Fair Trade Practices Program 

Packers and Stockyards Division

May 2023

Packers and Stockyards 

Act, 1921
Packers and Stockyards Act, 1921, enacted August 

15, 1921 (42 Stat. 159). Amended and supplemented 

by:

May 5, 1926 (44 Stat.397)

June 7, 1934 (48 Stat. 926)

August 14, 1935 (49 Stat. 648)

August 10, 1939 (53 Stat. 1351)

June 19, 1942 (56 Stat. 372)

July 12, 1943 (57 Stat. 422)

June 25, 1948 (62 Stat. 909 and 991)

May 24, 1949 (63 Stat. 107)

August 28, 1958 (72 Stat. 944, Pub. L. 85-791)

September 2, 1958 (72 Stat. 1749, Pub. L. 85-909)

July 8, 1963 (77 Stat. 79)

July 31, 1968 (82 Stat. 474, Pub. L. 90-446)

September 13, 1976 (90 Stat. 1249, Pub. L. 94-410)

October 2, 1978 (92 Stat. 886, Pub. L. 95-409)

November 23, 1987 (101 Stat. 917, Pub. L. 100-173)

October 13, 1994 (108 Stat. 3178, Pub. L. 103-354)

October 22, 1999 (113 Stat. 1210, Pub. L. 106-78)

November 9, 2000 (114 Stat. 2077, Pub. L. 106-472)

May 12, 2002 (116 Stat. 134, Pub. L. 107-171)

November 2, 2002 (116 Stat. 1921, Pub. L. 107-273)

December 3, 2004 (118 Stat. 2635, Pub. L. 108-444)

October 5, 2006 (120 Stat. 1464, Pub. L. 109-296)

June 18, 2008 (122 Stat. 1651, Pub. L. 110-246)

October 7, 2016 (Pub. L. 114-237)

December 27, 2020 (Pub. L. 116-260)

NOTE: In Pub. L. 101-410 and 104-134, Congress directed 

agencies to update the civil penalties for inflation. Most of the 

civil penalties in this act are amended via 7 CFR 3.91 (last 

updated May 10, 2023). One civil penalty applicable to this Act 

is amended via16 CFR 1.98 by the Federal Trade Commission 

(last updated January 11, 2023). The updated penalties do not 

appear in the Statute. In this booklet we included them in the text 

and with a footnote for easy reference.
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Table of Contents

Contact Information �������������������������������������4

Cross-Reference with United States Code 

(U.S.C.) Sections�����������������������������������������

Packers and Stockyards Act, 1921 �����������11

Title I—Definitions �������������������������������������11

Title II—Packers �����������������������������������������14

Title III—Stockyards and Stockyard Dealers

����������������������������������������������������������������������36

Title IV—General Provisions ��������������������59

Supplements to the Packers and 

Stockyards Act ������������������������������������������83

[7 U.S.C. 204]. Bond and suspension

registrants ��������������������������������������������������83

[7 U.S.C. 229b]. Right to discuss terms

contract ������������������������������������������������������85

Sections of Other Acts Made Applicable to 

the Packers and Stockyards Act ��������������87

The Federal Trade Commission Act 

(Sections 6 and 8 through 10), as approved 

Sept. 26, 1914 ���������������������������������������������8

The Agricultural Marketing Act (Sections 

212, 231 and 251) ���������������������������������������96

Non-Discrimination Policy�����������������������108
Packers and Stockyards Act

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AMS - Fair Trade Practices Program 

Packers and Stockyards Division

Contact Information

Headquarters Office

PSD Headquarters

South Agriculture Building

1400 Independence Ave, SW, Room 2097

Washington, DC 20250-3601

Phone: 202-720-7051 Fax: 202-205-9237

Email: PSDWashingtonDC@usda.gov

Eastern Regional Office

PSD Eastern Regional Office

Richard Russell Building

75 Ted Turner Dr, Suite 230

Atlanta, GA 30303-3308

Phone: 404-562-5840 Fax: 404-562-5848

E-mail: PSDAtlantaGA@usda.gov

Region Includes: Alabama, Arkansas, Connecticut, 

Delaware, Florida, Georgia, Louisiana, Maine, 

Maryland, Massachusetts, Mississippi, New 

Hampshire, New Jersey, New York, North Carolina, 

Pennsylvania, Rhode Island, South Carolina, 

Tennessee, Vermont, Virginia, West Virginia, and U.S. 

Territories
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Midwestern Regional Office

PSD Midwestern Regional Office

Federal Building

210 Walnut Street, Suite 317

Des Moines, IA 50309-2110

Phone: 515-323-2579 Fax: 515-323-2590

E-mail: PSDDesMoinesIA@usda.gov

Region Includes: Illinois, Indiana, Iowa, Kentucky, 

Michigan, Minnesota, Missouri, Nebraska, North 

Dakota, Ohio, South Dakota, and Wisconsin 

Western Regional Office

PSD Western Regional Office

One Gateway Center

3950 North Lewiston Street, Suite 200

Aurora, CO 80011-1556

Phone: 303-375-4240 Fax: 303-371-4609

E-mail: PSDDenverCO@usda.gov

Region Includes: Alaska, Arizona, California, 

Colorado, Hawaii, Idaho, Kansas, Montana, Nevada, 

New Mexico, Oklahoma, Oregon, Texas, Utah, 

Washington, and Wyoming 

Central Reporting Unit (CRU)

PSD Central Reporting Unit

P.O. Box 110639

Aurora, CO 80042

Phone: 303-375-4264 Fax: 314-457-4421

E-mail: PSD-CRU@usda.gov

The CRU mails and processes the annual reports 

required of all firms subject to the Packers and 

Stockyards Act. Please direct all completed annual 

report forms and related inquiries to CRU.
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Cross-Reference with United States Code 

(U.S.C.) Secti

The Packers And Stockyards Act (PSA)

Title I—Definitions

PSA 7 U.S.C. Descript

1 181 Short title

2(a) 182 Definitions

2(b) 183 When transaction 

deemed in commerce; 

“State” defined

Title II—Packers

Part A—General Provisions

PSA 7 U.S.C. Descript

201 191 “Packer” defined

202 192 Unlawful practices 

enumerated

203 193 Procedure before 

Secretary for violations

204 194 Conclusiveness of order; 

appeal and review

205 195 Punishment for violation 

of order

206 196 Statutory trust 

established; livestock

207 197 Statutory trust 

established; poultry

208 197a Production contracts

209 197b Choice of law and venue
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PSA 7 U.S.C. Descript

210 197c Arbitration

Part B—Swine Packer Marketing Contracts

PSA 7 U.S.C. Descript

221 198 Definitions

222 198a Swine packer marketing 

contracts offered to 

producers

223 198b Report on the Secretary’s 

jurisdiction, power, duties, 

and authorities

Title III—Stockyards and Stockyard Dealers

PSA 7 U.S.C. Descript

301 201 “Stockyard owner”; 

“stockyard services”; 

“market agency”; 

“dealer”; defined

302 202 “Stockyard” defined; 

determination by 

Secretary as to particular 

yard

303 203 Activity as stockyard 

dealer or market agency; 

benefits to business and 

welfare of stockyard; 

registration; penalty for 

failure to register
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PSA 7 U.S.C. Descript

304 205 General duty as to 

services; revocation of 

registration

305 206 Rates and charges 

generally; discrimination

306 207 Schedule of rates

307 208 Unreasonable or 

discriminatory practices 

generally; rights of 

stockyard owner of 

management and 

regulation

308 209 Liability to individuals for 

violations; enforcement 

generally

309 210 Proceedings before 

Secretary for violations

310 211 Order of Secretary as 

to charges or practices; 

prescribing rates and 

practice generally

311 212 Prescribing rates and 

practices to prevent 

discrimination between 

intrastate and interstate 

commerce

312 213 Prevention of unfair, 

discriminatory, or 

deceptive practices

313 214 Effective date of orders
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PSA 7 U.S.C. Descript

314 215 Failure to obey orders; 

punishment

315 216 Proceedings to enforce 

orders; injunction

316 217 Proceedings for 

suspension of orders

317 217a Fees for inspection of 

brands or marks

318 217b Statutory Trust 

Established; Dealer

Title IV—General Provisions

PSA 7 U.S.C. Descript

401 221 Accounts and records of 

business; punishment for 

failure to keep

402 222 Federal Trade 

Commission powers 

adopted for enforcement 

of chapter

403 223 Responsibility of 

principal for act or 

omission of agent

404 224 Attorney General 

to institute court 

proceedings for 

enforcement

405 225 Laws unaffected
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PSA 7 U.S.C. Descript

406(a) 226 Powers of Interstate 

Commerce Commission 

unaffected

406(b)-(f) 227 Powers of Federal 

Trade Commission and 

Secretary of Agriculture

407 228 Authority of Secretary

408 228a Authority of Secretary 

to request temporary 

injunction or restraining 

order

409 228b Prompt payment for 

purchase of livestock

410 228b-1 Final date for making 

payment to cash seller or 

poultry grower

411 228b-2 Violations by live poultry 

dealers

412 228b-3 Judicial review of order 

regarding live poultry 

dealer

413 228b-4 Violation of final order 

by live poultry dealer; 

penalty

414 228c Federal preemption 

of State and local 

requirements

415 228d Annual assessment of 

cattle and hog industries

417 229c Separability
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Packers and Stockyards Act, 1921

Be it enacted by the Senate and House of 

Representatives of the United States of America in 

Congress assembled.

Title I—Definitions 

Section 1 [7 U.S.C. 181]. Short ti

This Act may be cited as the “Packers and Stockyards 

Act, 1921.” 

(Aug. 15, 1921, ch. 64, title I, §1, 42 Stat. 159.) 

Section 2(a) [7 U.S.C. 182]. Definitions 

When used in this Act— 

(1) The term “person” includes individuals, 

partnerships, corporations, and associations; 

(2) The term “Secretary” means the Secretary of 

Agriculture; 

(3) The term “meat food products” means all products 

and byproducts of the slaughtering and meatpacking 

industry—if edible; 

(4) The term “livestock” means cattle, sheep, swine, 

horses, mules, or goats—whether live or dead; 

(5) The term “livestock products” means all products 

and byproducts (other than meats and meat food 

products) of the slaughtering and meat-packing 

industry derived in whole or in part from livestock; 

(6) The term “poultry” means chickens, turkeys, 

ducks, geese, and other domestic fowl; 

(7) The term “poultry product” means any product or 

byproduct of the business of slaughtering poultry and 

processing poultry after slaughter; 
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(8) The term “poultry grower” means any person 

engaged in the business of raising and caring for live 

poultry for slaughter by another, whether the poultry 

is owned by such person or by another, but not an 

employee of the owner of such poultry; 

(9) The term “poultry growing arrangement” means 

any growout contract, marketing agreement, or other 

arrangement under which a poultry grower raises 

and cares for live poultry for delivery, in accord with 

another’s instructions, for slaughter; 

(10) The term “live poultry dealer” means any person 

engaged in the business of obtaining live poultry by 

purchase or under a poultry growing arrangement for 

the purpose of either slaughtering it or selling it for 

slaughter by another, if poultry is obtained by such 

person in commerce, or if poultry obtained by such 

person is sold or shipped in commerce, or if poultry 

products from poultry obtained by such person are 

sold or shipped in commerce; and 

(11) The term “commerce” means commerce between 

any State, Territory, or possession, or the District of 

Columbia, and any place outside thereof; or between 

points within the same State, Territory, or possession, 

or the District of Columbia, but through any place 

outside thereof; or within any Territory or possession, 

or the District of Columbia. 

(12) Swine contractor—The term “swine contractor” 

means any person engaged in the business of 

obtaining swine under a swine production contract for 

the purpose of slaughtering the swine or selling the 

swine for slaughter, if— 

(A) the swine is obtained by the person in commerce; 

or 
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(B) the swine (including products from the swine) 

obtained by the person is sold or shipped in 

commerce. 

(13) Swine production contract—The term “swine 

production contract” means any growout contract or 

other arrangement under which a swine production 

contract grower raises and cares for the swine in 

accordance with the instructions of another person. 

(14) Swine production contract grower—The term 

“swine production contract grower” means any person 

engaged in the business of raising and caring for 

swine in accordance with the instructions of another 

person. 

(Aug. 15, 1921, ch. 64, title I, §2(a), 42 Stat. 159; 

Pub. L. 94–410, §3(c), Sept. 13, 1976, 90 Stat. 1249; 

Pub. L. 100–173, §2, Nov. 23, 1987, 101 Stat. 917; 

Pub. L. 107–171, title X, §10502(a), May 13, 2002, 

116 Stat. 509.) 

Section 2(b) [7 U.S.C. 183]. When transact

deemed in commerce; “State” defined 

For the purpose of this chapter1 (but not in anywise 

limiting the foregoing definition2) a transaction in 

respect to any article shall be considered to be in 

commerce if such article is part of that current of 

commerce usual in the livestock and meat-packing 

industries, whereby livestock, meats, meat food 

products, livestock products, dairy products, poultry, 

poultry products, or eggs, are sent from one State 

with the expectation that they will end their transit, 

after purchase, in another, including, in addition 

1 Packers and Stockyards Act, 1921.

2 Refers to the definition of “commerce” in Section 2(a)(11) [7 

U.S.C. §182]). 
Packers and Stockyards Act

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to cases within the above general description, all 

cases where purchase or sale is either for shipment 

to another State, or for slaughter of livestock within 

the State and the shipment outside the State of 

the products resulting from such slaughter. Articles 

normally in such current of commerce shall not be 

considered out of such current through resort being 

had to any means or device intended to remove 

transactions in respect thereto from the provisions 

of this Act. For the purpose of this section the word 

“State” includes Territory, the District of Columbia, 

possession of the United States, and foreign nation. 

(Aug. 15, 1921, ch. 64, title I, §2(b), 42 Stat. 160; 

Pub. L. 94–410, §3(c), Sept. 13, 1976, 90 Stat. 

1249.)

Title II—Packers 

Subtitle A—General Provisions 

Section 201 [7 U.S.C. 191]. “Packer” defined 

When used in this chapter the term “packer” means 

any person engaged in the business (a) of buying 

livestock in commerce for purposes of slaughter, or 

(b) of manufacturing or preparing meats or meat food 

products for sale or shipment in commerce, or (c) of 

marketing meats, meat food products, or livestock 

products in an unmanufactured form acting as a 

wholesale broker, dealer, or distributor in commerce. 

(Aug. 15, 1921, ch. 64, title II, §201, 42 Stat. 160; 

Pub. L. 94–410, §2, Sept. 13, 1976, 90 Stat. 1249.)
Packers and Stockyards Act

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Section 202 [7 U.S.C. 192]. Unlawful practi

enumerated 

It shall be unlawful for any packer or swine contractor 

with respect to livestock, meats, meat food products, 

or livestock products in unmanufactured form, or for 

any live poultry dealer with respect to live poultry, to: 

(a) Engage in or use any unfair, unjustly 

discriminatory, or deceptive practice or device; or 

(b) Make or give any undue or unreasonable 

preference or advantage to any particular person 

or locality in any respect, or subject any particular 

person or locality to any undue or unreasonable 

prejudice or disadvantage in any respect; or 

(c) Sell or otherwise transfer to or for any other 

packer, swine contractor, or any live poultry dealer, 

or buy or otherwise receive from or for any other 

packer, swine contractor, or any live poultry dealer, 

any article for the purpose or with the effect of 

apportioning the supply between any such persons, 

if such apportionment has the tendency or effect of 

restraining commerce or of creating a monopoly; or 

(d) Sell or otherwise transfer to or for any other 

person, or buy or otherwise receive from or for any 

other person, any article for the purpose or with the 

effect of manipulating or controlling prices, or of 

creating a monopoly in the acquisition of, buying, 

selling, or dealing in, any article, or of restraining 

commerce; or 

(e) Engage in any course of business or do any act 

for the purpose or with the effect of manipulating 

or controlling prices, or of creating a monopoly in 

the acquisition of, buying, selling, or dealing in, any 

article, or of restraining commerce; or 
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(f) Conspire, combine, agree, or arrange with any 

other person (1) to apportion territory for carrying on 

business, or (2) to apportion purchases or sales of 

any article, or (3) to manipulate or control prices; or 

(g) Conspire, combine, agree, or arrange with any 

other person to do, or aid or abet the doing of, any act 

made unlawful by subdivisions (a), (b), (c), (d), or (e). 

(Aug. 15, 1921, ch. 64, title II, §202, 42 Stat. 161; 

Aug. 15, 1921, ch. 64, title V, §503, as added Aug. 

14, 1935, ch. 532, 49 Stat. 649; Pub. L. 85–909, 

§1(1), Sept. 2, 1958, 72 Stat. 1749; Pub. L. 94–410, 

§3(a), Sept. 13, 1976, 90 Stat. 1249; Pub. L. 100–

173, §3, Nov. 23, 1987, 101 Stat. 917; Pub. L. 102–

237, title X, §1008(1), Dec. 13, 1991, 105 Stat. 1898; 

Pub. L. 106–78, title IX, §912, Oct. 22, 1999, 113 

Stat. 1205; Pub. L. 107–171, title X, §10502(b)(1), (2)

(A), May 13, 2002, 116 Stat. 509, 510.) 

Section 203 [7 U.S.C. 193]. Procedure bef

Secretary for violations 

(a) Complaint; hearing; intervention 

Whenever the Secretary has reason to believe 

that any packer or swine contractor has violated or 

is violating any provisions of this subchapter3, he 

shall cause a complaint in writing to be served upon 

the packer or swine contractor, stating his charges 

in that respect, and requiring the packer or swine 

contractor to attend and testify at a hearing at a time 

and place designated therein, at least thirty days 

after the service of such complaint; and at such time 

and place there shall be afforded the packer or swine 

contractor a reasonable opportunity to be informed 

3 Title II of the Packers and Stockyards Act, 1921.
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as to the evidence introduced against him (including 

the right of cross-examination), and to be heard in 

person or by counsel and through witnesses, under 

such regulations as the Secretary may prescribe. Any 

person for good cause shown may on application 

be allowed by the Secretary to intervene in such 

proceeding, and appear in person or by counsel. 

