compliance with the Act and regulations. PSD

performs compliance reviews of a random sample of regulated entities to estimate industry compliance rates in 

the following five areas:

1) Prompt payment by livestock auctions, dealers, and packers;

2) Financial reviews of livestock auction custodial accounts;

3) Scales and weighing practices at livestock auctions, dealers, and live poultry dealers;

4) Static and dynamic monorail scales, carcass evaluation devices, and related practices at livestock 

packing plants purchasing more than 1,000 head per year; and

5) Contract compliance of live poultry dealers with contract poultry growers

PSD analyzes compliance data and general economic conditions. It uses this information to deploy its resources

effectively to meet changing industry conditions. While the overall compliance rate remained at 85 percent 

from FY 2019, the results of the components that comprise the aggregate index were mixed compared to the 

prior year. Weighing practices compliance declined from 100 percent to 85 percent, and carcass evaluation 

compliance also fell, from 87 percent to 83 percent. Poultry contract compliance increased from 83 percent 

to 85 percent, and custodial account compliance improved from 70 percent to 72 percent. Prompt payment 

compliance was unchanged at 89 percent (Figure 5).

Figure 5. Industry Compliance by Component and Average Industry Compliance, 2016–2020 

0

10

20

30

40

50

60

70

80

90

100

2016 2017 2018 2019 2020

Percent in Compliance

Prompt Pay Custodial Audit Weighing Practices

Carcass Evaluation Poultry Contracts Average Industry Compliance

34 PSD Program Performance and Efficiency
Packers and Stockyards Division Annual Report 2020

 PSD PROGRAM PERFORMANCE AND EFFICIENCY

PSD puts emphasis on educational and outreach activities that improve industry compliance. During each

regulatory review or investigation, PSD agents discuss how to achieve compliance with regulated entities

However, economic conditions within the industry affect compliance rates. For example, weak economic 

conditions or highly volatile livestock prices may contribute to lower rates of compliance

EFFICIENCY MEASUREMENT

PSD measures its efficiency at conducting regulatory reviews and investigations by comparing the total 

days between when it opens and closes each type of activity. The following figure shows the total number of 

regulatory reviews conducted by PSD and the average number of days to complete a review (Figure 6).

The average number of days to complete a regulatory activity increased from 13 in 2019 to 15 in 2020 and the 

number of regulatory reviews completed declined to 1,870 from 1,972 in 2019.

Figure 6. Number of Regulatory Reviews and Average Days to Complete a Review, 

2016–2020

0

500

1,000

1,500

2,000

2,500

5

7

9

11

13

15

17

19

21

2016 2017 2018 2019 2020

No. of Regulatory Review

Average Days

Average Days Number of Regulatory Reviews

35
Packers and Stockyards Division Annual Report 2020

 PSD PROGRAM PERFORMANCE AND EFFICIENCY

The total number of investigations completed by PSD in the field and the average number of days to complete 

an investigation appear in Figure 7. PSD considers an investigation complete when it is closed by PSD at the

regional office level, closed by the Enforcemet Branch (EB), or when the formal enforcement action related to 

the investigation has been completed for cases referred to OGC or DOJ

For investigations closed in FY 2020, the average number of days to complete and close an investigation in the 

field declined to 87 days from 104 in FY 2019.

The number of investigations completed in the field increased to 1,860 from 1,776 in FY 2019. PSD completed 

these investigations in several ways. For about 85 percent of cases, PSD found no violations or reached an 

informal agreement to correct minor violations. PSD resolved and closed 11 percent of investigations by

issuing formal Notices of Violation

In the remainder of the investigations, the regional offices submitted formal case files to the EB with a 

recommendation for stipulation or enforcement by OGC or DOJ. If a regulated entity agrees to a stipulation, it

waives its right to a hearing, admits the violation(s), and voluntarily agrees to pay a penalty. PSD then closes

the investigation. Cases referred to OGC or DOJ remain open until OGC or DOJ completes the enforcement

action

Figure 7. Number of Investigations and Average Days to Complete, 

2016–2020

0

500

1,000

1,500

2,000

2,500

20

30

40

50

60

70

80

90

100

110

2016 2017 2018 2019 2020

No

Av

 of Investigations

erage Days

Average Days Number of Investigations

36
Packers and Stockyards Division Annual Report 2020

 APPENDIX A

Data Sources for Tables and Charts:

Table 1 Number of entities registered and/or bonded as recorded in PSD databases

Table 2 Data are from the 2017 and 2012 Census of Agriculture since swine contractors do not file 

reports with PSD

Table 3 Data are compiled from annual reports filed by packers and live poultry dealers with PSD.

Table 4 PSD databases

Table 5 and 

Table 6

Total Value Purchases is the total of livestock purchases reported by packers filing annual 

reports to PSD. Concentration statistics for livestock slaughter (heifers and steers, cows and

bulls, hogs, and sheep and lambs) are compiled from NASS reports on commercial slaughter

Concentration statistics for broiler and turkey slaughter are computed from live poultry dealer 

annual reports filed with PSD.

