The Packers and Stockyards Act is designed to maintain competition and integrity in the meat, livestock, and poultry industries. The Packers and Stockyards Act was originally passed in 1921 and has been updated and amended several times through the years. The last major amendment came in 1978. The act contains provisions banning unfair and deceptive business practices such as price discrimination, weight and grade manipulation of livestock or carcasses, commercial bribery, and misrepresentation of source, condition, or quality of livestock. The act gives the Secretary of Agriculture the authority to regulate livestock marketing activities at public stockyards and the operations of meat packers and live poultry dealers. In addition, the act authorizes the U.S. Department of Agriculture to regulate the rates of stockyard operators and market agencies at the stockyards.

Enforcement of the Packers and Stockyards Act is charged to the Grain Inspection, Packers, and Stockyards Administration. It is the mission of the administration to promote fair and competitive trading practices for the overall benefit of consumers and agricultural producers. Unfortunately, the Grain Inspection, Packers, and Stockyards Administration is regularly understaffed and criticized for not investigating and taking formal actions regarding complaints made as per the act. Further, the enforcement of the act is often challenging because it is difficult to prove the existence of anti-competitive practices. Some states have enacted state legislation mirroring the federal act believing that it is easier to enforce these provisions at the state level rather than at the federal level.

One should be aware of who is and who is not subject to the act. For example, farmers and ranchers are not subject to the act when marketing their own livestock or when buying livestock for their own stocking or feeding purposes.

Livestock producers benefit from the act so it is important to understand the benefits afforded by the Packers and Stockyards Act. Livestock producers may file claims for reparations against stockyard operators, commission firms, auction markets, and dealers. If a consumer is harmed by a packer, the Packers and Stockyards Act provides for private civil actions by the harmed party against the offending party.

Another benefit that livestock producers receive from the Packers and Stockyards Act is the financial protection aspect of the act. Payment protection for the sellers of livestock is provided directly under the act by statutory requirement. Prompt payment for the purchase of livestock is an important element of the financial protection established by the act. Financial protection is further enforced by bonding requirements of a packer trust which provides protection to livestock producers who fail to receive payments from meat packers.

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