At any time prior to the close of the hearing the 

Secretary may amend the complaint; but in case of 

any amendment adding new charges the hearing 

shall, on the request of the packer or swine contractor, 

be adjourned for a period not exceeding fifteen days. 

(b) Report and order; penalty 

If, after such hearing, the Secretary finds that the 

packer or swine contractor has violated or is violating 

any provisions of this subchapter4 covered by the 

charges, he shall make a report in writing in which 

he shall state his findings as to the facts, and shall 

issue and cause to be served on the packer or swine 

contractor an order requiring such packer or swine 

contractor to cease and desist from continuing such 

violation. The testimony taken at the hearing shall 

be reduced to writing and filed in the records of the 

Department of Agriculture. The Secretary may also 

assess a civil penalty of not more than $33,8965 for 

each such violation. 

In determining the amount of the civil penalty to be 

assessed under this section, the Secretary shall 

4 Title II of the Packers and Stockyards Act, 1921.

5 As required by Pub. L. 101-410 and 104-134, 7 CFR 3.91 

amended the civil penalty in this section from $10,000 to a 

maximum of $33,896 effective for violations occurring after May 

10, 2023.
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consider the gravity of the offense, the size of the 

business involved, and the effect of the penalty on 

the person’s ability to continue in business. If, after 

the lapse of the period allowed for appeal or after the 

affirmance of such penalty, the person against whom 

the civil penalty is assessed fails to pay such penalty, 

the Secretary may refer the matter to the Attorney 

General who may recover such penalty by an action 

in the appropriate district court of the United States. 

(c) Amendment of report or order 

Until the record in such hearing has been filed in a 

court of appeals of the United States, as provided in 

section 204 [7 U.S.C. 194], the Secretary at any time, 

upon such notice and in such manner as he deems 

proper, but only after reasonable opportunity to the 

packer or swine contractor to be heard, may amend or 

set aside the report or order, in whole or in part. 

(d) Service of process 

Complaints, orders, and other processes of the 

Secretary under this section may be served in the 

same manner as provided in 15 U.S.C. 45. 

(Aug. 15, 1921, ch. 64, title II, §203, 42 Stat. 161; 

June 25, 1948, ch. 646, §32(a), 62 Stat. 991; May 

24, 1949, ch. 139, §127, 63 Stat. 107; Pub. L. 

85–791, §6(a), Aug. 28, 1958, 72 Stat. 944; Pub. L. 

94–410, §3 (b), Sept. 13, 1976, 90 Stat. 1249; Pub. 

L. 107–171, title X, §10502(b)(1), May 13, 2002, 116 

Stat. 509.) 
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Section 204 [7 U.S.C. 194]. Conclusiveness

order; appeal and review 

(a) Filing of petition; bond 

An order made under section 203 [7 U.S.C. 193] 

shall be final and conclusive unless within thirty days 

after service the packer or swine contractor appeals 

to the court of appeals for the circuit in which he 

has his principal place of business, by filing with the 

clerk of such court a written petition praying that the 

Secretary’s order be set aside or modified in the 

manner stated in the petition, together with a bond in 

such sum as the court may determine, conditioned 

that such packer or swine contractor will pay the costs 

of the proceedings if the court so directs. 

(b) Filing of record by Secretary 

The clerk of the court shall immediately cause a copy 

of the petition to be delivered to the Secretary, and the 

Secretary shall thereupon file in the court the record in 

such proceedings, as provided in section 2112 of title 

28 [28 U.S.C. 2112]. If before such record is filed the 

Secretary amends or sets aside his report or order, in 

whole or in part, the petitioner may amend the petition 

within such time as the court may determine, on 

notice to the Secretary. 

(c) Temporary injunction 

At any time after such petition is filed, the court, on 

application of the Secretary, may issue a temporary 

injunction, restraining, to the extent it deems proper, 

the packer or swine contractor and his officers, 

directors, agents, and employees, from violating 

any of the provisions of the order pending the final 

determination of the appeal. 
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(d) Evidence 

The evidence so taken or admitted, and filed as 

aforesaid as a part of the record, shall be considered 

by the court as the evidence in the case. 

(e) Action by court 

The court may affirm, modify, or set aside the order of 

the Secretary. 

(f) Additional evidence 

If the court determines that the just and proper 

disposition of the case requires the taking of 

additional evidence, the court shall order the hearing 

to be reopened for the taking of such evidence, in 

such manner and upon such terms and conditions 

as the court may deem proper. The Secretary may 

modify his findings as to the facts, or make new 

findings, by reason of the additional evidence so 

taken, and he shall file such modified or new findings 

and his recommendations, if any, for the modifications 

or setting aside of his order, with the return of such 

additional evidence. 

(g) Injunction 

If the court of appeals affirms or modifies the order of 

the Secretary, its decree shall operate as an injunction 

to restrain the packer or swine contractor, and his 

officers, directors, agents, and employees from 

violating the provisions of such order or such order as 

modified. 

(h) Finality 

The court of appeals shall have jurisdiction, which 

upon the filing of the record with it shall be exclusive, 

to review, and to affirm, set aside, or modify, such 

orders of the Secretary, and the decree of such court 
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shall be final except that it shall be subject to review 

by the Supreme Court of the United States upon 

certiorari, as provided in section 1254 of title 28 [28 

U.S.C. 1254], if such writ is duly applied for within 

sixty days after entry of the decree. The issue of such 

writ shall not operate as a stay of the decree of the 

court of appeals, insofar as such decree operates 

as an injunction unless so ordered by the Supreme 

Court. 

(Aug. 15, 1921, ch. 64, title II, §204, 42 Stat. 162; 

June 7, 1934, ch. 426, 48 Stat. 926; June 25, 1948, 

ch. 646, §32(a), 62 Stat. 991; May 24, 1949, ch. 

139, §127, 63 Stat. 107; Pub. L. 85–791, §6(b), (c), 

Aug. 28, 1958, 72 Stat. 944; Pub. L. 98–620, title IV, 

§402(5), Nov. 8, 1984, 98 Stat. 3357; Pub. L. 107–

171, title X, §10502(b)(1), May 13, 2002, 116 Stat. 

509.) 

Section 205 [7 U.S.C. 195]. Punishment 

violation of order 

Any packer or swine contractor, or any officer, 

director, agent, or employee of a packer or swine 

contractor, who fails to obey any order of the 

Secretary issued under the provisions of section 203 

[7 U.S.C. 193], or such order as modified— 

(1) After the expiration of the time allowed for filing a 

petition in the court of appeals to set aside or modify 

such order, if no such petition has been filed within 

such time; or 

(2) After the expiration of the time allowed for applying 

for a writ of certiorari, if such order, or such order as 

modified, has been sustained by the court of appeals 

and no such writ has been applied for within such 

time; or 
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(3) After such order, or such order as modified, has 

been sustained by the courts as provided in section 

204 [7 U.S.C. 194]; shall on conviction be fined not 

less than $500 nor more than $10,000, or imprisoned 

for not less than six months nor more than five years, 

or both. Each day during which such failure continues 

shall be deemed a separate offense. 

(Aug. 15, 1921, ch. 64, title II, §205, 42 Stat. 163; 

June 25, 1948, ch. 646, §32(a), 62 Stat. 991; May 

24, 1949, ch. 139, §127, 63 Stat. 107; Pub. L. 107–

171, title X, §10502(b)(1), May 13, 2002, 116 Stat. 

509.) 

Section 206 [7 U.S.C. 196]. Statutory tr

established; livestock 

(a) Protection of public interest from inadequate 

financing arrangements 

It is hereby found that a burden on and obstruction 

to commerce in livestock is caused by financing 

arrangements under which packers encumber, give 

lenders security interest in, or place liens on, livestock 

purchased by packers in cash sales, or on inventories 

of or receivables or proceeds from meat, meat food 

products, or livestock products therefrom, when 

payment is not made for the livestock and that such 

arrangements are contrary to the public interest. This 

section is intended to remedy such burden on and 

obstruction to commerce in livestock and protect the 

public interest. 

(b) Livestock, inventories, receivables and proceeds 

held by packer in trust for benefit of unpaid cash 

sellers; time limitations; exempt packers; effect of 

dishonored instruments; preservation of trust benefits 

by seller 
Packers and Stockyards Act

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All livestock purchased by a packer in cash sales, 

and all inventories of, or receivables or proceeds 

from meat, meat food products, or livestock products 

derived therefrom, shall be held by such packer in 

trust for the benefit of all unpaid cash sellers of such 

livestock until full payment has been received by such 

unpaid sellers: Provided, That any packer whose 

average annual purchases do not exceed $500,000 

will be exempt from the provisions of this section. 

Payment shall not be considered to have been made 

if the seller receives a payment instrument which is 

dishonored: Provided, That the unpaid seller shall lose 

the benefit of such trust if, in the event that a payment 

instrument has not been received, within thirty days 

of the final date for making a payment under section 

409 [7 U.S.C. 228b], or within fifteen business days 

after the seller has received notice that the payment 

instrument promptly presented for payment has been 

dishonored, the seller has not preserved his trust 

under this subsection. The trust shall be preserved by 

giving written notice to the packer and by filing such 

notice with the Secretary. 

(c) Definition of cash sale 

For the purpose of this section, a cash sale means 

a sale in which the seller does not expressly extend 

credit to the buyer. 

(Aug. 15, 1921, ch. 64, title II, §206, as added Pub. 

L. 94–410, §8, Sept. 13, 1976, 90 Stat. 1251.) 

Section 207 [7 U.S.C. 197]. Statutory tr

established; poultry 

(a) Protection of public interest from inadequate 

financing arrangements 
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It is hereby found that a burden on and obstruction 

to commerce in poultry is caused by financing 

arrangements under which live poultry dealers 

encumber, give lenders security interest in, or 

place liens on, poultry obtained by such persons 

by purchase in cash sales or by poultry growing 

arrangements, or on inventories of or receivables 

or proceeds from such poultry or poultry products 

therefrom, when payment is not made for the poultry 

and that such financing arrangements are contrary to 

the public interest. This section is intended to remedy 

such burden on and obstruction to commerce in 

poultry and protect the public interest. 

(b) Poultry, inventories, receivables and proceeds 

held by dealer in trust for benefit of unpaid cash 

sellers or poultry growers 

All poultry obtained by a live poultry dealer, by 

purchase in cash sales or by poultry growing 

arrangement, and all inventories of, or receivables 

or proceeds from such poultry or poultry products 

derived therefrom, shall be held by such live poultry 

dealer in trust for the benefit of all unpaid cash sellers 

or poultry growers of such poultry, until full payment 

has been received by such unpaid cash sellers or 

poultry growers, unless such live poultry dealer 

does not have average annual sales of live poultry, 

or average annual value of live poultry obtained 

by purchase or by poultry growing arrangement, in 

excess of $100,000. 

(c) Effect of dishonored instruments 

Payment shall not be considered to have been made 

if the cash seller or poultry grower receives a payment 

instrument which is dishonored. 
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(d) Preservation of trust benefit by seller or poultry 

grower 

The unpaid cash seller or poultry grower shall lose 

the benefit of such trust if, in the event that a payment 

instrument has not been received, within 30 days 

of the final date for making payment under section 

410 [7 U.S.C. 228b–1], or within 15 business days 

after the seller or poultry grower has received notice 

that the payment instrument promptly presented for 

payment has been dishonored, the seller or poultry 

grower has not preserved his trust under this section. 

The trust shall be preserved by giving written notice 

to the live poultry dealer and by filing such notice with 

the Secretary. 

(e) Definition of cash sale 

For the purpose of this section, a cash sale means 

a sale in which the seller does not expressly extend 

credit to the buyer. 

(Aug. 15, 1921, ch. 64, title II, §207, as added Pub. 

L. 100–173, §4, Nov. 23, 1987, 101 Stat. 918.) 

Section 208 [7 U.S.C. 197a]. Production contra

(a) Right of contract producers to cancel production 

contracts 

(1) In general 

A poultry grower or swine production contract grower 

may cancel a poultry growing arrangement or swine 

production contract by mailing a cancellation notice 

to the live poultry dealer or swine contractor not later 

than the later of— 

(A) the date that is 3 business days after the date 

on which the poultry growing arrangement or swine 

production contract is executed; or 
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(B) any cancellation date specified in the poultry 

growing arrangement or swine production contract. 

(2) Disclosure 

A poultry growing arrangement or swine production 

contract shall clearly disclose— 

(A) the right of the poultry grower or swine 

production contract grower to cancel the poultry 

growing arrangement or swine production contract; 

(B) the method by which the poultry grower or 

swine production contract grower may cancel the 

poultry growing arrangement or swine production 

contract; and 

(C) the deadline for canceling the poultry growing 

arrangement or swine production contract. 

(b) Required disclosure of additional capital 

investments in production contracts 

(1) In general 

A poultry growing arrangement or swine production 

contract shall contain on the first page a statement 

identified as “Additional Capital Investments 

Disclosure Statement”, which shall conspicuously 

state that additional large capital investments may 

be required of the poultry grower or swine production 

contract grower during the term of the poultry growing 

arrangement or swine production contract. 

(2) Application 

Paragraph (1) shall apply to any poultry growing 

arrangement or swine production contract entered 
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into, amended, altered, modified, renewed, or 

extended after the date of the enactment of this 

section6. 

(Aug. 15, 1921, ch. 64, title II, §208, as added Pub. 

L. 110–234, title XI, §11005, May 22, 2008, 122 Stat. 

1356, and Pub. L. 110–246, §4(a), title XI, §11005, 

June 18, 2008, 122 Stat. 1664, 2118.) 

Section 209 [7 U.S.C. 197b]. Choice of law 

venue 

(a) Location of forum 

The forum for resolving any dispute among the 

parties to a poultry growing arrangement or swine 

production or marketing contract that arises out of 

the arrangement or contract shall be located in the 

Federal judicial district in which the principle part of 

the performance takes place under the arrangement 

or contract. 

(b) Choice of law 

A poultry growing arrangement or swine production or 

marketing contract may specify which State’s law is to 

apply to issues governed by State law in any dispute 

arising out of the arrangement or contract, except to 

the extent that doing so is prohibited by the law of the 

State in which the principal part of the performance 

takes place under the arrangement or contract. 

(Aug. 15, 1921, ch. 64, title II, §209, as added Pub. 

L. 110–234, title XI, §11005, May 22, 2008, 122 Stat. 

1357, and Pub. L. 110–246, §4(a), title XI, §11005, 

June 18, 2008, 122 Stat. 1664, 2119.) 

6 The date of the enactment of this section, referred to in subsec. 

(b)(2), is the date of enactment of Pub. L. 110–246, which was 

approved June 18, 2008. 
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Section 210 [7 U.S.C. 197c]. Arbitrat

(a) In general 

Any livestock or poultry contract that contains a 

provision requiring the use of arbitration to resolve 

any controversy that may arise under the contract 

shall contain a provision that allows a producer or 

grower, prior to entering the contract, to decline to be 

bound by the arbitration provision. 

(b) Disclosure 

Any livestock or poultry contract that contains a 

provision requiring the use of arbitration shall contain 

terms that conspicuously disclose the right of the 

contract producer or grower, prior to entering the 

contract, to decline the requirement to use arbitration 

to resolve any controversy that may arise under the 

livestock or poultry contract. 

(c) Dispute resolution 

Any contract producer or grower that declines a 

requirement of arbitration pursuant to subsection 

(b) has the right to nonetheless seek to resolve any 

controversy that may arise under the livestock or 

poultry contract, if, after the controversy arises, both 

parties consent in writing to use arbitration to settle 

the controversy. 

(d) Application 

Subsections (a), (b) and (c) shall apply to any contract 

entered into, amended, altered, modified, renewed, or 
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extended after the date of the enactment of the Food, 

Conservation, and Energy Act of 20087. 

(e) Unlawful practice 

Any action by or on behalf of a packer, swine 

contractor, or live poultry dealer that violates this 

section (including any action that has the intent or 

effect of limiting the ability of a producer or grower to 

freely make a choice described in subsection8 (b)) is 

an unlawful practice under this chapter. 

(f) Regulations 

The Secretary shall promulgate regulations to— 

(1) carry out this section; and 

(2) establish criteria that the Secretary will consider in 

determining whether the arbitration process provided 

in a contract provides a meaningful opportunity for the 

grower or producer to participate fully in the arbitration 

process. 

(Aug. 15, 1921, ch. 64, title II, §210, as added Pub. 

L. 110–234, title XI, §11005, May 22, 2008, 122 Stat. 

1357, and Pub. L. 110–246, §4(a), title XI, §11005, 

June 18, 2008, 122 Stat. 1664, 2119.) 

7 The date of the enactment of the Food, Conservation, and 

Energy Act of 2008, referred to in subsec. (d), is the date of 

enactment of Pub. L. 110–246, which was approved June 18, 

2008.

8 Packers and Stockyards Act, 1921.
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Subtitle B—Swine Packer Marketing Contracts9

Section 221 [7 U.S.C. 198]. Definitions10

Except as provided in section 223(a) [7 U.S.C. 

198b(a)], in this subtitle: 

(1) Market 

The term “market” means the sale or disposition of 

swine, pork, or pork products in commerce. 

(2) Packer 

The term “packer” has the meaning given the term in 

section 231 of the Agricultural Marketing Act of 1946 

[7 U.S.C. 1635i]. 

(3) Pork 

The term “pork” means the meat of a porcine animal. 

(4) Pork product 

The term “pork product” means a product or 

byproduct produced or processed in whole or in part 

from pork. 

(5) State 

The term “State” means each of the 50 States. 

(6) Swine 

The term “swine” means a porcine animal raised to 

be a feeder pig, raised for seedstock, or raised for 

slaughter. 

9 Part to terminate Sept. 30, 2020, see section 942 of Pub. L. 

106–78, as amended, set out in a Livestock Mandatory Reporting 

note under 7 U.S.C. 1635. 

