Washington, D.C., May 18, 2026 – On July 1, 2025, the U.S. Department of Agriculture (USDA) issued a Decision and Order Without Hearing by Reason of Default against Hill City Commission LLC and Larry W. Phillips, of Hill City, Kan., for violations of the Packers and Stockyards (P&S) Act.
A USDA investigation revealed that Hill City Commission had custodial account shortages of $307,145 on May 31, 2022, and $230,900 on July 5, 2022, due to custodial account misuse and failure to reimburse the custodial account for uncollected receivables by the close of the seventh day following a livestock sale, as required by the P&S Act.
Under the Default Decision and Order, Hill City Commission and Phillips were ordered to cease and desist from misusing custodial account funds and failing to maintain their custodial account in accordance with the P&S Act and regulations. In addition, their registrations were suspended for 30 days, or longer if they do not show the custodial shortages have been eliminated. They are prohibited from engaging in any operation subject to the P&S Act during the suspension.
The Secretary of Agriculture has authority to take action against violators, including issuing cease and desist orders, suspending registrations, and imposing other remedies authorized by the P&S Act.
For information, contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or Amy.R.Blechinger@usda.gov.
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