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Market Agency Selling on Commission and Stockyard Owner

Buys or Sells livestock on a commission basis, or furnishes stockyard services.

National Tariff Listing for SOC Markets

Registered and Bonded Market Agencies Selling Livestock on Commission

  • PDF (December 2012) (506Kb)
  • XLS (December 2012) (307Kb)

Note: These lists include certain regulated entities subject to the Packers and Stockyards Act - those that are required to maintain a bond (market agencies, dealers, and packers) and those subject to the statutory trust provisions (bonded packers and live poultry dealers). The lists and bond amounts are current as of the date listed on the linked file. Once you open a file you can use the "Find" option under the "Edit" menu to locate specific regulated entities. The listed business addresses are most often mailing addresses. Please contact a Packers and Stockyards Program (P&SP) regional office with any questions concerning these lists.

Market Agency Selling on Commission and Stockyard Owner Responsibilities

The following are some basic responsibilities for market agencies buying on commission, dealers, and clearing agencies. Please refer to the Packers and Stockyards Act, 1921, as Amended and Supplemented, and the Regulations issued there under, for a complete list of legal responsibilities.

Registration

Every person operating or desiring to operate as a market agency to sell livestock for others shall apply for registration under the Act.

To file for registration you would need to complete form:

  • P&SP-1000 (PDF; 27Kb) - Application for Registration.

Bonds

Every market agency shall execute and maintain a reasonable bond, as a measure of protection for livestock consignors. The size of the bond is based on the volume of business, generally the average of their sales with a minimum bond of $10,000. Market Agencies, Selling on Commission will need to file a clause 1 bond or bond equivalent.

Custodial (Trust) Accounts

Every market agency engaged in selling livestock on a commission or agency basis shall establish and maintain a separate bank account designated as "Custodial Account for Shippers' Proceeds". This is a special trust account designed to ensure payment to consignors. P&S regularly audits this account, and there are special regulations governing how it is handled. The account is a fiduciary account. The market must deposit all proceeds from the sale of livestock into this account, and use this account to pay all consignors of livestock. It is for the transfer of money between the buyer and seller of livestock only. Proceeds from non-livestock items, such as tack, rabbits, chickens, etc., cannot go through this account.

Tariff

Each stockyard owner and market agency operating at a posted stockyard shall post for public inspection and file a signed copy with P&SP of all schedules of rate and charges that they will charge for stockyards services. Any changes to the approved tariffs must be posted at the market for at least 10 days before making the new charges effective.

Prompt Payment

Each market agency shall, before the close of the next business day following the sale of any livestock consigned to it for sale, transmit or deliver to the consignor the net proceeds received from the sale and a true written account of such sale. The account of sale should show the number, weight, and price of each kind of animal sold, the date of sale, the commission, yardage, and other lawful charges, and such other facts as may be necessary to complete the account and show fully the true nature of the transaction. The parties to a transaction may agree in writing prior to the transaction to effect payment in a manner other than previously described.

Scales

All scales used by those subject to the Act to weigh livestock, livestock carcasses, or feed for the purposes of purchase, sale, acquisition, payment, or settlement, must be installed, maintained, and operated to ensure accurate weights, in accordance with the applicable requirements in the National Institute of Standards and Technology (NIST) Handbook 44, "Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices." All such scales must be tested for accuracy by a competent agency at least twice during each calendar year-once between January 1 and June 30 and once between July 1 and December 31. You must have a minimum of 120 days between these two tests. Except that if you use such scales on a limited seasonal basis (during any continuous 8-month period) for purposes of purchase, sale, acquisition, payment or settlement, you may use such scales within an 8-month period following each test. The certification form must be filed with the regional P&SP office. Such scales must be equipped with a printing device which will record weight values on a scale ticket or other document. Any scale known to be inaccurate may not be used.

Weighing

Only competent, trained weighmasters should weigh livestock. All weighmasters must read and sign an Acknowledgment Form certifying that they have read the Instructions for Weighing Livestock or Poultry. The weighmaster should ensure that the scale will provide accurate weights prior to weighing. The weighmaster should keep the scale balanced at zero at all times; check the zero balance every 15 minutes or 15 drafts, and after every draft of more that half the scale capacity; record the time of zero balance check; and weigh each draft of livestock to the nearest scale division. The weighmaster should favor neither the buyer nor the seller; print a scale ticket only while livestock is on scale and scale has settled; complete the scale ticket; allow persons having a legitimate interest in a draft of livestock to observe the weighing; and reweigh a draft of livestock immediately if requested.

Unfair Practices

It shall be unlawful for any stockyard owner or market agency to engage in or use any unfair, unjustly discriminatory, or deceptive practice or device.

Records

Every stockyard owner and market agency shall keep such accounts, records, and memoranda as fully and correctly disclose all transactions involved in his/her business, including the true ownership of such business. The records must by maintained for two full years, or longer if instructed by the Administrator.

Annual Reports

Every stockyard owner and market agency shall file an annual report with P&SP. A Market Agency Selling on Commission will complete and file form P&SP-3003 (PDF; 62Kb) on a yearly basis.

Inspection of Business Records and Facilities

Each stockyard owner and market agency, upon proper request, shall permit authorized representatives of the Secretary of Agriculture to enter its place of business during normal business hours and to examine records pertaining to its business subject to the Act.

Posting

After the Secretary has given public notice, any livestock facility deemed to fall into the definition of a stockyard under the P&S Act shall post copies of the public notice in the stockyard. The stockyard must report changes to the stockyard ownership and operations to GIPSA as often as necessary. Once posted, a stockyard remains subject to the provisions of the P&S Act until the Secretary gives notice that the stockyard no longer meets the definition of a stockyard. At which time, the Secretary will issue another public notice indicating that the stockyard has been de-posted.

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