10 Section to terminate Sept. 30, 2020, see section 942 of Pub. L. 

106–78, as amended, set out in a Livestock Mandatory Reporting 

note under 7 U.S.C. 1635.
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(7) Type of contract 

The term “type of contract” means the classification 

of contracts or risk management agreements for the 

purchase of swine by— 

(A) the mechanism used to determine the base 

price for swine committed to a packer, grouped 

into practicable classifications by the Secretary 

(including swine or pork market formula purchases, 

other market formula purchases, and other 

purchase arrangements); and 

(B) the presence or absence of an accrual account 

or ledger that must be repaid by the producer or 

packer that receives the benefit of the contract 

pricing mechanism in relation to negotiated prices. 

(8) Other terms 

Except as provided in this subtitle, a term has the 

meaning given the term in section 212 or 231 of the 

Agricultural Marketing Act of 1946 [7 U.S.C. 1635a or 

1635i]. 

(Aug. 15, 1921, ch. 64, title II, §221, as added Pub. 

L. 106–78, title IX, §934(2), Oct. 22, 1999, 113 Stat. 

1208.) 

Section 222 [7 U.S.C. 198a]. Swine pac

marketing contracts offered to producers11

(a) In general 

Subject to the availability of appropriations to carry out 

this section, the Secretary shall establish and maintain 

a library or catalog of each type of contract offered by 

11 Section to terminate Sept. 30, 2020, see section 942 of Pub. L. 

106–78, as amended, set out in a Livestock Mandatory Reporting 

note under 7 U.S.C. 1635. 
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packers to swine producers for the purchase of all or 

part of the producers’ production of swine (including 

swine that are purchased or committed for delivery), 

including all available noncarcass merit premiums. 

(b) Availability 

The Secretary shall make available to swine 

producers and other interested persons information 

on the types of contracts described in subsection (a), 

including notice (on a real-time basis if practicable) of 

the types of contracts that are being offered by each 

individual packer to, and are open to acceptance by, 

producers for the purchase of swine. 

(c) Confidentiality 

The reporting requirements under subsections (a) and 

(b) shall be subject to the confidentiality protections 

provided under section 251 of the Agricultural 

Marketing Act of 1946 [7 U.S.C. 1636]. 

(d) Information collection 

(1) In general 

The Secretary shall— 

(A) obtain (by a filing or other procedure required of 

each individual packer) information indicating what 

types of contracts for the purchase of swine are 

available from each packer; and 

(B) make the information available in a monthly 

report to swine producers and other interested 

persons. 

(2) Contracted swine numbers 

Each packer shall provide, and the Secretary shall 

collect and publish in the monthly report required 

under paragraph (1)(B), information specifying— 
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(A) the types of existing contracts for each packer; 

(B) the provisions contained in each contract that 

provide for expansion in the numbers of swine to 

be delivered under the contract for the following 

6-month and 12-month periods; 

(C) an estimate of the total number of swine 

committed by contract for delivery to all packers 

within the 6-month and 12-month periods following 

the date of the report, reported by reporting region 

and by type of contract; and 

(D) an estimate of the maximum total number of 

swine that potentially could be delivered within 

the 6-month and 12-month periods following the 

date of the report under the provisions described 

in subparagraph (B) that are included in existing 

contracts, reported by reporting region and by type 

of contract. 

(e) Violations 

It shall be unlawful and a violation of this title for 

any packer to willfully fail or refuse to provide to the 

Secretary accurate information required under, or to 

willfully fail or refuse to comply with any requirement 

of, this section. 

(f) Authorization of appropriations 

There are authorized to be appropriated such sums 

as necessary to carry out this section. 

(Aug. 15, 1921, ch. 64, title II, §222, as added Pub. 

L. 106–78, title IX, §934(2), Oct. 22, 1999, 113 Stat. 

1208.) 
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Section 223 [7 U.S.C. 198b]. Report on 

Secretary’s jurisdiction, power, duties, and 

authorities12

(a) Definition of packer 

In this section, the term “packer” has the meaning 

given the term in section 201 of the Packers and 

Stockyards Act, 1921 [7 U.S.C. 191]. 

(b) Report 

Not later than 90 days after October 22, 1999 

(the date of the enactment of this subtitle), the 

Comptroller General of the United States shall 

provide to the Committee on Agriculture of the 

House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate a 

report describing the jurisdiction, powers, duties, and 

authorities of the Secretary that relate to packers and 

other persons involved in procuring, slaughtering, 

or processing swine, pork, or pork products that are 

covered by this Act and other laws, including— 

(1) the Federal Trade Commission Act (15 U.S.C. 41 

et seq.), especially sections 6, 8, 9, and 10 of that Act 

(15 U.S.C. 46, 48, 49, and 50)13; and 

12 Section to terminate Sept. 30, 2020, see section 942 of Pub. L. 

106–78, as amended, set out in a Livestock Mandatory Reporting 

note under 7 U.S.C. 1635. 

13 The Federal Trade Commission Act, referred to in subsec. (b)

(1), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, 

which is classified generally to subchapter I (§41 et seq.) of 

chapter 2 of Title 15, Commerce and Trade. For complete 

classification of this Act to the Code, see 15 U.S.C. 58 and Tables. 
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(2) the Agricultural Marketing Act of 1946 (7 U.S.C. 

1621 et seq.)14. 

(c) Contents 

The Comptroller General shall include in the report an 

analysis of— 

(1) burdens on and obstructions to commerce in 

swine, pork, and pork products by packers, and 

other persons that enter into arrangements with the 

packers, that are contrary to, or do not protect, the 

public interest; 

(2) noncompetitive pricing arrangements between 

or among packers, or other persons involved in the 

processing, distribution, or sale of pork and pork 

products, including arrangements provided for in 

contracts for the purchase of swine; 

(3) the effective monitoring of contracts entered into 

between packers and swine producers; 

(4) investigations that relate to, and affect, the 

disclosure of— 

(A) transactions involved in the business conduct 

and practices of packers; and 

(B) the pricing of swine paid to producers by 

packers and the pricing of products in the pork and 

pork product merchandising chain; 

(5) the adequacy of the authority of the Secretary to 

prevent a packer from unjustly or arbitrarily refusing 

14 The Agricultural Marketing Act of 1946, referred to in subsec. 

(b)(2), is title II of act Aug. 14, 1946, ch. 966, 60 Stat. 1087, as 

amended, which is classified generally to chapter 38 (§1621 et 

seq.) of this title. For complete classification of this Act to the 

Code, see Short Title note set out under 7 U.S.C. 1621 and 

Tables. 
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to offer a producer, or disqualifying a producer from 

eligibility for, a particular contract or type of contract 

for the purchase of swine; and 

(6) the ability of the Secretary to cooperate with and 

enhance the enforcement of actions initiated by 

other Federal departments and agencies, or Federal 

independent agencies, to protect trade and commerce 

in the pork and pork product industries against 

unlawful restraints and monopolies. 

(Aug. 15, 1921, ch. 64, title II, §223, as added Pub. 

L. 106–78, title IX, §934(2), Oct. 22, 1999, 113 Stat. 

1209.) 

Title III—Stockyards and Stockyard Dealers 15

Section 301 [7 U.S.C. 201]. “Stockyard owne

“stockyard services”; “market agency”; “dealer”; 

defined 

In this Act: 

(a) The term “stockyard owner” means any person 

engaged in the business of conducting or operating a 

stockyard. 

(b) The term “stockyard services” means services or 

facilities furnished at a stockyard in connection with 

the receiving, buying, or selling on a commission 

basis or otherwise, marketing, feeding, watering, 

holding, delivery, shipment, weighing, or handling in 

commerce, of livestock. 

15 ADMINISTRATIVE ORDERS REVIEW ACT The court of 

appeals has exclusive jurisdiction respecting final orders of 

Secretary of Agriculture under this Act, except orders issued 

under section 309(e) [7 U.S.C. §210(e)] of this title and this 

section, see section 2342 of Title 28, Judiciary and Judicial 

Procedure.
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(c) The term “market agency” means any person 

engaged in the business of (1) buying or selling in 

commerce livestock on a commission basis or (2) 

furnishing stockyard services. Beginning on the date 

of the enactment of the Clarification of Treatment of 

Electronic Sales of Livestock Act of 201616, such term 

includes any person who engages in the business 

of buying or selling livestock, on a commission or 

other fee basis, through the use of online, video, or 

other electronic methods when handling or providing 

the means to handle receivables or proceeds from 

such buying or selling, so long as such person’s 

annual average of online, video, or electronic sales 

of livestock, on a commission or other fee basis, 

exceeds $250,000. 

(d) The term “dealer” means any person, not a market 

agency, engaged in the business of buying or selling 

in commerce livestock, either on his own account or 

as the employee or agent of the vendor or purchaser. 

(Aug. 15, 1921, ch. 64, title III, §301, 42 Stat. 163; 

Pub. L. 85–909, §2(1), Sept. 2, 1958, 72 Stat. 1750; 

Pub. L. 94–410, §3(c), Sept. 13, 1976, 90 Stat. 1249; 

Pub. L. 114-237, §2, Oct. 7, 2016, 130 Stat. 970.)

Section 302 [7 U.S.C. 202]. “Stockyard” defined; 

determination by Secretary as to particular yard17

16 The Clarification of Treatment of Electronic Sales of Livestock 

Act of 2016 was enacted as Public Law 114-237 on October 7, 

2016.

17 TRANSPORTATION OF LIVESTOCK Pub. L. 85–909, §2(2), 

Sept. 2, 1958, 72 Stat. 1750, provided in part: “That nothing 

herein [this section] shall be deemed a definition of the term 

‘public stockyards’ as used in section 15 (5) of the Interstate 

Commerce Act [former 49 U.S.C. 15(5)]”. 
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(a) When used in this title the term “stockyard” means 

any place, establishment, or facility commonly known 

as stockyards, conducted, operated, or managed 

for profit or nonprofit as a public market for livestock 

producers, feeders, market agencies, and buyers, 

consisting of pens, or other inclosures, and their 

appurtenances, in which live cattle, sheep, swine, 

horses, mules, or goats are received, held, or kept for 

sale or shipment in commerce. 

(b) The Secretary shall from time to time ascertain, 

after such inquiry as he deems necessary, the 

stockyards which come within the foregoing definition, 

and shall give notice thereof to the stockyard owners 

concerned, and give public notice thereof by posting 

copies of such notice in the stockyard, and in such 

other manner as he may determine. After the giving of 

such notice to the stockyard owner and to the public, 

the stockyard shall remain subject to the provisions 

of this subchapter18 until like notice is given by the 

Secretary that such stockyard no longer comes within 

the foregoing definition. 

(Aug. 15, 1921, ch. 64, title III, §302, 42 Stat. 163; 

Pub. L. 85–909, §2(2), Sept. 2, 1958, 72 Stat. 1750; 

Pub. L. 90–446, §1(a), July 31, 1968, 82 Stat. 474.) 

Section 303 [7 U.S.C. 203]. Activity as stocky

dealer or market agency; benefits to business 

and welfare of stockyard; registration; penalty for 

failure to register 

After the expiration of thirty days after the Secretary 

has given public notice that any stockyard is within 

the definition of section 302 [7 U.S.C. 202], by posting 

18 Title III of the Packers and Stockyards Act, 1921.
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copies of such notice in the stockyard, no person shall 

carry on the business of a market agency or dealer at 

such stockyard unless 

(1) the stockyard owner has determined that his 

services will be beneficial to the business and welfare 

of said stockyard, its patrons, and customers, which 

determination shall be made on a basis which is not 

unreasonable or unjustly discriminatory, and has 

given written authorization to such person, and 

(2) he has registered with the Secretary, under such 

rules and regulations as the Secretary may prescribe, 

his name and address, the character of business in 

which he is engaged, and the kinds of stockyards 

services, if any, which he furnishes at such stockyard. 

Every other person operating as a market agency or 

dealer as defined in section 301 [7 U.S.C. 201] of the 

Act may be required to register in such manner as 

the Secretary may prescribe. Whoever violates the 

provisions of this section shall be liable to a penalty 

of not more than $2,311 for each such offense and 

not more than $115 for each day it continues19, 

which shall accrue to the United States and may 

be recovered in a civil action brought by the United 

States. 

(Aug. 15, 1921, ch. 64, title III, §303, 42 Stat. 163; 

Pub. L. 85–909, §2(3), Sept. 2, 1958, 72 Stat. 1750; 

Pub. L. 90–446, §1(b), July 31, 1968, 82 Stat. 474.) 

19 As required by Pub. L. 101-410 and 104-134, 7 CFR 3.91 

amended the civil penalties in this section from $500 to a 

maximum of $2,311 per offense and from $25 to not more than 

$115 for each day the violation continues, effective for violations 

occurring after May 10, 2023.
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Section 304 [7 U.S.C. 205]. General duty as

services; revocation of registration 

All stockyard services furnished pursuant to 

reasonable request made to a stockyard owner or 

market agency at such stockyard shall be reasonable 

and nondiscriminatory and stockyard services which 

are furnished shall not be refused on any basis that 

is unreasonable or unjustly discriminatory: Provided, 

That in any State where the weighing of livestock 

at a stockyard is conducted by a duly authorized 

department or agency of the State, the Secretary, 

upon application of such department or agency, 

may register it as a market agency for the weighing 

of livestock received in such stockyard, and upon 

such registration such department or agency and 

the members thereof shall be amenable to all the 

requirements of this chapter20, and upon failure of 

such department or agency or the members thereof 

to comply with the orders of the Secretary under this 

chapter he is authorized to revoke the registration 

of such department or agency and to enforce such 

revocation as provided in section 315 [7 U.S.C. 216] 

of this Act. 

(Aug. 15, 1921, ch. 64, title III, §304, 42 Stat. 164; 

May 5, 1926, ch. 240, 44 Stat. 397; Pub. L. 90–446, 

§1 (c), July 31, 1968, 82 Stat. 474.) 

Section 305 [7 U.S.C. 206]. Rates and char

generally; discrimination 

All rates or charges made for any stockyard services 

furnished at a stockyard by a stockyard owner 

or market agency shall be just, reasonable, and 

20 Packers and Stockyards Act, 1921.
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nondiscriminatory, and any unjust, unreasonable, 

or discriminatory rate or charge is prohibited and 

declared to be unlawful: Provided, That rates and 

charges based upon percentages of the gross sales 

prices of livestock shall not be prohibited merely 

because they are based upon such percentages 

rather than on a per head basis. 

(Aug. 15, 1921, ch. 64, title III, §305, 42 Stat. 164; 

Pub. L. 95–409, §1(a), Oct. 2, 1978, 92 Stat. 886.) 

Section 306 [7 U.S.C. 207]. Schedule of ra

(a) Filing; public inspection 

Within sixty days after the Secretary has given 

public notice that a stockyard is within the definition 

of section 302 [7 U.S.C. 202], by posting copies of 

such notice in the stockyard, the stockyard owner 

and every market agency at such stockyard shall file 

with the Secretary, and print and keep open to public 

inspection at the stockyard, schedules showing all 

rates and charges for the stockyard services furnished 

by such person at such stockyard. If a market agency 

commences business at the stockyard after the 

expiration of such sixty days such schedules must be 

filed before any stockyard services are furnished. 

(b) Detail required; form 

Such schedules shall plainly state all such rates and 

charges in such detail as the Secretary may require, 

and shall also state any rules or regulations which in 

any manner change, affect, or determine any part or 

the aggregate of such rates or charges, or the value 

of the stockyard services furnished. The Secretary 

may determine and prescribe the form and manner in 

which such schedules shall be prepared, arranged, 

and posted, and may from time to time make 
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such changes in respect thereto as may be found 

expedient. 

(c) Changes 

No changes shall be made in the rates or charges 

so filed and published, except after ten days’ notice 

to the Secretary and to the public filed and published 

as aforesaid, which shall plainly state the changes 

proposed to be made and the time such changes will 

go into effect; but the Secretary may, for good cause 

shown, allow changes on less than ten days’ notice, 

or modify the requirements of this section in respect 

to publishing, posting, and filing of schedules, either in 

particular instances or by a general order applicable 

to special or peculiar circumstances or conditions. 

(d) Rejection by Secretary 

The Secretary may reject and refuse to file any 

schedule tendered for filing which does not provide 

and give lawful notice of its effective date, and any 

schedule so rejected by the Secretary shall be void 

and its use shall be unlawful. 

(e) Determination of lawfulness; hearing; suspension 

Whenever there is filed with the Secretary any 

schedule, stating a new rate or charge, or a new 

regulation or practice affecting any rate or charge, 

the Secretary may either upon complaint or upon 

his own initiative without complaint, at once, and 

if he so orders without answer or other formal 

pleading by the person filing such schedule, but upon 

reasonable notice, enter upon a hearing concerning 

the lawfulness of such rate, charge, regulation, or 

practice, and pending such hearing and decision 

thereon the Secretary, upon filing with such schedule 

and delivering to the person filing it a statement in 
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writing of his reasons for such suspension, may 

suspend the operation of such schedule and defer 

the use of such rate, charge, regulation, or practice, 

but not for a longer period than thirty days beyond the 

time when it would otherwise go into effect; and after 

full hearing, whether completed before or after the 

rate, charge, regulation, or practice goes into effect, 

the Secretary may make such order with reference 

thereto as would be proper in a proceeding initiated 

after it had become effective. If any such hearing 

cannot be concluded within the period of suspension 

the Secretary may extend the time of suspension 

for a further period not exceeding thirty days, and 

if the proceeding has not been concluded and an 

order made at the expiration of such thirty days, 

the proposed change of rate, charge, regulation, or 

practice shall go into effect at the end of such period. 

(f) Suspension of operations; compliance 

After the expiration of the sixty days referred to in 

subsection (a) no person shall carry on the business 

of a stockyard owner or market agency unless the 

rates and charges for the stockyard services furnished 

at the stockyard have been filed and published in 

accordance with this section and the orders of the 

Secretary made thereunder; nor charge, demand, or 

collect a greater or less or different compensation for 

such services than the rates and charges specified 

in the schedules filed and in effect at the time; nor 

refund or remit in any manner any portion of the rates 

or charges so specified (but this shall not prohibit a 

cooperative association of producers from bona fide 

returning to its members, on a patronage basis, its 

excess earnings on their livestock, subject to such 

regulations as the Secretary may prescribe); nor 
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extend to any person at such stockyard any stockyard 

services except such as are specified in such 

schedules. 