Table 7 Data are compiled from annual reports filed by packers with PSD.

Table 8 Data are compiled from annual reports filed with PSD by livestock markets selling on 

commission

Table 9 Enforcement data from PSD databases

Table 10 Scales and weighing inspection data from PSD databases

Table 11 Data on custodial account reviews are from PSD databases

Table 12 Data are from bond claims filed with PSD by livestock sellers against livestock dealers.

Table 13 Data are from bond claims filed with PSD by livestock sellers against market agencies.

Table 14 Data are from bond and trust claims filed with PSD by livestock sellers against packer bonds 

and packer trusts

Table 15 Data are from trust claims filed with PSD by live poultry sellers against poultry trusts held by 

live poultry dealers

Figure 1 Dollar value of livestock purchases reported by packers, livestock dealers, and market 

agencies, and livestock sold through market agencies selling on commission, compiled 

from annual reports filed with PSD by packers, livestock dealers and markets selling on 

commission

Figures 2–4 Statistics on types of procurement methods compiled from data reported to USDA's AMS 

under the provisions of the Mandatory Price Reporting Act.

Figure 5 Data on compliance rates from PSD databases. The margin of error in compliance performance

measures in 2020 is (+/-) 7.2% for prompt pay, 9.4% for custodial account, 12.5% for 

weighing practices, 1.5% for carcass evaluation and 11.1% for poultry contract compliance.

Figures 6–7 Data on investigations and regulatory reviews from PSD databases

37 Appendix A - Data Sources
Packers and Stockyards Division Annual Report 2020

 APPENDIX B

Figure 8. PSD Offices and Resident Agent, Resident Auditor, and Market Inspector Locations

38 Appendix B - Field Staff and Office Locations
Packers and Stockyards Division Annual Report 2020

 CONTACTING PSD

To file a complaint, e-mail PSDComplaints@usda.gov, call PSD's hotline at (833) 342-5773, or contact the relevant 

regional office location:

Eastern Regional Office

75 Ted Turner Drive SW, Suite 230 

Atlanta, GA 30303

Telephone (404) 562-5840

FAX (404) 562-5848

E-mail: PSDAtlantaGA@usda.gov 

States Covered:

AL, AR, CT, DC, DE, FL, GA, LA, ME, MA, MD, MS, NH, NJ, NY, NC, PA, RI, SC, TN, VT, VA, WV,

and the Territories of the U.S., including Puerto Ri

Midwestern Regional Office

Room 317, Federal Building, 210 Walnut Street

Des Moines, IA 50309 

Telephone (515) 323-2579

FAX (515) 323-2590

E-mail: PSDDesMoinesIA@usda.gov 

States Covered:

IA, IL, IN, KY, MI, MN, MO, ND, NE, SD, OH, WI

Western Regional Office

One Gateway Centre, 3950 North Lewiston, Suite 200

Aurora, CO 80011 

Telephone (303) 375-4240

FAX (303) 371-4609

E-mail: PSDDenverCO@usda.gov 

States Covered:

AK, AZ, CA, CO, HI, ID, KS, MT, NV, NM, OK, OR, TX, UT, WA, WY

Headquarters Offices:

Office of the Director located in Midwestern Regional Office

Room 917, Federal Building, 210 Walnut Street

Des Moines, IA 50309 

Telephone (515) 323-2579

Enforcement Branch located in Washington, DC

Stop 3601, 1400 Independence Ave., SW 

Washington, DC 20250-3601 

Telephone: (202) 720-7051 

FAX: (202) 205-9237

E-mail: PSDWashingtonDC@usda.gov

Please direct comments or questions about this publication to:

United States Department of Agriculture

Agricultural Marketing Service, Fair Trade Practices Program, Packers and Stockyards Division

1400 Independence Avenue, S.W., Washington, DC 20250-3601

39 Contacting PSD
Packers and Stockyards Division Annual Report 2020

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights 

regulations and policies, the USDA, its Agencies, offices, and employees, and any institution participating in 

or administering USDA programs are prohibited from discriminating based on: race, color, national origin, 

religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, 

family/parental status, income derived from a public assistance program, political beliefs, or reprisal or 

retaliation for prior civil rights activity; in any program or activity conducted or funded by USDA. Remedies 

and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., 

Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's 

TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at 

(800) 877-8339. Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, 

AD-3027, found online at How to File a Program Discrimination Complaint and at any USDA office or write 

to a letter addressed to USDA and provide in the letter all of the information requested in the form. To request 

a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: 

U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, 

S.W., Washington, DC 20250-9410; (2) fax: (202)690-7442; or (3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender. 

Use of commercial and trade names does not imply approval or constitute endorsement by USDA.

December 2021

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