(g) Penalty 

Whoever fails to comply with the provisions of this 

section or of any regulation or order of the Secretary 

made thereunder shall be liable to a penalty of 

not more than $2,312 for each such offense, and 

not more than $115 for each day it continues21, 

which shall accrue to the United States and may 

be recovered in a civil action brought by the United 

States. 

(h) Intentional violations; penalty 

Whoever willfully fails to comply with the provisions 

of this section or of any regulation or order of the 

Secretary made thereunder shall on conviction be 

fined not more than $1,000, or imprisoned not more 

than one year, or both. 

(Aug. 15, 1921, ch. 64, title III, §306, 42 Stat. 164; 

Pub. L. 94–410, §3(c), Sept. 13, 1976, 90 Stat. 

1249.) 

Section 307 [7 U.S.C. 208]. Unreasonable

discriminatory practices generally; rights of 

stockyard owner of management and regulation 

(a) It shall be the duty of every stockyard owner and 

market agency to establish, observe, and enforce 

just, reasonable, and nondiscriminatory regulations 

21 As required by Pub. L. 101-410 and 104-134, 7 CFR 3.91 

amended the civil penalties in this section from $500 to a 

maximum of $2,312 per offense and from $25 to not more than 

$115 for each day the violation continues, effective for violations 

occurring after May 10, 2023.
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and practices in respect to the furnishing of stockyard 

services, and every unjust, unreasonable, or 

discriminatory regulation or practice is prohibited and 

declared to be unlawful. 

(b) It shall be the responsibility and right of every 

stockyard owner to manage and regulate his 

stockyard in a just, reasonable, and nondiscriminatory 

manner, to prescribe rules and regulations and to 

require those persons engaging in or attempting 

to engage in the purchase, sale, or solicitation of 

livestock at such stockyard to conduct their operations 

in a manner which will foster, preserve, or insure an 

efficient, competitive public market. Such rules and 

regulations shall not prevent a registered market 

agency or dealer from rendering service on other 

markets or in occasional and incidental off-market 

transactions. 

(Aug. 15, 1921, ch. 64, title III, §307, 42 Stat. 165; 

Pub. L. 90–446, §1(d), July 31, 1968, 82 Stat. 475.) 

Section 308 [7 U.S.C. 209]. Liability to individu

for violations; enforcement generally 

(a) If any person subject to this chapter22 violates any 

of the provisions of this chapter, or of any order of the 

Secretary under this chapter, relating to the purchase, 

sale, or handling of livestock, the purchase or sale of 

poultry, or relating to any poultry growing arrangement 

or swine production contract, he shall be liable to the 

person or persons injured thereby for the full amount 

of damages sustained in consequence of such 

violation. 

(b) Such liability may be enforced either (1) by 

complaint to the Secretary as provided in section 

22 Packers and Stockyards Act, 1921.
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309 [7 U.S.C. 210], or (2) by suit in any district court 

of the United States of competent jurisdiction; but 

this section shall not in any way abridge or alter the 

remedies now existing at common law or by statute, 

but the provisions of this chapter are in addition to 

such remedies. 

(Aug. 15, 1921, ch. 64, title III, §308, 42 Stat. 165; 

Pub. L. 94–410, §6, Sept. 13, 1976, 90 Stat. 1250; 

Pub. L. 100–173, §5, Nov. 23, 1987, 101 Stat. 918; 

Pub. L. 107–171, title X, §10502(b)(2)(B), May 13, 

2002, 116 Stat. 510.) 

Section 309 [7 U.S.C. 210]. Proceedings bef

Secretary for violations 

(a) Complaint; response; satisfaction or investigation 

Any person complaining of anything done or omitted 

to be done by any stockyard owner, market agency, 

or dealer (hereinafter in this section referred to as 

the “defendant”) in violation of the provisions of this 

subchapter23, or of an order of the Secretary made 

under this subchapter, may, at any time within ninety 

days after the cause of action accrues, apply to the 

Secretary by petition which shall briefly state the 

facts, whereupon the complaint thus made shall be 

forwarded by the Secretary to the defendant, who 

shall be called upon to satisfy the complaint, or to 

23 The phrase “this subchapter,” currently used twice by the 

U.S.C. in the first sentence of Section 309 (7 U.S.C. 210), did 

not appear in the original statute. The original law referenced 

the provisions “of 304, 305, 306, or 307,” or of an order of the 

Secretary made under “this title.” However, judicial precedent 

supports the broader interpretation reflected by the use of “this 

subchapter” in the U.S.C., which means Title III of the Packers 

and Stockyards Act, 1921.
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answer it in writing, within a reasonable time to be 

specified by the Secretary. If the defendant within 

the time specified makes reparation for the injury 

alleged to be done he shall be relieved of liability to 

the complainant only for the particular violation thus 

complained of. If the defendant does not satisfy the 

complaint within the time specified, or there appears 

to be any reasonable ground for investigating the 

complaint, it shall be the duty of the Secretary to 

investigate the matters complained of in such manner 

and by such means as he deems proper. 

(b) Complaints forwarded by agencies of a State or 

Territory 

The Secretary, at the request of the livestock 

commissioner, board of agriculture, or other agency of 

a State or Territory, having jurisdiction over stockyards 

in such State or Territory, shall investigate any 

complaint forwarded by such agency in like manner 

and with the same authority and powers as in the 

case of a complaint made under subsection (a). 

(c) Inquiries instituted by Secretary 

The Secretary may at any time institute an inquiry on 

his own motion, in any case and as to any matter or 

thing concerning which a complaint is authorized to be 

made to or before the Secretary, by any provision of 

this title, or concerning which any question may arise 

under any of the provisions of this title, or relating 

to the enforcement of any of the provisions of this 

title. The Secretary shall have the same power and 

authority to proceed with any inquiry instituted upon 

his own motion as though he had been appealed to by 

petition, including the power to make and enforce any 

order or orders in the case or relating to the matter 

or thing concerning which the inquiry is had, except 
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orders for the payment of money. 

(d) Damage to complainant not required 

No complaint shall at any time be dismissed because 

of the absence of direct damage to the complainant. 

(e) Award and payment of damages 

If after hearing on a complaint the Secretary 

determines that the complainant is entitled to an 

award of damages, the Secretary shall make an order 

directing the defendant to pay to the complainant the 

sum to which he is entitled on or before a day named. 

(f) Enforcement of orders 

If the defendant does not comply with an order for 

the payment of money within the time limit in such 

order, the complainant, or any person for whose 

benefit such order was made, may within one year 

of the date of the order file in the district court of the 

United States for the district in which he resides or 

in which is located the principal place of business of 

the defendant or in any State court having general 

jurisdiction of the parties, a petition setting forth briefly 

the causes for which he claims damages, and the 

order of the Secretary in the premises. Such suit in 

the district court shall proceed in all respects like other 

civil suits for damages except that the findings and 

orders of the Secretary shall be prima facie evidence 

of the facts therein stated, and the petitioner shall not 

be liable for costs in the district court nor for costs 

at any subsequent stage of the proceedings unless 

they accrue upon his appeal. If the petitioner finally 

prevails, he shall be allowed a reasonable attorney’s 

fee to be taxed and collected as a part of the costs of 
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the suit. 

(Aug. 15, 1921, ch. 64, title III, §309, 42 Stat. 165; 

Pub. L. 94–410, §3(c), Sept. 13, 1976, 90 Stat. 

1249.) 

Section 310 [7 U.S.C. 211]. Order of Secretary

to charges or practices; prescribing rates and 

practices generally 

Whenever after full hearing upon a complaint made 

as provided in section 309 [ 7 U.S.C. 210] of this title, 

or after full hearing under an order for investigation 

and hearing made by the Secretary on his own 

initiative, either in extension of any pending complaint 

or without any complaint whatever, the Secretary 

is of the opinion that any rate, charge, regulation, 

or practice of a stockyard owner or market agency, 

for or in connection with the furnishing of stockyard 

services, is or will be violative of section 304, 305, or 

307 [7 U.S.C. 205, 206, or 208], the Secretary— 

(a) May in accordance with the standard set forth in 

section 305 [7 U.S.C. 206] determine and prescribe 

what will be the rate or charge, or rates or charges, to 

be thereafter in such case observed as the maximum 

or minimum or both to be charged, and what 

regulation or practice is or will be just, reasonable, 

and nondiscriminatory to be thereafter followed: 

Provided, That the Secretary shall prescribe the rate 

or charge, or rates or charges, on a percentage or 

per head basis at the election of the stockyard owner 

or market agency, or on any other basis elected by 

the stockyard owner or market agency unless the 

Secretary finds such other basis to be violative of 
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section 305 [7 U.S.C. 206]; and 

(b) May make an order that such owner or operator 

(1) shall cease and desist from such violation to the 

extent to which the Secretary finds that it does or 

will exist; (2) shall not thereafter publish, demand, 

or collect any rate or charge for the furnishing of 

stockyard services other than the rate or charge 

or rates or charges so prescribed; and (3) shall 

conform to and observe the regulation or practice so 

prescribed. 

(Aug. 15, 1921, ch. 64, title III, §310, 42 Stat. 166; 

Aug. 10, 1939, ch. 663, 53 Stat. 1351; Pub. L. 95–

409, §1 (b), Oct. 2, 1978, 92 Stat. 886.) 

Section 311 [7 U.S.C. 212]. Prescribing ra

and practices to prevent discrimination between 

intrastate and interstate commerce 

Whenever in any investigation under the provisions 

of this title, or in any investigation instituted by 

petition of the stockyard owner, market agency, or 

dealer concerned, which petition is authorized to 

be filed, the Secretary after full hearing finds that 

any rate, charge, regulation, or practice of any 

stockyard owner, market agency, or dealer, for or in 

connection with the buying or selling on a commission 

basis or otherwise, receiving, marketing, feeding, 

holding, delivery, shipment, weighing, or handling, 

not in commerce, of livestock, causes any undue or 

unreasonable advantage, prejudice, or preference as 

between persons or localities in intrastate commerce 

in livestock on the one hand and interstate or foreign 

commerce in livestock on the other hand, or any 

undue, unjust, or unreasonable discrimination against 

interstate or foreign commerce in livestock, which is 
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hereby forbidden and declared to be unlawful, the 

Secretary shall prescribe the rate, charge, regulation, 

or practice thereafter to be observed, in such manner 

as, in his judgment, will remove such advantage, 

preference, or discrimination. Such rates, charges, 

regulations, or practices shall be observed while in 

effect by the stockyard owners, market agencies, or 

dealers parties to such proceeding affected thereby, 

the law of any State or the decision or order of any 

State authority to the contrary notwithstanding. 

(Aug. 15, 1921, ch. 64, title III, §311, 42 Stat. 167; 

Pub. L. 85–909, §2(4), Sept. 2, 1958, 72 Stat. 1750; 

Pub. L. 94–410, §3(c), Sept. 13, 1976, 90 Stat. 

1249.) 

Section 312 [7 U.S.C. 213]. Prevention of unfa

discriminatory, or deceptive practices 

(a) It shall be unlawful for any stockyard owner, 

market agency, or dealer to engage in or use any 

unfair, unjustly discriminatory, or deceptive practice 

or device in connection with determining whether 

persons should be authorized to operate at the 

stockyards, or with the receiving, marketing, buying, 

or selling on a commission basis or otherwise, 

feeding, watering, holding, delivery, shipment, 

weighing, or handling of livestock. 

(b) Whenever complaint is made to the Secretary by 

any person, or whenever the Secretary has reason to 

believe, that any stockyard owner, market agency, or 

dealer is violating the provisions of subsection (a), the 

Secretary after notice and full hearing may make an 

order that he shall cease and desist from continuing 
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such violation to the extent that the Secretary finds 

that it does or will exist. The Secretary may also 

assess a civil penalty of not more than $33,89624 for 

each such violation. In determining the amount of the 

civil penalty to be assessed under this section, the 

Secretary shall consider the gravity of the offense, 

the size of the business involved, and the effect of the 

penalty on the person’s ability to continue in business. 

If, after the lapse of the period allowed for appeal 

or after the affirmance of such penalty, the person 

against whom the civil penalty is assessed fails to pay 

such penalty, the Secretary may refer the matter to 

the Attorney General who may recover such penalty 

by an action in the appropriate district court of the 

United States. 

(Aug. 15, 1921, ch. 64, title III, §312, 42 Stat. 167; 

Pub. L. 85–909, §2(5), Sept. 2, 1958, 72 Stat. 1750; 

Pub. L. 90–446, §1(e), July 31, 1968, 82 Stat. 475; 

Pub. L. 94–410, §3, Sept. 13, 1976, 90 Stat. 1249.) 

Section 313 [7 U.S.C. 214]. Effective date of orders 

Except as otherwise provided in this Act all orders 

of the Secretary under this title, other than orders 

for the payment of money, shall take effect within 

such reasonable time, not less than five days, as is 

prescribed in the order, and shall continue in force 

until his further order, or for a specified period of time, 

according as is prescribed in the order, unless such 

order is suspended or modified or set aside by the 

Secretary or is suspended or set aside by a court of 

competent jurisdiction. 

24 As required by Pub. L. 101-410 and 104-134, 7 CFR 3.91 

amended the civil penalty in this section from $10,000 to a 

maximum of $33,896 effective for violations occurring after May 

10, 2023
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(Aug. 15, 1921, ch. 64, title III, §313, 42 Stat. 167.) 

Section 314 [7 U.S.C. 215]. Failure to obey orde

punishment 

(a) Any stockyard owner, market agency, or dealer 

who knowingly fails to obey any order made under 

the provisions of sections 310, 311, or 312 [7 U.S.C. 

211, 212, and 213] shall forfeit to the United States 

the sum of $2,312 for each offense25. Each distinct 

violation shall be a separate offense, and in case of 

a continuing violation each day shall be deemed a 

separate offense. Such forfeiture shall be recoverable 

in a civil suit in the name of the United States. 

(b) It shall be the duty of the various United States 

attorneys, under the direction of the Attorney General, 

to prosecute for the recovery of forfeitures. The costs 

and expense of such prosecution shall be paid out of 

the appropriation for the expenses of the courts of the 

United States. 

(Aug. 15, 1921, ch. 64, title III, §314, 42 Stat. 167; 

June 25, 1948, ch. 646, §1, 62 Stat. 909.) 

Section 315 [7 U.S.C. 216]. Proceedings to enfo

orders; injunction 

If any stockyard owner, market agency, or dealer fails 

to obey any order of the Secretary other than for the 

payment of money while the same is in effect, the 

Secretary, or any party injured thereby, or the United 

States by its Attorney General, may apply to the 

district court for the district in which such person has 

25 As required by Pub. L. 101-410 and 104-134, 7 CFR 3.91 

amended the civil penalty in this section from $500 to a maximum 

of $2,312 for each offense, effective for violations occurring after 

May 10, 2023.
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his principal place of business for the enforcement 

of such order. If after hearing the court determines 

that the order was lawfully made and duly served 

and that such person is in disobedience of the same, 

the court shall enforce obedience to such order by a 

writ of injunction or other proper process, mandatory 

or otherwise, to restrain such person, his officers, 

agents, or representatives from further disobedience 

of such order or to enjoin upon him or them obedience 

to the same. 

(Aug. 15, 1921, ch. 64, title III, §315, 42 Stat. 167.) 

Section 316 [7 U.S.C. 217]. Proceedings 

suspension of orders 

For the purposes of this title, the provisions of all 

laws relating to the suspending or restraining the 

enforcement, operation, or execution of, or the setting 

aside in whole or in part the orders of the Interstate 

Commerce Commission, are made applicable to the 

jurisdiction, powers, and duties of the Secretary in 

enforcing the provisions of this title, and to any person 

subject to the provisions of this title. 

(Aug. 15, 1921, ch. 64, title III, §316, 42 Stat. 168.) 

Section 317 [7 U.S.C. 217a]. Fees for inspection

brands or marks 

(a) Authorization by Secretary; registration as market 

agency 

The Secretary may, upon written application made 

to him, and if he deems it necessary, authorize the 

charging and collection, at any stockyard subject to 

the provisions of this chapter26, by any department or 

26 Packers and Stockyards Act, 1921.
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agency of any State in which branding or marking or 

both branding and marking livestock as a means of 

establishing ownership prevails by custom or statute, 

or by a duly organized livestock association of any 

such State, of a reasonable and nondiscriminatory 

fee for the inspection of brands, marks, and other 

identifying characteristics of livestock originating 

in or shipped from such State, for the purpose of 

determining the ownership of such livestock. No 

charge shall be made under any such authorization 

until the authorized department, agency, or 

association has registered as a market agency. No 

more than one such authorization shall be issued with 

respect to such inspection of livestock originating in 

or shipped from any one State. If more than one such 

application is filed with respect to such inspection 

of livestock originating in or shipped from any one 

State, the Secretary shall issue such authorization 

to the applicant deemed by him best qualified to 

perform the proposed service, on the basis of (1) 

experience, (2) financial responsibility, (3) extent 

and efficiency of organization, (4) possession of 

necessary records, and (5) any other factor relating 

to the ability of the applicant to perform the proposed 

service. The Secretary may receive and consider the 

recommendations of the commissioner, secretary, 

or director of agriculture, or other appropriate officer 

or agency of a State as to the qualifications of any 

applicant in such State. The decision of the Secretary 

as to the applicant best qualified shall be final. 

(b) Applicability of section 

The provisions of this title, relating to the filing, 

publication, approval, modification, and suspension 

of any rate or charge for any stockyard service shall 
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apply with respect to charges authorized to be made 

under this section. 

(c) Collection and payment of charges 

Charges authorized to be made under this section 

shall be collected by the market agency or other 

person receiving and disbursing the funds received 

from the sale of livestock with respect to the 

inspection of which such charge is made, and paid 

by it to the department, agency, or association 

performing such service. 

(d) Revocation of authorization or registration 

The Secretary may, if he deems it to be in the public 

interest, suspend, and after hearing, revoke any 

authorization and registration issued under the 

provisions of this section or any similar authorization 

and registration issued under any other provision 

of law. The order of the Secretary suspending or 

revoking any such authorization and registration shall 

not be subject to review. 

(Aug. 15, 1921, ch. 64, title III, §317, as added June 

19, 1942, ch. 421, 56 Stat. 372.)

Section 318 [7 U.S.C. 217b]. Statutory tr

established; Dealer

(a) ESTABLISHMENT —

(1) IN GENERAL — All livestock purchased by 

a dealer in cash sales and all inventories of, or 

receivables or proceeds from, such livestock shall be 

held by such dealer in trust for the benefit of all unpaid 

cash sellers of such livestock until full payment has 

been received by such unpaid cash sellers.
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(2) EXEMPTION — Any dealer whose average annual 

purchases of livestock do not exceed $100,000 shall 

be exempt from the provisions of this section.

(3) EFFECT OF DISHONORED INSTRUMENTS 

— For purposes of determining full payment under 

paragraph (1), a payment to an unpaid cash seller 

shall not be considered to have been made if the 

unpaid cash seller receives a payment instrument that 

is dishonored.

(b) PRESERVATION OF TRUST — An unpaid cash 

seller shall lose the benefit of a trust under subsection 

(a) if the unpaid cash seller has not preserved the 

trust by giving written notice to the dealer involved 

and filing such notice with the Secretary —

(1) within 30 days of the final date for making a 

payment under section 409 [7 U.S.C. 228b of this title] 

in the event that a payment instrument has not been 

received; or

(2) within 15 business days after the date on which 

the seller receives notice that the payment instrument 

promptly presented for payment has been dishonored.

(c) NOTICE TO LIEN HOLDERS — When a dealer 

receives notice under subsection (b) of the unpaid 

cash seller’s intent to preserve the benefits of the 

trust, the dealer shall, within 15 business days, give 

notice to all persons who have recorded a security 

interest in, or lien on the livestock held in such trust.

(d) CASH SALES DEFINED — For the purpose of this 

section, a cash sale means a sale in which the seller 
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does not expressly extend credit to the buyer.

(e) PURCHASE OF LIVESTOCK SUBJECT TO 

TRUST —

(1) IN GENERAL — A person purchasing livestock 

subject to a dealer trust shall receive good title to the 

livestock if the person receives the livestock —

(A) in exchange for payment of new value; and

(B) in good faith without notice that the transfer is a 

breach of trust.

(2) DISHONORED PAYMENT INSTRUMENT — 

Payment shall not be considered to have been made 

if a payment instrument given in exchange for the 

livestock is dishonored.

(3) TRANSFER IN SATISFACTION OF 

ANTECEDENT DEBT — A transfer of livestock 

subject to a dealer trust is not for value if the transfer 

is in satisfaction of an antecedent debt or to a secured 

party pursuant to a security agreement.

(f) ENFORCEMENT — Whenever the Secretary 

has reason to believe that a dealer subject to this 

section has failed to perform the duties required by 

this section or whenever the Secretary has reason 

to believe that it will be in the best interest of unpaid 

cash sellers, the Secretary shall do one or more of the 

following —

(1) appoint an independent trustee to carry out the 

duties required by this section, preserve trust assets, 

and enforce the trust;

(2) serve as independent trustee, preserve trust 
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assets, and enforce the trust; or

(3) file suit in the United States district court for the 

district in which the dealer resides to enjoin the 

dealer’s failure to perform the duties required by 

this section, preserve trust assets, and to enforce 

the trust. Attorneys employed by the Secretary may, 

with the approval of the Attorney General, represent 

the Secretary in any such suit. Nothing herein shall 

preclude unpaid sellers from filing suit to preserve or 

enforce the trust.

(Aug. 15, 1921, ch. 64, title III, §318, as added Pub. 

L. 116–260, div. N, title VII, §763, Dec. 27, 2020, 134 

Stat. 2114 .)

Title IV27—General Provisions 

Section 401 [7 U.S.C. 221]. Accounts and reco

of business; punishment for failure to keep 

Every packer, any swine contractor, and any live 

poultry dealer, stockyard owner, market agency, 

and dealer shall keep such accounts, records, 

and memoranda as fully and correctly disclose all 

transactions involved in his business, including the 

true ownership of such business by stockholding or 

otherwise. 

Whenever the Secretary finds that the accounts, 

records, and memoranda of any such person do not 

fully and correctly disclose all transactions involved 

in his business, the Secretary may prescribe the 

manner and form in which such accounts, records, 

27 Previous TITLE IV—LIVE POULTRY DEALERS AND 

HANDLERS §§218 to 218d. Repealed. Pub. L. 100–173, §10, 

Nov. 23, 1987, 101 Stat. 922.
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and memoranda shall be kept, and thereafter any 

such person who fails to keep such accounts, records, 

and memoranda in the manner and form prescribed 

or approved by the Secretary shall upon conviction be 

fined not more than $5,000, or imprisoned not more 

than three years, or both. 

(Aug. 15, 1921, ch. 64, title IV, §401, 42 Stat. 168; 

Aug. 15, 1921, ch. 64, title V, §503, as added Aug. 

14, 1935, ch. 532, 49 Stat. 649; Pub. L. 100–173, §6, 

Nov. 23, 1987, 101 Stat. 918; Pub. L. 107–171, title 

X, §10502(b)(2)(C), May 13, 2002, 116 Stat. 510.) 

Section 402 [7 U.S.C. 222]. Federal Tr

Commission powers adopted for enforcement of 

chapter

For the efficient execution of the provisions of this 

chapter28, and in order to provide information for the 

use of Congress, the provisions (including penalties) 

of sections 46 and 48 to 50 of title 15 [15 U.S.C. 

46, 48-50],29 are made applicable to the jurisdiction, 

powers, and duties of the Secretary in enforcing the 

provisions of this chapter and to any person subject 

to the provisions of this chapter, whether or not a 

corporation. The Secretary, in person or by such 

agents as he may designate, may prosecute any 

28 Packers and Stockyards Act, 1921.

29 U.S. Code cites sections 46 and 48 to 50 of title 15. However, 

the Packers and Stockyards Act of 1921 as passed by Congress 

refers specifically to “sections 6, 8, 9, and 10 of the Act entitled 

‘An Act to create a Federal Trade Commission, to define its 

powers and duties, and for other purposes,’ approved Sept. 

26, 1914.” The sections of the Federal Trade Commission Act 

referred to in section 402, and section 411, can be found later in 

this document.
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inquiry necessary to his duties under this chapter30 in 

any part of the United States. 

(Aug. 15, 1921, ch. 64, title IV, §402, 42 Stat. 168; 

Aug. 15, 1921, ch. 64, title V, §503, as added Aug. 

14, 1935, ch. 532, 49 Stat. 649.) 

Section 403 [7 U.S.C. 223]. Responsibility

principal for act or omission of agent 

When construing and enforcing the provisions of this 

Act, the act, omission, or failure of any agent, officer, 

or other person acting for or employed by any packer, 

any swine contractor, and any live poultry dealer, 

stockyard owner, market agency, or dealer, within the 

scope of his employment or office, shall in every case 

also be deemed the act, omission, or failure of such 

packer, any swine contractor, and any live poultry 

dealer, stockyard owner, market agency, or dealer, as 

well as that of such agent, officer, or other person. 

(Aug. 15, 1921, ch. 64, title IV, §403, 42 Stat. 168; 

Aug. 15, 1921, ch. 64, title V, §503, as added Aug. 

14, 1935, ch. 532, 49 Stat. 649; amended Pub. L. 

100–173, §6, Nov. 23, 1987, 101 Stat. 918; Pub. L. 

107–171, title X, §10502(b)(2)(C), May 13, 2002, 116 

Stat. 510.) 

Section 404 [7 U.S.C. 224]. Attorney General

institute court proceedings for enforcement

The Secretary may report any violation of this Act to 

the Attorney General of the United States, who shall 

cause appropriate proceedings to be commenced and 

prosecuted in the proper courts of the United States 

without delay. 

30 Packers and Stockyards Act, 1921.
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(Aug. 15, 1921, ch. 64, title IV, §404, 42 Stat. 168; 

Aug. 15, 1921, ch. 64, title V, §503, as added Aug. 

14, 1935, ch. 532, 49 Stat. 649.) 

Section 405 [7 U.S.C. 225]. Laws unaffected 

Nothing contained in this Act, except as otherwise 

provided herein, shall be construed— 

(a) To prevent or interfere with the enforcement of, or 

the procedure under, the provisions of the Act entitled 

“An Act to protect trade and commerce against 

unlawful restraints and monopolies,” approved July 2, 

189031, the Act entitled “An Act to supplement existing 

laws against unlawful restraints and monopolies, and 

for other purposes,” approved October 15, 191432, 

the Interstate Commerce Act as amended33, the Act 

31 The Act entitled “An Act to protect trade and commerce 

against unlawful restraints and monopolies”, approved July 2, 

1890, referred to in subsec. (a), means act July 2, 1890, ch. 647, 

26 Stat. 209, as amended, known as the Sherman Act, which 

enacted sections 1 to 7 of Title 15, Commerce and Trade. For 

complete classification of this Act to the Code, see Short Title note 

set out under section 1 of Title 15 and Tables. 

32 The Act entitled “An Act to supplement existing laws against 

unlawful restraints and monopolies and for other purposes”, 

approved October 15, 1914, referred to in subsec. (a), is act 

Oct. 15, 1914, ch. 323, 38 Stat. 730, as amended, known as the 

Clayton Act, which is classified generally to sections 12, 13, 14 

to 19, 21, and 22 to 27 of Title 15, and sections 52 and 53 of Title 

29, Labor. For further details and complete classification of the Act 

to the Code, see References in Text note set out under section 12 

of Title 15 and Tables. 

33 The Interstate Commerce Act, referred to in subsec. (a), is 

act Feb. 4, 1887, ch. 104, 24 Stat. 379, as amended, which was 

classified to chapters 1 (§1 et seq.), 8 (§301 et seq.), 12 (§901 
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entitled “An Act to promote export trade, and for other 

purposes,” approved April 10, 191834 [15 U.S.C. 61 

et seq.] or sections 73 to 76, inclusive, of the Act of 

August 27, 1894, entitled “An Act to reduce taxation, 

to provide revenue for the Government, and for other 

purposes,”35 as amended by the Act entitled “An Act 

to amend sections seventy-three and seventy-six of 

the Act of August twenty-seventh, eighteen hundred 

and ninety-four, entitled ‘An Act to reduce taxation, 

to provide revenue for the Government, and for other 

et seq.), 13 (§1001 et seq.), and 19 (1231 et seq.) of Title 49, 

Transportation. The Act was repealed by Pub. L. 95–473, §4(b), 

Oct. 17, 1978, 92 Stat. 1467, the first section of which enacted 

subtitle IV (§10101 et seq.) of Title 49. For distribution of former 

sections of Title 49 into the revised Title 49, see Table at the 

beginning of Title 49. 

34 The Act entitled “An Act to promote export trade and for other 

purposes”, approved April 10, 1918, referred to in subsec. (a), 

means act Apr. 10, 1918, ch. 50, 40 Stat. 516, known as the 

Webb-Pomerene Act, which is classified generally to subchapter 

II (§61 et seq.) of chapter 2 of Title 15, Commerce and Trade. For 

complete classification of this Act to the Code, see section 66 of 

Title 15 and Tables. 

35 Sections 73 to 76, inclusive, of the Act of August 27, 1894, 

entitled “An Act to reduce taxation, to provide revenue for the 

Government, and for other purposes”, referred to in subsec. (a), 

are sections 73 to 76 of act Aug. 27, 1894, ch. 349, 28 Stat. 570, 

as amended, and are known as the Wilson Tariff Act. Sections 

73 to 76 enacted sections 8 to 11 of Title 15. For complete 

classification of this Act to the Code, see Short Title note set out 

under section 8 of Title 15 and Tables. 
Packers and Stockyards Act

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purposes,’ “ approved February 12, 191336, or 

(b) To alter, modify, or repeal such Acts or any part or 

parts thereof, or 

(c) To prevent or interfere with any investigation, 

proceeding, or prosecution begun and pending on 

August 15, 1921. 

(Aug. 15, 1921, ch. 64, title IV, §405, 42 Stat. 168; 

Pub. L. 107–273, div. C, title IV, §14102(c)(2)(C), 

Nov. 2, 2002, 116 Stat. 1921.) 

Section 406(a) [7 U.S.C. 226]. Powers of Interst

Commerce Commission unaffected 

(a) Nothing in this Act shall affect the power or 

jurisdiction of the Interstate Commerce Commission37, 

nor confer upon the Secretary concurrent power 

or jurisdiction over any matter within the power or 

36 The Act entitled “An Act to amend sections seventy-three and 

seventy-six of the Act of August twenty-seventh, eighteen hundred 

and ninety-four, entitled, ‘An Act to reduce taxation, to provide 

revenue for the Government, and for other purposes’,” approved 

February 12, 1913, referred to in subsec. (a), is act Feb. 12, 1913, 

ch. 40, 37 Stat. 667, which is classified to sections 8 and 11 of 

Title 15. 

37 ABOLITION OF INTERSTATE COMMERCE COMMISSION 

AND TRANSFER OF FUNCTIONS: Interstate Commerce 

Commission abolished and functions of Commission transferred, 

except as otherwise provided in Pub. L. 104–88, to Surface 

Transportation Board effective Jan. 1, 1996, by section 1302 

of Title 49, Transportation, and section 101 of Pub. L. 104–88, 

set out as a note under section 1301 of Title 49. References to 

Interstate Commerce Commission deemed to refer to Surface 

Transportation Board, a member or employee of the Board, or 

Secretary of Transportation, as appropriate, see section 205 of 

Pub. L. 104–88, set out as a note under section 1301 of Title 49. 
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jurisdiction of such Commission. 

(Aug. 15, 1921, ch. 64, title IV, §406(a), 42 Stat. 169.) 

Section 406(b) - (f) [7 U.S.C. 227] Powers 

Federal Trade Commission and Secretary of 

Agriculture 

(b) Jurisdiction of Federal Trade Commission 

The Federal Trade Commission38 shall have power 

and jurisdiction over any matter involving meat, meat 

food products, livestock products in unmanufactured 

form, or poultry products, which by this chapter39

is made subject to the power or jurisdiction of the 

Secretary, as follows: 

(1) When the Secretary in the exercise of his 

duties requests of the Commission that it make 

investigations and reports in any case. 

(2) In any investigation of, or proceeding for the 

prevention of, an alleged violation of any Act 

administered by the Commission, arising out of acts 

or transactions involving meat, meat food products, 

or livestock products in unmanufactured form, if the 

Commission determines that effective exercise of 

its power or jurisdiction with respect to retail sales 

of any such commodities is or will be impaired by 

the absence of power or jurisdiction over all acts 

or transactions involving such commodities in 

such investigation or proceeding. In order to avoid 

38 TRANSFER OF FUNCTIONS: Executive and administrative 

functions of Federal Trade Commission, with certain reservations, 

transferred to Chairman of such Commission by 1950 Reorg. 

Plan No. 8, §1, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1264, 

set out in the Appendix to Title 5, Government Organization and 

Employees. 

39 Packers and Stockyards Act, 1921.
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unnecessary duplication of effort by the Government 

and burdens upon the industry, the Commissioner 

shall notify the Secretary of such determination, 

the reasons therefor, and the acts or transactions 

involved, and shall not exercise power or jurisdiction 

with regard to acts or transactions (other than retail 

sales) involving such commodities if the Secretary 

within ten days from the date of receipt of the notice 

notifies the Commission that there is pending in his 

Department an investigation of, or proceeding for 

the prevention of, an alleged violation of this chapter 

involving the same subject matter. 

(3) Over all transactions in commerce in margarine, 

oleomargarine, or poultry products and over retail 

sales of meat, meat food products and livestock 

products in unmanufactured form. 

(c) Limitation of Federal Trade Commission 

jurisdiction 

The Federal Trade Commission shall have no power 

or jurisdiction over any matter which by this Act is 

made subject to the jurisdiction of the Secretary, 

except as provided in subsection (b) of this section. 

(d) Jurisdiction of Secretary of Agriculture except for 

poultry products 

The Secretary of Agriculture40 shall exercise power 

40 Section 11 of Pub. L. 100-173, approved Nov. 23, 1987, 

provides: (a) General Rule--The amendments made by this act 

to the Packers and Stockyards Act, 1921, shall not be construed 

to limit or otherwise affect the power or jurisdiction of the Federal 

Trade Commission under the Federal Trade Commission Act to 

prevent the use of (1) unfair methods of competition in or affecting 

commerce, and (2) unfair and deceptive acts or practices in or 

affecting commerce, involving poultry products.
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or jurisdiction over oleomargarine or retail sales of 

meat, meat food products, or livestock products in 

unmanufactured form only when he determines, 

in any investigation of, or any proceeding for the 

prevention of, an alleged violation of this Act, that 

such action is necessary to avoid impairment of 

his power or jurisdiction over acts or transactions 

involving livestock, meat, meat food products, 

livestock products in unmanufactured form, or 

poultry other than retail sales thereof. In order 

to avoid unnecessary duplication of effort by the 

Government and burdens upon the industry, the 

Secretary shall notify the Federal Trade Commission 

of such determination, the reasons therefor, and 

the acts or transactions involved, and shall not 

exercise power or jurisdiction with respect to acts or 

transactions involving oleomargarine or retail sales 

of meat, meat food products, or livestock products 

in unmanufactured form if the Commission within 10 

days from the date of receipt of such notice notifies 

the Secretary that there is pending in the Commission 

an investigation of, or proceeding for the prevention 

of, an alleged violation of any Act administered by the 

Commission involving the same subject matter. 

(e) Jurisdiction of Secretary of Agriculture regarding 

poultry products 

The Secretary of Agriculture shall exercise jurisdiction 

over poultry products only in a proceeding brought 

under section 207 [7 U.S.C. 197] or section 410 [7 

U.S.C. 228b-1]when such action is necessary to avoid 

(b) Secretary’s Authority--Subsection (a) shall not be construed 

to limit or otherwise affect the authority of the Secretary of 

Agriculture under Sec. 406(e), as amended, of the Packers and 

Stockyards Act, 1921.
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impairment of his jurisdiction. 

(f) Information to be included in annual reports 

The Secretary of Agriculture and the Federal Trade 

Commission shall include in their respective annual 

reports information with respect to the administration 

of subsections (b), (d), and (e) of this section.

(Aug. 15, 1921, ch. 64, title IV, §406, 42 Stat. 169; 

Pub. L. 85–909, §1(2), Sept. 2, 1958, 72 Stat. 1749; 

Pub. L. 100–173, §7, Nov. 23, 1987, 101 Stat. 919; 

Pub. L. 102–237, title X, §1008(2), Dec. 13, 1991, 

105 Stat. 1898.) 

Section 407 [7 U.S.C. 228]. Authority of Secret

(a) Rules, regulations, and expenditures; 

appropriations 

The Secretary may make such rules, regulations, 

and orders as may be necessary to carry out the 

provisions of this Act and may cooperate with any 

department or agency of the Government, any State, 

Territory, District, or possession, or department, 

agency, or political subdivision thereof, or any person; 

and shall have the power to appoint, remove, and fix 

the compensation of such officers and employees, 

not in conflict with existing law, and make such 

expenditures for rent outside the District of Columbia, 

printing, telegrams, telephones, law books, books 

of reference, periodicals, furniture, stationery, office 

equipment, travel, and other supplies and expenses 

as shall be necessary to the administration of this 

Act in the District of Columbia and elsewhere, and 

as may be appropriated for by Congress, and there 

is authorized to be appropriated, out of any money in 

the Treasury not otherwise appropriated, such sums 
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as may be necessary for such purpose. 

(b) Deductions from proceeds for financing 

promotional, educational, and research activities 

Notwithstanding any other provision of law, the 

authority of the Secretary under this Act shall not 

apply to deductions made from sales proceeds for 

the purpose of financing promotion and research 

activities, including educational activities relating to 

livestock, meat, and other products covered by the 

Act. 

(c) Budget estimate; testimony of Secretary before 

Congressional committees 

On or before February 15 of each calendar year 

beginning with calendar year 1977, or such other date 

as may be specified by the appropriate committee, the 

Secretary of Agriculture shall testify before the Senate 

Committee on Agriculture, Nutrition, and Forestry 

and the House Committee on Agriculture and provide 

justification in detail of the amount requested in the 

budget to be appropriated for the next fiscal year for 

the purposes authorized in this chapter41. 

(d) Development and promulgation of rules governing 

hearings 

The Secretary shall, not later than sixty days after 

September 13, 1976, prescribe and implement rules 

to assure that any hearing from which any order may 

issue under this Act or any hearing the expenses 

of which are paid from funds authorized to be 

appropriated under this Act shall— 

(1) if such hearing concerns a single unit of local 

41 Packers and Stockyards Act, 1921.
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government or the residents thereof, be held within 

the boundaries of such unit; 

(2) if such hearing concerns a single geographic 

area within a State or the residents thereof, be held 

within the boundaries of such area; or 

(3) if such hearing concerns a single State or the 

residents thereof, be held within such State. 

(e) Definitions 

For the purposes of subsection (d)— 

(1) the term “unit of local government” means a 

county, municipality, town, township, village, or other 

unit of general government below the State level; 

and 

(2) the term “geographic area within a State” means 

a special purpose district or other region recognized 

for governmental purposes within such State which 

is not a unit of local government. 

(Aug. 15, 1921, ch. 64, title IV, §407, 42 Stat. 169; 

Pub. L. 85–909, §4, Sept. 2, 1958, 72 Stat. 1750; 

Pub. L. 88–61, July 8, 1963, 77 Stat. 79; Pub. L. 

94–410, §11, Sept. 13, 1976, 90 Stat. 1252; Pub. L. 

103–354, title II, §293(b), Oct. 13, 1994, 108 Stat. 

3237; Pub. L. 103–437, §4(a)(2), Nov. 2, 1994, 108 

Stat. 4581.) 

Section 408 [7 U.S.C. 228a]. Authority of Secret

to request temporary injunction or restraining 

order 

Whenever the Secretary has reason to believe that 

any person subject to this Act (a) with respect to any 

transactions subject to this Act, has failed to pay 

or is unable to pay for livestock, meats, meat food 
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products, or livestock products in unmanufactured 

form, or live poultry, or has failed to pay any poultry 

grower what is due on account of poultry obtained 

under a poultry growing arrangement, or has failed to 

remit to the person entitled thereto the net proceeds 

from the sale of any such commodity sold on a 

commission basis; or (b) has operated while insolvent, 

or otherwise in violation of this Act in a manner which 

may reasonably be expected to cause irreparable 

damage to another person; or (c) does not have 

the required bond; and that it would be in the public 

interest to enjoin such person from operating subject 

to this Act or enjoin him from operating subject to this 

Act except under such conditions as would protect 

vendors or consignors of such commodities or other 

affected persons, until a complaint under this Act 

is issued and dismissed by the Secretary or until 

an order to cease and desist made thereon by the 

Secretary has become final and effective within the 

meaning of this Act or is set aside on appellate review 

of the Secretary’s order, the Secretary may notify the 

Attorney General, who may apply to the United States 

district court for the district in which such person has 

his principal place of business or in which he resides 

for a temporary injunction or restraining order. When 

needed to effectuate the purposes of this section, the 

court shall, upon a proper showing, issue a temporary 

injunction or restraining order, without bond. Attorneys 

employed by the Secretary of Agriculture may, with 

the approval of the Attorney General, appear in the 

United States district court representing the Secretary 

in any action seeking such a temporary restraining 

order or injunction. 

(Aug. 15, 1921, ch. 64, title IV, §408, as added 
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Pub. L. 94–410, §5, Sept. 13, 1976, 90 Stat. 1250; 

amended Pub. L. 100–173, §8, Nov. 23, 1987, 101 

Stat. 919.) 

Section 409 [7 U.S.C. 228b]. Prompt payment 

purchase of livestock 

(a) Full amount of purchase price required; methods 

of payment 

Each packer, market agency, or dealer purchasing 

livestock shall, before the close of the next business 

day following the purchase of livestock and transfer 

of possession thereof, deliver to the seller or his 

duly authorized representative the full amount of 

the purchase price: Provided, That each packer, 

market agency, or dealer purchasing livestock for 

slaughter shall, before the close of the next business 

day following purchase of livestock and transfer 

of possession thereof, actually deliver at the point 

of transfer of possession to the seller or his duly 

authorized representative a check or shall transfer 

funds for the full amount of the purchase price to 

the account of the seller by wire, electronic funds 

transfer, or any other expeditious method determined 

appropriate by the Secretary; or, in the case of a 

purchase on a carcass or “grade and yield” basis, the 

purchaser shall make payment by check at the point 

of transfer of possession or shall transfer funds for 

the full amount of the purchase price to the account 

of the seller by wire, electronic funds transfer, or any 

other expeditious method determined appropriate 

by the Secretary not later than the close of the first 

business day following determination of the purchase 

price: Provided further, That if the seller or his duly 

authorized representative is not present to receive 

payment at the point of transfer of possession, as 
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herein provided, the packer, market agency or dealer 

shall transfer funds for the full amount of the purchase 

price by wire, electronic funds transfer, or any other 

expeditious method determined appropriate by the 

Secretary or place a check in the United States mail 

for the full amount of the purchase price, properly 

addressed to the seller, within the time limits specified 

in this subsection, such action being deemed 

compliance with the requirement for prompt payment. 

(b) Waiver of prompt payment by written agreement; 

disclosure requirements 

Notwithstanding the provisions of subsection (a) of 

this section and subject to such terms and conditions 

as the Secretary may prescribe, the parties to 

the purchase and sale of livestock may expressly 

agree in writing, before such purchase or sale, to 

effect payment in a manner other than that required 

in subsection (a). Any such agreement shall be 

disclosed in the records of any market agency or 

dealer selling the livestock, and in the purchaser’s 

records and on the accounts or other documents 

issued by the purchaser relating to the transaction. 

(c) Delay in payment or attempt to delay deemed 

unfair practice 

Any delay or attempt to delay by a market agency, 

dealer, or packer purchasing livestock, the collection 

of funds as herein provided, or otherwise for the 

purpose of or resulting in extending the normal period 

of payment for such livestock shall be considered an 

“unfair practice” in violation of this chapter. Nothing in 
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this section shall be deemed to limit the meaning of 

the term “unfair practice” as used in this chapter42. 

(Aug. 15, 1921, ch. 64, title IV, §409, as added 

Pub. L. 94–410, §7, Sept. 13, 1976, 90 Stat. 1250, 

amended Pub. L. 114–237, §3, Oct. 7, 2016, 130 

Stat. 970.)

Section 410 [7 U.S.C. 228b–1]. Final date 

making payment to cash seller or poultry grower 

(a) Delivery of full amount due 

Each live poultry dealer obtaining live poultry by 

purchase in a cash sale shall, before the close of the 

next business day following the purchase of poultry, 

and each live poultry dealer obtaining live poultry 

under a poultry growing arrangement shall, before the 

close of the fifteenth day following the week in which 

the poultry is slaughtered, deliver, to the cash seller 

or poultry grower from whom such live poultry dealer 

obtains the poultry, the full amount due to such cash 

seller or poultry grower on account of such poultry. 

(b) Delay or attempt to delay collection of funds as 

“unfair practice” 

Any delay or attempt to delay, by a live poultry dealer 

which is a party to any such transaction, the collection 

of funds as herein provided, or otherwise for the 

purpose of or resulting in extending the normal period 

of payment for poultry obtained by poultry growing 

arrangement or purchased in a cash sale, shall be 

considered an “unfair practice” in violation of this Act. 

Nothing in this section shall be deemed to limit the 

meaning of the term “unfair practice” as used in this 

Act. 

42 Packers and Stockyards Act, 1921.
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(c) Definition of cash sale 

For the purpose of this section, a cash sale means 

a sale in which the seller does not expressly extend 

credit to the buyer. 

(Aug. 15, 1921, ch. 64, title IV, §410, as added Pub. 

L. 100–173, §9(2), Nov. 23, 1987, 101 Stat. 920.) 

Section 411 [7 U.S.C. 228b–2]. Violations by l

poultry dealers 

(a) Written complaint by Secretary; hearing; 

intervention; amended complaint 

Whenever the Secretary has reason to believe that 

any live poultry dealer has violated or is violating any 

provision of section 207 [7 U.S.C. 197] or section 

410 [7 U.S.C. 228b–1] of this Act, he shall cause 

a complaint in writing to be served upon the live 

poultry dealer, stating his charges in that respect, and 

requiring the live poultry dealer to attend and testify 

at a hearing at a time and place designated therein, 

at least 30 days after the service of such complaint; 

and at such time and place there shall be afforded 

the live poultry dealer a reasonable opportunity to 

be informed as to the evidence introduced against 

him (including the right of cross-examination), and 

to be heard in person or by counsel and through 

witnesses, under such regulations as the Secretary 

may prescribe. Any person for good cause shown 

may, on application, be allowed by the Secretary to 

intervene in such proceeding, and appear in person 

or by counsel. At any time prior to the close of the 

hearing, the Secretary may amend the complaint; but 

in case of any amendment adding new charges, the 

hearing shall, on the request of the live poultry dealer, 

be adjourned for a period not exceeding 15 days. 
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(b) Report on findings of fact by Secretary; cease and 

desist order; assessment of civil penalty; action by 

Attorney General upon live poultry dealer’s failure to 

pay penalty 

If, after such hearing, the Secretary finds that the 

live poultry dealer has violated, or is violating, any 

provisions of section 207 [7 U.S.C. 197] or section 

410 [7 U.S.C. 228b–1] of this Act covered by the 

charges, he shall make a report in writing in which he 

shall state his findings as to the facts, and shall issue 

and cause to be served on the live poultry dealer an 

order requiring such live poultry dealer to cease and 

desist from continuing such violation. The testimony 

taken at the hearing shall be reduced to writing and 

filed in the records of the Department of Agriculture. 

The Secretary may also assess a civil penalty of 

not more than $98,60543 for each such violation. In 

determining the amount of the civil penalty to be 

assessed under this section, the Secretary shall 

consider the gravity of the offense, the size of the 

business involved, and the effect of the penalty on 

the person’s ability to continue in business: Provided, 

however, That in no event can the penalty assessed 

by the Secretary take priority over or impede the 

ability of the live poultry dealer to pay any unpaid cash 

seller or poultry grower. If, after the lapse of the period 

allowed for appeal or after the affirmance of such 

penalty, the person against whom the civil penalty is 

assessed fails to pay such penalty, the Secretary may 

refer the matter to the Attorney General, who may 

43 As required by Pub. L. 101-410 and 104-134, 7 CFR 3.91 

amended the civil penalty in this section from $20,000 to a 

maximum of $98,605, effective for violations occurring after May 

10, 2023.
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recover such penalty by an action in the appropriate 

District Court of the United States. 

(c) Amendment or setting aside of report or order 

Until the record in such hearing has been filed in a 

court of appeals of the United States, as provided in 

section 412 [7 U.S.C. 228b–3], the Secretary, at any 

time, upon such notice and in such manner as he 

deems proper, but only after reasonable opportunity to 

the live poultry dealer to be heard, may amend or set 

aside the report or order, in whole or in part. 

(d) Service of complaints, orders, and other processes 

Complaints, orders, and other processes of the 

Secretary under this section may be served in the 

same manner as provided in section 45 of title 15 [15 

U.S.C. 45]. 

(Aug. 15, 1921, ch. 64, title IV, §411, as added Pub. 

L. 100–173, §9(2), Nov. 23, 1987, 101 Stat. 920.) 

Section 412 [7 U.S.C. 228b–3]. Judicial review

order regarding live poultry dealer 

(a) Finality of order unless appeal to court of appeals; 

time limit; bond 

An order made under section 411 [7 U.S.C. 228b–2] 

shall be final and conclusive unless within 30 days 

after service the live poultry dealer appeals to the 

court of appeals for the circuit in which he has his 

principal place of business, by filing with the clerk 

of such court a written petition praying that the 

Secretary’s order be set aside or modified in the 

manner stated in the petition, together with a bond in 

such sum as the court may determine, conditioned 

that such live poultry dealer will pay the costs of the 

proceedings if the court so directs. 
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(b) Notification of appeal to Secretary; filing of record 

with court 

The clerk of the court shall immediately cause a copy 

of the petition to be delivered to the Secretary, and the 

Secretary shall thereupon file in the court the record in 

such proceedings, as provided in section 2112 of title 

28 [28 U.S.C. 2112]. If before such record is filed the 

Secretary amends or sets aside his report or order, in 

whole or in part, the petitioner may amend the petition 

within such time as the court may determine, on 

notice to the Secretary. 

(c) Issuance of temporary injunction 

At any time after such petition is filed, the court, on 

application of the Secretary, may issue a temporary 

injunction, restraining, to the extent it deems proper, 

the live poultry dealer and his officers, directors, 

agents, and employees, from violating any of the 

provisions of the order pending the final determination 

of the appeal. 

(d) Evidence in record as evidence in case; expedited 

proceedings 

The evidence so taken or admitted, and filed as 

aforesaid as a part of the record, shall be considered 

by the court as the evidence in the case. The 

proceedings in such cases in the court of appeals 

shall be made a preferred cause and shall be 

expedited in every way. 

(e) Action by court 

The court may affirm, modify, or set aside the order of 

the Secretary. 

(f) Taking of additional evidence; modified or 

additional findings by Secretary 
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If the court determines that the just and proper 

disposition of the case requires the taking of 

additional evidence, the court shall order the hearing 

to be reopened for the taking of such evidence, in 

such manner and upon such terms and conditions 

as the court may deem proper. The Secretary may 

modify his findings as to the facts, or make new 

findings, by reason of the additional evidence so 

taken, and he shall file such modified or new findings 

and his recommendations, if any, for the modification 

or setting aside of his order, with the return of such 

additional evidence. 

(g) Affirmance or modification of order as injunction 

If the court of appeals affirms or modifies the order of 

the Secretary, its decree shall operate as an injunction 

to restrain the live poultry dealer, and his officers, 

directors, agents, and employees from violating the 

provisions of such order or such order as modified. 

(h) Exclusive jurisdiction of court of appeals; finality of 

decree; appeal to Supreme Court; stay of decree 

The court of appeals shall have jurisdiction which 

upon the filing of the record with it shall be exclusive, 

to review, and to affirm, set aside, or modify, such 

orders of the Secretary, and the decree of such court 

shall be final except that it shall be subject to review 

by the Supreme Court of the United States upon 

certiorari, as provided in section 1254 of title 28 [28 

U.S.C. 1254], if such writ is duly applied for within 60 

days after entry of the decree. The issue of such writ 

shall not operate as a stay of the decree of the court 
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of appeals, insofar as such decree operates as an 

injunction, unless so ordered by the Supreme Court. 

(Aug. 15, 1921, ch. 64, title IV, §412, as added Pub. 

L. 100–173, §9(2), Nov. 23, 1987, 101 Stat. 921.) 

Section 413 [7 U.S.C. 228b–4]. Violation of final 

order by live poultry dealer; penalty 

Any live poultry dealer, or any officer, director, agent, 

or employee of a live poultry dealer, who fails to obey 

any order of the Secretary issued under the provisions 

of section 411 [7 U.S.C. 228b–2], or such order as 

modified— 

(1) after the expiration of the time allowed for filing a 

petition in the court of appeals to set aside or modify 

such order, if no such petition has been filed within 

such time; 

(2) after the expiration of the time allowed for 

applying for a writ of certiorari, if such order, or such 

order as modified, has been sustained by the court 

of appeals and no such writ has been applied for 

within such time; or 

(3) after such order, or such order as modified, has 

been sustained by the courts as provided in section 

412 [7 U.S.C. 228b–3]; shall on conviction be fined 

not less than $1,000 nor more than $20,000. Each 

day during which such failure continues shall be 

deemed a separate offense. 

(Aug. 15, 1921, ch. 64, title IV, §413, as added Pub. 

L. 100–173, §9(2), Nov. 23, 1987, 101 Stat. 922.) 

Section 414 [7 U.S.C. 228c]. Federal preemption

State and local requirements 

No requirement of any State or territory of the United 
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States, or any subdivision thereof, or the District 

of Columbia, with respect to bonding of packers or 

prompt payment by packers for livestock purchases 

may be enforced upon any packer operating in 

compliance with the bonding provisions under 7 

U.S.C. 204, and prompt payment provisions of section 

409 [7 U.S.C. 228b], respectively: Provided, That this 

section shall not preclude a State from enforcing a 

requirement, with respect to payment for livestock 

purchased by a packer at a stockyard subject to this 

Act, which is not in conflict with this Act or regulations 

thereunder: Provided further, That this section shall 

not preclude a State from enforcing State law or 

regulations with respect to any packer not subject to 

this Act or 7 U.S.C. 204. 

(Aug. 15, 1921, ch. 64, title IV, §414, formerly §410, 

as added Pub. L. 94–410, §9, Sept. 13, 1976, 90 

Stat. 1252; renumbered §414, Pub. L. 100–173, 

§9(1), Nov. 23, 1987, 101 Stat. 919.) 

Section 415 [7 U.S.C. 228d]. Annual assessment

cattle and hog industries 

Not later than March 1 of each year, the Secretary 

shall submit to Congress and make publicly available 

a report that— 

(1) assesses the general economic state of the 

cattle and hog industries; 

(2) describes changing business practices in those 

industries; and 

(3) identifies market operations or activities in those 
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industries that appear to raise concerns under this 

Act. 

(Aug. 15, 1921, ch. 64, title IV, §415, as added Pub. 

L. 106–472, title III, §312(e)(2), Nov. 9, 2000, 114 

Stat. 2077.) 

Section 417 [7 U.S.C. 229c]. Separabil

If any provision of this Act or the application thereof 

to any person or circumstances is held invalid, 

the validity of the remainder of the Act and of the 

application of such provision to other persons and 

circumstances shall not be affected thereby. 

(Aug. 15, 1921, ch. 64, title IV, §417, formerly §408, 

42 Stat. 169; renumbered §411, Pub. L. 94–410, 

§5, Sept. 13, 1976, 90 Stat. 1250; renumbered 

§415, Pub. L. 100–173, §9(1), Nov. 23, 1987, 101 

Stat. 919; renumbered §416, Pub. L. 106–472, 
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title III, §312(e)(1), Nov. 9, 2000, 114 Stat. 2077; 

renumbered §417, Pub. L. 110–234, title XI, 

§11004(a)(1), May 22, 2008, 122 Stat. 1355, and 

Pub. L. 110–246, §4(a), title XI, §11004(a)(1), June 

18, 2008, 22 Stat. 1664, 2117.) 

Supplements to the Packers and 

Stockyards Act 

Applies to Packers (see Title II) and Market 

Agencies and Dealers (see Title III)

[7 U.S.C. 204]. Bond and suspension

registrants44

On and after July 12, 1943, the Secretary may require 

reasonable bonds from every market agency (as 

defined in this subchapter45), every packer (as defined 

44 Section was enacted as part of the Department of Agriculture 

Appropriation Act, 1944, act July 12, 1943, and not as part of the 

Packers and Stockyards Act, 1921. Provisions similar to those 

in this section were contained in the following prior appropriation 

acts: July 22, 1942, ch. 516, 56 Stat. 689; July 1, 1941, ch. 267, 

55 Stat. 432; June 25, 1940, ch. 421, 54 Stat. 557; June 30, 1939, 

ch. 253, title I, 53 Stat. 970; June 16, 1938, ch. 464, title I, 52 

Stat. 721; June 29, 1937, ch. 404, 50 Stat. 406; June 4, 1936, ch. 

489, 49 Stat. 1432; May 17, 1935, ch. 131, title I, 49 Stat. 257; 

Mar. 26, 1934, ch. 89, 48 Stat. 477; Mar. 3, 1933, ch. 203, 47 

Stat. 1441; July 7, 1932, ch. 443, 47 Stat. 620; Feb. 23, 1931, ch. 

278, 46 Stat. 1252; May 27, 1930, ch. 341, 46 Stat. 402; Feb. 16, 

1929, ch. 227, 45 Stat. 1198; May 16, 1928, ch. 572, 45 Stat. 547; 

Jan. 18, 1927, ch. 39, 44 Stat. 1002; May 11, 1926, ch. 286, 44 

Stat. 527; Feb. 10, 1925, ch. 200, 43 Stat. 851; June 5, 1924, ch. 

266, 43 Stat. 460.

45 Title III of the Packers and Stockyards Act, 1921.
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in subchapter II46 of this chapter47) in connection with 

its livestock purchasing operations (except that those 

packers whose average annual purchases do not 

exceed $500,000 will be exempt from the provisions 

of this paragraph), and every other person operating 

as a dealer (as defined in this subchapter48) under 

such rules and regulations as he may prescribe, 

to secure the performance of their obligations, and 

whenever, after due notice and hearing, the Secretary 

finds any registrant is insolvent or has violated any 

provisions of this chapter he may issue an order 

suspending such registrant for a reasonable specified 

period. Such order of suspension shall take effect 

within not less than five days, unless suspended 

or modified or set aside by the Secretary or a court 

of competent jurisdiction. If the Secretary finds any 

packer is insolvent, he may after notice and hearing 

issue an order under the provisions of section 203 

[7 U.S.C. 193] requiring such packer to cease and 

46 Title II of the Packers and Stockyards Act, 1921.

47 Packers and Stockyards Act, 1921.

48 Title III of the Packers and Stockyards Act, 1921.
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desist from purchasing livestock while insolvent, or 

while insolvent purchasing livestock except under 

such conditions as the Secretary may prescribe to 

effectuate the purposes of this chapter49. 

(July 12, 1943, ch. 215, 57 Stat. 422; Pub. L. 94–

410, §§1, 4, Sept. 13, 1976, 90 Stat. 1249.)

Applies to Packers, Live Poultry Dealers, and 

Swine Contractors (see Title II)

[7 U.S.C. 229b]. Right to discuss terms

contract 50

(a) Definitions 

In this section: 

(1) Producer 

The term “producer” means any person engaged 

in the raising and caring for livestock or poultry 

for slaughter. 

(2) Processor 

The term “processor” means any person engaged 

in the business of obtaining livestock or poultry 

for the purpose of slaughtering the livestock or 

poultry. 

(b) No prohibition of discussion 

Notwithstanding a provision in any contract between 

a producer and a processor for the production of 

livestock or poultry, or in any marketing agreement 

between a producer and a processor for the sale of 

49 Packers and Stockyards Act, 1921.

50 This section was enacted as part of the Farm Security and 

Rural Investment Act of 2002, and not as part of the Packers and 

Stockyards Act, 1921.
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livestock or poultry for a term of 1 year or more, that 

provides that information contained in the contract 

is confidential, a party to the contract shall not be 

prohibited from discussing any terms or details of the 

contract with— 

(1) a Federal or State agency; 

(2) a legal adviser to the party; 

(3) a lender to the party; 

(4) an accountant hired by the party; 

(5) an executive or manager of the party; 

(6) a landlord of the party; or 

(7) a member of the immediate family of the 

party. 

(c) Effect on State laws 

Subsection (b) does not— 

(1) preempt any State law that addresses 

confidentiality provisions in contracts for the 

sale or production of livestock or poultry, except 

any provision of State law that makes lawful a 

contract provision that prohibits a party from, 

or limits a party in, engaging in discussion that 

subsection (b) requires to be permitted; or 

(2) deprive any State court of jurisdiction under 

any such State law. 
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(d) Applicability 

This section applies to each contract described 

in subsection (b) that is entered into, amended, 

renewed, or extended after May 13, 2002. 

(Pub. L. 107–171, title X, §10503, May 13, 2002, 116 

Stat. 510.) 

Sections of Other Acts Made Applicable to 

the Packers and Stockyards Act 

The Federal Trade Commission Act 

(Sections 6 and 8 through 1051), as 

approved Sept. 26, 1914

MADE APPLICABLE TO THE JURISDICTION OF 

THE SECRETARY OF AGRICULTURE PURSUANT 

TO SECTION 402 [7 U.S.C. 222] OF THE PACKERS 

AND STOCKYARDS ACT

Section 452 

The words defined in this section shall have the 

following meaning when found in this Act, to whit:

“Commerce” means commerce among the several 

States or with foreign nations, or in any Territory of 

the United States or in the District of Columbia, or 

between any such Territory and another, or between 

any such Territory and any State or foreign nation, 

or between the District of Columbia and any State or 

Territory or foreign nation.

“Corporation” shall be deemed to include any 

51 38 Stat. 719 et seq. The Federal Trade Commission Act, as 

amended, is found at 15 U.S.C. 41-58. See annotation 2 L., Ed. 

2d 2048 et seq.

52 Section 4, although not adopted in the Packers and Stockyards 

Act, 1921, may be helpful to understand Sections 6, 8, 9, and 10.
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company, trust, so called Massachusetts trust, or 

association, incorporated or unincorporated, which 

is organized to carry on business for its own profit 

or that of its members, and has shares of capital 

or capital stock or certificates of interest, and any 

company, trust, so-called Massachusetts trust, or 

association, incorporated or unincorporated, without 

shares of capital or capital stock or certificates of 

interest, except partnerships, which is organized 

to carry on business for its own profit or that of its 

members.

“Documentary evidence” includes all documents, 

papers, correspondence, books of account, and 

financial and corporate records.

“Acts to regulate commerce” means the Act entitled 

“An Act to regulate commerce,” approved February 

14, 1887, and all Acts amendatory thereof and 

supplementary thereto and the Communications 

Act of 1934 and all Acts amendatory thereof and 

supplementary thereto.

“Antitrust Acts” means the Act entitled “An Act 

to protect trade and commerce against unlawful 

restraints and monopolies,” approved July 2, 1890; 

also sections 73 to 76, inclusive, of an Act entitled 

‘An Act to reduce taxation, to provide revenue for 

the Government, and for other purposes,’” approved 

August 27, 1894; also the Act entitled “An Act to 

amend sections 73 and 76 of the Act of August 27, 

1894, entitled “An Act to reduce taxation, to provide 

revenue for the Government, and for other purposes’” 
Packers and Stockyards Act

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approved February 12, 1913; and also the Act entitled 

“An Act to supplement existing laws against unlawful 

restraints and monopolists, and for other purposes,” 

approved October 15, 1914 (15 U.S.C. 44)

(Sept.26, 1914, c. 311, § 4, 38 Stat. 719; Oct. 15, 

1914, c. 323 § 1, 38 Stat. 730; Mar. 21, 1938, c. 49, § 

2, 52 Stat. 111.)

Section 6

That the commission shall also have power--

(a) To gather and compile information concerning, 

and to investigate from time to time the organization, 

business, conduct, practices, and management of any 

corporation engaged in commerce, excepting banks 

and common carriers subject to the Act to regulate 

commerce, and its relation to other corporations and 

to individuals, associations, and partnerships.

(b) To require, by general or special orders, 

corporations engaged in commerce, excepting 

banks, and common carriers subject to the Act to 

regulate commerce, or any class of them, or any 

of them, respectively, to file with the commission in 

such form as the commission may prescribe annual 

or special, or both annual and special reports or 

answers in writing to specific questions, furnishing to 

the commission such information as it may require 

as to the organization, business, conduct, practices. 

management, and relation to other corporations, 

partnerships, and individuals of the respective 

corporations filing such reports or answers in writing. 

Such reports and answers shall be made under oath, 

or otherwise, as the commission may prescribe, 

and shall be filed with the commission within such 

reasonable period as the commission may prescribe, 
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unless additional time be granted in any case by the 

commission.

(c) Whenever a final decree has been entered against 

any defendant corporation in any suit brought by the 

United States to prevent and restrain any violation of 

the antitrust Acts, to make investigation, upon its own 

initiative, of the manner in which the decree has been 

or is being carried out, and upon the application of 

the Attorney General it shall be its duty to make such 

investigation. It shall transmit to the Attorney General 

a report embodying its findings and recommendations 

as a result of any such investigation, and the 

report shall be made public in the discretion of the 

commission.

(d) Upon the direction of the President or either House 

of Congress to investigate and report the facts relating 

to any alleged violations of the antitrust Acts by any 

corporation.

(e) Upon the application of the Attorney General 

to investigate and make recommendations for the 

readjustment of the business of any corporation 

alleged to be violating the antitrust Acts in order 

that the corporation may thereafter maintain its 

organization, management, and conduct of business 

in accordance with law.

(f) To make public from time to time such portions of 

the information obtained by it hereunder, except trade 

secrets and names of customers, as it shall deem 

expedient in the public interest; and to make annual 

and special reports to the Congress and to submit 

therewith recommendations for additional legislation; 

and to provide for the publication of its reports and 

decisions in such form and manner as may be best 
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adapted for public information and use.

(g) From time to time to classify corporations and to 

make rules and regulations for the purpose of carrying 

out the provisions of this Act.

(h) To investigate, from time to time, trade conditions 

in and with foreign countries where associations, 

combinations or practices of manufacturers, 

merchants, or traders. or other conditions, may affect 

the foreign trade of the United States, and to report to 

Congress thereon, with such recommendations as it 

deems advisable. 

Section 8

That the several departments and bureaus of the 

Government when directed by the President shall 

furnish the commission, upon its request, all records, 

papers, and information in their possession relating to 

any corporation subject to any of the provisions of this 

Act, and shall detail from time to time such officials 

and employees to the commission as he may direct.

Section 9 

That for the purposes of this Act, the commission 

or its duly authorized agent or agents shall at all 

reasonable times have access to, for the purpose of 

examination, and the right to copy any documentary 

evidence of any corporation being investigated 

or proceeded against; and the commission shall 

have power to require by subpoena the attendance 

and testimony of witnesses and the production of 

witnesses and the production of all such documentary 

evidence relating to any matter under investigation. 

Any member of the commission may sign subpoenas; 

and members and examiners of the commission may 
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administer oaths and affirmations, examine witnesses, 

and receive evidence. 

Such attendance of witnesses, and the production of 

such documentary evidence, may be required from 

any place in the United States, at any designated 

place of hearing. And in case of disobedience to a 

subpoena, the commission may invoke the aid of any 

court of the United States in requiring the attendance 

and testimony of witnesses and the production of 

documentary evidence.

Any of the district courts of the United States within 

the jurisdiction of which such inquiry is carried on 

may, in case of contumacy or refusal to obey a 

subpoena issued to any corporation or other person, 

issue an order requiring such corporation or other 

person to appear before. the commission, or to 

produce documentary evidence if so ordered, or to 

give evidence touching the matter in question; and 

any failure to obey such order of the court may be 

punished by such court as a contempt thereof.

Upon the application of the Attorney General of the 

United States, at the request of the commission, 

the district courts of the United States shall have 

jurisdiction to issue writs of mandamus commanding 

any person or corporation to comply with the 

provisions of this Act or any order of the commission 

made in pursuance thereof. 

The commission may order testimony to be taken by 

deposition in any proceeding or investigation pending 

under this Act at any stage of such proceeding or 

investigation. Such depositions may be taken before 

any person designated by the commission and having 

power to administer oaths. Such testimony shall be 

reduced to writing by the person taking the deposition, 
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or under his direction, and shall then be subscribed 

by the deponent. Any person may be compelled to 

appear and depose and to produce documentary 

evidence in the same manner as witnesses may 

be compelled to appear and testify and produce 

documentary evidence before the commission as 

hereinbefore provided. 

Witnesses summoned before the commission shall 

be paid the same fees and mileage that are paid 

witnesses in the courts of the United States, and 

witnesses whose depositions are taken and the 

persons taking the same shall severally be entitled 

to the same fees as are paid for like services in the 

courts of the United States. 

No person shall be excused from attending and 

testifying or from producing documentary evidence 

before the commission or in obedience to the 

subpoena of the commission on the ground or for the 

reason that the testimony or evidence, documentary 

or otherwise, required of him may tend to criminate 

him or subject him to a penalty or forfeiture. But no 

natural person shall be prosecuted or subjected to 

any penalty or forfeiture for or on account of any 

transaction, matter, or thing concerning which he 

may testify, or produce evidence, documentary or 

otherwise, before the commission in obedience to 

a subpoena issued by it: Provided, That no natural 

person so testifying shall be exempt from prosecution 

and punishment for perjury committed in so testifying.

(See 18 U.S.C. Part V; Sections 201, 211, 259, P.S. 

91-452, 84 Stat. 922 et seq.)
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Section 10 

That any person who shall, neglect or refuse to 

attend and testify, or to answer any lawful inquiry or 

to produce documentary evidence, if in his power 

to do so, in obedience to the subpoena or lawful 

requirement of the commission, shall be guilty of an 

offense and upon conviction thereof by a court of 

competent jurisdiction shall be punished by a fine 

of not less than $1,000 nor more than $5,000, or by 

imprisonment for not more than one year, or by both 

such fine and imprisonment. 

Any person who shall willfully make, or cause to 

be made, any false entry or statement of fact in 

any report required to be made under this Act, or 

who shall willfully make, or cause to be made, any 

false entry in any account, record; or memorandum 

kept by any corporation subject to this Act, or who 

shall willfully neglect or fail to make, or to cause 

to be made, full, true, and correct entries in such 

accounts, records, or memoranda of all facts and 

transactions appertaining to the business of such 

corporation, or who shall willfully remove out of the 

jurisdiction of the United States, or willfully mutilate, 

alter, or by any other means falsify any documentary 

evidence of such corporation, or who shall willfully 

refuse to submit to the commission or to any of its 

authorized agents, for the purpose of inspection and 

taking copies, any documentary evidence of such 

corporation in his possession or within his control, 

shall be deemed guilty of an offense against the 

United States, and shall be subject, upon conviction 

in any court of the United States of competent 

jurisdiction, to a fine of not less than $1,000 nor 
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more than $5,000, or to imprisonment for a term of 

not more than three years, or to both such fine and 

imprisonment. 

If any corporation required by this Act to file any 

annual or special report shall fail so to do within the 

time fixed by the commission for filing the same, 

and such failure shall continue for thirty days after 

notice of such default, the corporation shall forfeit 

to the United States the sum of $65953 for each and 

every day of the continuance of such failure, which 

forfeiture shall be payable into the Treasury of the 

United States, and shall be recoverable in a civil suit 

in the name of the United States brought in the district 

where the corporation has its principal office or in 

any district in which it shall do business. It shall be 

the duty of the various district attorneys54, under the 

direction of the Attorney General of the United States, 

to prosecute for the recovery of forfeitures. The costs 

and expenses of such prosecutions shall be paid out 

of the appropriation for the expenses of the courts of 

the United States. 

Any officer or employee of the commission who 

shall make public any information obtained by the 

commission without its authority, unless directed by 

a court, shall be deemed guilty of a misdemeanor, 

and, upon conviction thereof, shall be punished by 

a fine not exceeding $5,000, or by imprisonment not 

exceeding one year, or by fine and imprisonment, in 

the discretion of the court.

53 As required by Pub. L. 101-410 and 104-134, 16 CFR §1.98 

amended the civil penalty in this section from $100 to a maximum 

of $659 effective for violations occurring after January 11, 2023.

54 Act of June 25, 1948, 62 Stat. 909, substituted “United States 

attorneys” for “district attorneys.”
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The Agricultural Marketing Act (Sections 

212, 231 and 251) 

MADE APPLICABLE TO SUBTITLE B—SWINE 

PACKER MARKETING CONTRACTS (SWINE 

CONTRACT LIBRARY), PURSUANT TO SECTION 

221, SUBSECTIONS (2) AND (8) [7 U.S.C. 198(2) 

and (8)] AND SECTION 222, SUBSECTION (C) 

[7 U.S.C. 198a (C)] OF THE PACKERS AND 

STOCKYARDS ACT

Section 212. [7 U.S.C. 163

DEFINITIONS.

In this subtitle:

(1) BASE PRICE—The term ‘‘base price’’ means the 

price paid for livestock, delivered at the packing plant, 

before application of any premiums or discounts, 

expressed in dollars per hundred pounds of carcass 

weight.

(2) BASIS LEVEL—The term ‘‘basis level’’ means the 

agreed-on adjustment to a future price to establish the 

final price paid for livestock.

(3) CURRENT SLAUGHTER WEEK—The term 

‘‘current slaughter week’’ means the period beginning 

Monday, and ending Sunday, of the week in which a 

reporting day occurs.

(4) F.O.B.—The term ‘‘F.O.B.’’ means free on board, 

regardless of the mode of transportation, at the point 

of direct shipment by the seller to the buyer.

(5) LIVESTOCK—The term ‘‘livestock’’ means cattle, 

swine, and lambs.

(6) LOT—The term ‘‘lot’’ means a group of one or 

more livestock that is identified for the purpose of a 
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single transaction between a buyer and a seller.

(7) MARKETING—The term ‘‘marketing’’ means 

the sale or other disposition of livestock, livestock 

products, or meat or meat food products in 

commerce.

(8) NEGOTIATED PURCHASE—The term 

‘‘negotiated purchase’’ means a cash or spot market 

purchase by a packer of livestock from a producer 

under which—

(A) the base price for the livestock is determined 

by seller-buyer interaction and agreement on a 

day; and

(B) the livestock are scheduled for delivery to the 

packer not later than 14 days after the date on 

which the livestock are committed to the packer.

(9) NEGOTIATED SALE—The term ‘‘negotiated sale’’ 

means a cash or spot market sale by a producer of 

livestock to a packer under which—

(A) the base price for the livestock is determined 

by seller-buyer interaction and agreement on a 

day; and 

(B) the livestock are scheduled for delivery to the 

packer not later than 14 days after the date on 

which the livestock are committed to the packer.

(10) PRIOR SLAUGHTER WEEK—The term ‘‘prior 

slaughter week’’ means the Monday through Sunday 

prior to a reporting day.

 (11) PRODUCER—The term ‘‘producer’’ means any 

person engaged in the business of selling livestock to 

a packer for slaughter (including the sale of livestock 

from a packer to another packer).
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(12) REPORTING DAY—The term ‘‘reporting day’’ 

means a day on which—

(A) a packer conducts business regarding 

livestock committed to the packer, or livestock 

purchased, sold, or slaughtered by the packer;

(B) the Secretary is required to make information 

concerning the business described in 

subparagraph (A) available to the public; and

(C) the Department of Agriculture is open to 

conduct business.

(13) SECRETARY—The term ‘‘Secretary’’ means the 

Secretary of Agriculture.

(14) STATE—The term ‘‘State’’ means each of the 50 

States.

(Aug. 14, 1946, ch. 966, title II, §212, as added Pub. 

L. 106–78, title IX, §911(2), Oct. 22, 1999, 113 Stat. 

1188 .)

Section 231. [7 U.S.C. 163

DEFINITIONS

In this chapter:

(1) AFFILIATE—The term ‘‘affiliate’’, with respect to a 

packer, means—

(A) a person that directly or indirectly owns, 

controls, or holds with power to vote, 5 percent or 

more of the outstanding voting securities of the 

packer;

(B) a person 5 percent or more of whose 

outstanding voting securities are directly or 

indirectly owned, controlled, or held with power to 

vote, by the packer; and 
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(C) a person that directly or indirectly controls, or 

is controlled by or under common control with, the 

packer.

(2) APPLICABLE REPORTING PERIOD—The term 

‘‘applicable reporting period’’ means the period of time 

prescribed by the prior day report, the morning report, 

and the afternoon report, as required under section 

232(c).

(3) BARROW—The term ‘‘barrow’’ means a neutered 

male swine.

(4) BASE MARKET HOG—The term ‘‘base market 

hog’’ means a barrow or gilt for which no discounts 

are subtracted from and no premiums are added to 

the base price.

(5) BOAR—The term ‘‘boar’’ means a sexually-intact 

male swine.

(6) FORMULA PRICE—The term ‘‘formula price’’ 

means a price determined by a mathematical formula 

under which the price established for a specified 

market serves as the basis for the formula.

(7) GILT—The term ‘‘gilt’’ means a young female 

swine that has not produced a litter.

(8) HOG CLASS—The term ‘‘hog class’’ means, as 

applicable—

(A) barrows or gilts;

(B) sows; or

(C) boars or stags.

(9) NONCARCASS MERIT PREMIUM—The term 

‘‘noncarcass merit premium’’ means an increase in 
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the base price of the swine offered by an individual 

packer or packing plant, based on any factor other 

than the characteristics of the carcass, if the actual 

amount of the premium is known before the sale and 

delivery of the swine.

(10) OTHER MARKET FORMULA PURCHASE—

(A) IN GENERAL—The term ‘‘other market 

formula purchase’’ means a purchase of swine 

by a packer in which the pricing mechanism is a 

formula price based on any market other than the 

market for swine, pork, or a pork product.

(B) INCLUSION—The term ‘‘other market formula 

purchase’’ includes a formula purchase in a case 

in which the price formula is based on one or more 

futures or options contracts.

(11) OTHER PURCHASE ARRANGEMENT—The 

term ‘‘other purchase arrangement’’ means a 

purchase of swine by a packer that—

(A) is not a negotiated purchase, swine or pork 

market formula purchase, or other market formula 

purchase; and

(B) does not involve packer-owned swine.

(12) PACKER—The term ‘‘packer’’ means any 

person engaged in the business of buying swine in 

commerce for purposes of slaughter, of manufacturing 

or preparing meats or meat food products from swine 

for sale or shipment in commerce, or of marketing 

meats or meat food products from swine in an 

unmanufactured form acting as a wholesale broker, 

dealer, or distributor in commerce, except that—

(A) the term includes only a swine processing 

plant that is federally inspected;
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(B) for any calendar year, the term includes only—

(i) a swine processing plant that slaughtered 

an average of at least 100,000 swine per 

year during the immediately preceding five 

calendar years; and

(ii) a person that slaughtered an average 

of at least 200,000 sows, boars, or any 

combination thereof, per year during the 

immediately preceding five calendar years; 

and

(C) in the case of a swine processing plant or 

person that did not slaughter swine during the 

immediately preceding 5 calendar years, the 

Secretary shall consider the plant capacity of 

the processing plant or person in determining 

whether the processing plant or person should be 

considered a packer under this chapter.

(13) PACKER-OWNED SWINE—The term ‘‘packerowned swine’’ means swine that a packer (including a 

subsidiary or affiliate of the packer) owns for at least 

14 days immediately before slaughter.

(14) PACKER-SOLD SWINE—The term ‘‘packer-sold 

swine’’ means the swine that are—

(A) owned by a packer (including a subsidiary 

or affiliate of the packer) for more than 14 days 

immediately before sale for slaughter; and

(B) sold for slaughter to another packer.

(15) PORK—The term ‘‘pork’’ means the meat of a 

porcine animal.

(16) PORK PRODUCT—The term ‘‘pork product’’ 

means a product or byproduct produced or processed 

in whole or in part from pork.
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(17) PURCHASE DATA—The term ‘‘purchase data’’ 

means all of the applicable data, including weight 

(if purchased live), for all swine purchased during 

the applicable reporting period, regardless of the 

expected delivery date of the swine, reported by—

(A) hog class;

(B) type of purchase; and

(C) packer-owned swine.

(18) SLAUGHTER DATA—The term ‘‘slaughter 

data’’ means all of the applicable data for all swine 

slaughtered by a packer during the applicable 

reporting period, regardless of when the price of 

the swine was negotiated or otherwise determined, 

reported by—

(A) hog class;

(B) type of purchase; and

(C) packer-owned swine.

(19) SOW—The term ‘‘sow’’ means an adult female 

swine that has produced one or more litters.

(20) SWINE—The term ‘‘swine’’ means a porcine 

animal raised to be a feeder pig, raised for seedstock, 

or raised for slaughter.

(21) SWINE OR PORK MARKET FORMULA 

PURCHASE—The term ‘‘swine or pork market 

formula purchase’’ means a purchase of swine by a 

packer in which the pricing mechanism is a formula 

price based on a market for swine, pork, or a pork 

product, other than a future or option for swine, pork, 

or a pork product.

(22) TYPE OF PURCHASE—The term ‘‘type of 

purchase’’, with respect to swine, means—
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(A) a negotiated purchase;

(B) other market formula purchase;

(C) a swine or pork market formula purchase; and

(D) other purchase arrangement.

(Aug. 14, 1946, ch. 966, title II, §231, as added Pub. 

L. 106–78, title IX, §911(2), Oct. 22, 1999, 113 Stat. 

1193 ; amended Pub. L. 109–296, §2, Oct. 5, 2006, 

120 Stat. 1464 ; Pub. L. 114–54, title I, §102(a), Sept. 

30, 2015, 129 Stat. 513 .)

Section 251. [7 U.S.C. 16

GENERAL PROVISIONS

(a) CONFIDENTIALITY—The Secretary shall make 

available to the public information, statistics, and 

documents obtained from, or submitted by, packers, 

retail entities, and other persons under this subtitle in 

a manner that ensures that confidentiality is preserved 

regarding—

(1) the identity of persons, including parties to a 

contract; and

(2) proprietary business information.

(b) DISCLOSURE BY FEDERAL GOVERNMENT 

EMPLOYEES—

(1) IN GENERAL—Subject to paragraph (2), no 

officer, employee, or agent of the United States 

shall, without the consent of the packer or other 

person concerned, divulge or make known in any 

manner, any facts or information regarding the 

business of the packer or other person that was 

acquired through reporting required under this 

subtitle.
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(2) EXCEPTIONS—Information obtained by the 

Secretary under this subtitle may be disclosed—

(A) to agents or employees of the Department 

of Agriculture in the course of their official 

duties under this subtitle;

(B) as directed by the Secretary or the 

Attorney General, for enforcement purposes; 

or

(C) by a court of competent jurisdiction.

(3) DISCLOSURE UNDER FREEDOM OF 

INFORMATION ACT— Notwithstanding any other 

provision of law, no facts or information obtained 

under this subtitle shall be disclosed in accordance 

with section 552 of title 5, United States Code.

(c) REPORTING BY PACKERS—A packer shall 

report all information required under this subtitle on an 

individual lot basis.
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(d) REGIONAL REPORTING AND AGGREGATION—

The Secretary shall make information obtained under 

this subtitle available to the public only in a manner 

that—

(1) ensures that the information is published on a 

national and a regional or statewide basis as the 

Secretary determines to be appropriate;

(2) ensures that the identity of a reporting person 

is not disclosed; and

(3) conforms to aggregation guidelines established 

by the Secretary.

(e) ADJUSTMENTS—Prior to the publication of any 

information required under this subtitle, the Secretary 

may make reasonable adjustments in information 

reported by packers to reflect price aberrations 

or other unusual or unique occurrences that the 

Secretary determines would distort the published 

information to the detriment of producers, packers, or 

other market participants.

(f) VERIFICATION—The Secretary shall take such 

actions as the Secretary considers necessary to verify 

the accuracy of the information submitted or reported 

under chapter 2, 3, or 4.

(g) ELECTRONIC REPORTING AND PUBLISHING—

(1) IN GENERAL—The Secretary shall, to the 

maximum extent practicable, provide for the 

reporting and publishing of the information 

required under this subtitle by electronic means.

(2) IMPROVEMENTS AND EDUCATION—
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(A) ENHANCED ELECTRONIC 

PUBLISHING—The Secretary shall develop 

and implement an enhanced system 

of electronic publishing to disseminate 

information collected pursuant to this subtitle. 

Such system shall—

(i) present information in a format that 

can be readily understood by producers, 

packers, and other market participants;

(ii) adhere to the publication deadlines in 

this subtitle;

(iii) present information in charts and 

graphs, as appropriate;

(iv) present comparative information for 

prior reporting periods, as the Secretary 

considers appropriate; and

(v) be updated as soon as practicable 

after information is reported to the 

Secretary.

(B) EDUCATION—The Secretary shall 

carry out a market news education program 

to educate the public and persons in the 

livestock and meat industries about—

(i) usage of the system developed under 

subparagraph (A); and

(ii) interpreting and understanding 

information collected and disseminated 

through such system.

(h) REPORTING OF ACTIVITIES ON WEEKENDS 

AND HOLIDAYS—
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(1) IN GENERAL—Livestock committed to a 

packer, or purchased, sold, or slaughtered by 

a packer, on a weekend day or holiday shall be 

reported by the packer to the Secretary (to the 

extent required under this subtitle), and reported 

by the Secretary, on the immediately following 

reporting day.

(2) LIMITATION ON REPORTING BY 

PACKERS—A packer shall not be required to 

report actions under paragraph (1) more than once 

on the immediately following reporting day.

(i) EFFECT ON OTHER LAWS—Nothing in this 

subtitle, the Livestock Mandatory Reporting Act of 

1999, or amendments made by that Act restricts or 

modifies the authority of the Secretary to—

(1) administer or enforce the Packers and 

Stockyards Act, 1921 (7 U.S.C. 181 et seq.);

(2) administer, enforce, or collect voluntary reports 

under this title or any other law; or

(3) access documentary evidence as provided 

under sections 9 and 10 of the Federal Trade 

Commission Act (15 U.S.C. 49, 50).

(Aug. 14, 1946, ch. 966, title II, §251, as added Pub. 

L. 106–78, title IX, §911(2), Oct. 22, 1999, 113 Stat. 

1200 ; amended Pub. L. 110–234, title XI, §11001(a)

(1), May 22, 2008, 122 Stat. 1350 ; Pub. L. 110–246, 

§4(a), title XI, §11001(a)(1), June 18, 2008, 122 Stat. 

1664 , 2112.)
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Non-Discrimination Policy

The U.S. Department of Agriculture (USDA) 

prohibits discrimination against its customers, 

employees, and applicants for employment on the 

bases of race, color, national origin, age, disability, 

sex, gender identify, religion, reprisal, and where 

applicable, political beliefs, marital status, familial 

or parental status, sexual orientation, or all or part 

of an individual’s income is derived from any public 

assistance program, or protected genetic information 

in employment or in any program or activity conducted 

or funded by the Department. (Not all prohibited 

bases will apply to all programs and/or employment 

activities.)

To File an Employment Complaint

If you wish to file an employment complaint, you 

must contact your agency’s EEO Counselor within 

45 days of the date of the alleged discriminatory act, 

event, or in the case of a personnel action. Additional 

information can be found online at http://www.ascr.

usda.gov/complaint_filing_file.html. 

To File a Program Complaint

If you wish to file a Civil Rights program complaint 

of discrimination, complete the USDA Program 

Discrimination Complaint Form, found online at http://

www.ascr.usda.gov/complaint_filing_cust.html, or at 

any USDA office, or call (866) 632-9992 to request 

the form. You may also write a letter containing all 

of the information requested in the form. Send your 

completed complaint form or letter to us by mail at 

U.S. Department of Agriculture, Director, Office of 

Adjudication, 1400 Independence Avenue, S.W., 

Washington, D.C. 20250-9410, by fax (202) 690-7442 
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or email at program.intake@usda.gov.

Persons with Disabilities

Individuals who are deaf, hard of hearing or have 

speech disabilities and you wish to file either an EEO 

or program complaint please contact USDA through 

the Federal Relay Service at (800) 877-8339 or (800) 

845-6136 (in Spanish).

Persons with disabilities who wish to file a program 

complaint, please see information above on how to 

contact us by mail directly or by email. If you require 

alternative means of communication for program 

information (e.g., Braille, large print, audiotape, etc.) 

please contact USDA’s TARGET Center at (202) 720-

2600 (voice and TDD).
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