A Packer buys livestock for slaughter, manufactures or prepares meats or meat food products for sale or shipment, or markets meats, meat food products, or livestock products in an unmanufactured form, acting as a wholesale broker, dealer, or distributor.
The following lists include regulated entities subject to the Packers and Stockyards Act who are required to maintain a bond or bond equivalent. 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. Please contact a Packers and Stockyards Division (PSD) regional office with any questions concerning the listed files.
Bonded Packers Listing
Packer Responsibilities
Some of the basic responsibilities of packers under the Act are described below. Review the Packers and Stockyards Act and the Regulations issued thereunder, for a complete list of packers’ legal responsibilities.
File Bonds CFR 201.29(d)
Every packer that purchases more than$500,000 worth of livestock must maintain a reasonable bond or bond equivalent to protect livestock sellers. Packers must select clause 4 on the bond or bond equivalent form . The required bond size is based on the volume of business, with a minimum bond of $10,000. Packers whose annual livestock purchases are below $500,000 are not required to file bonds.
Pay Promptly CFR 201.43
Packers must pay livestock sellers the full amount of the livestock purchase price before the close of the next business day following the purchase of livestock and transfer of possession.
Mail Checks in Payment for Livestock Purchased for Slaughter, for Cash and Not on Credit
PSD recognizes that livestock sellers may not intend to be present when possession of livestock is transferred, and may not wish to authorize a representative to receive such payment; or for other reasons the seller may prefer that such a purchaser make payment by mailing a check within the time limit as prescribed in section 409(a) of the P&S Act (pdf). In cases when the seller does not intend to be present, the seller may use the following form of notification to the purchaser:
- I do not intend to be present at the point of transfer of possession of livestock sold by me to (name of packer, market agency or dealer) to receive a check in payment for such livestock.
- I hereby direct (name of packer, market agency or dealer) to make payment for livestock purchased from me, by mailing a check for the full amount of the purchase price before the close of the next business day following the purchase of livestock and transfer of possession thereof or, in the case of a purchase on a “carcass” or “grade and yield” basis, not later than the close of the first business day following determination of the purchase price.
- This does not constitute an extension of credit to (name of packer, market agency or dealer). This is subject to cancellation by me at any time, and if not cancelled by (date), it shall terminate on that date.
If the seller, for reasons other than not being present to receive payment, prefers to have the packer, market agency or dealer make payment by mailing a check within the time limit as provided in section 409(a) of the P&S Act (pdf), the seller may use the above form of notification, omitting the sentence stating that the seller does not intend to be present to receive payment.
PSD believes that such an agreement would not constitute an extension of credit within the meaning of Section 206 of the P&S Act because it would not give the purchaser any more time to issue a check than is provided in Section 409(a) of the P&S Act.
Maintain Accurate Scales
[9 CFR §201.71 – 9 CFR §201.72]
Scales used for buying/selling livestock or livestock carcasses must be accurate.
- Follow official scale standards ( National Institute of Standards and Technology Handbook 44, "Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices.")
- A qualified scale test agency must test your scales twice each year.
- Test once between July 1 – Dec. 31, with at least 120 days between tests.
- Scales must print weight tickets.
- Do not use a scale you know is inaccurate
Weigh Accurately
[9 CFR §201.73 and 9 CFR §201.73-1]
Only competent, trained weigh masters should weigh livestock. All weigh masters must read and sign an Acknowledgment Form certifying that they have read the regulations related to weighing livestock or poultry. The weighmaster should ensure that the scale would provide accurate weights prior to weighing. The weighmaster should keep the scale balanced at zero at all times. To do so, (1) check the zero balance every 15 minutes or 15 drafts, and (2) after every draft of more than half the scale capacity. (3) Record when the zero balance check was made; and (4) weigh each draft of livestock to the nearest scale division. The weighmaster should (5) favor neither the buyer nor the seller; (6) print a scale ticket only while livestock or livestock carcass is on scale and scale has settled; (7) complete the scale ticket; (8) allow persons with a legitimate interest in a draft of livestock to observe the weighing; and (9) reweigh a draft of livestock immediately if requested.
Hold Assets for Unpaid Cash Sellers Under Packer Trust
If a packer fails to pay for livestock, the receivables, inventories, and proceeds derived from such purchases in cash sales become trust assets by operation of law. The packer must hold these assets for the benefit of all unpaid cash sellers. Cash sellers have first claim on trust assets, superseding other creditors, even in bankruptcy court. Refer to the Pay Promptly section above. Any seller who extends credit to a packer loses all rights under the Trust provisions.
Use Fair Business Practices
[Sections 307, 311, and 312 (7 U.S.C. 208, 212, and 213)]
It is unlawful for any packer to engage in or use any unfair, unjustly discriminatory, or deceptive practice or device.
Maintain Adequate Records
[Section 401 (7 U.S.C. 221)]
Every packer must keep the accounts, records, and memoranda necessary to fully and correctly disclose all transactions involved in his/her business. This includes true ownership of the business. The records must by maintained for two full years, or longer if instructed by the Administrator.
File Annual Reports
Every packer must file an annual report with PSD. Each packer will complete and file form PSD-3004 (pdf) on a yearly basis. View the PSD-3004 instructions (pdf) for information about how to complete the form and where to send it.
Permit Inspection of Business Records and Facilities
Every packer, upon proper request, must permit authorized representatives of the Secretary of Agriculture to enter their place of business during normal business hours and to examine records pertaining to their business subject to the Act.
Provide Information about Business
Every packer, upon proper request, must give the Secretary of Agriculture or his/her authorized representatives, within a reasonable time (specified in the request), any information about its business, in writing or otherwise, and under oath or affirmation, which may be required in order to carry out the provisions of the P&S Act and Regulations.
Resolve Contract Disputes
From time to time PSD receives complaints concerning the failure or refusal of buyers to pay the full purchase price, or to accept delivery of, their purchases of meat and meat food products and sellers failing to meet contractual specifications. Most such complaints arise out of disputes concerning condition, grade, weight, or shipping instructions. For further information, visit our Meat Packers - Sales and Purchase Contract Complaints page.
Permit Producer to Decline Arbitration
Any livestock production contract requiring arbitration must also state that the grower may choose to opt out of arbitration before signing. A grower who opts out retains the right to resolve disputes in court. Both parties may later agree in writing to use arbitration after a dispute occurs. Any action preventing a grower from opting out violates the law.
The contract signature page must contain specific language allowing the grower to decline arbitration. See regulation 201.218 for the mandatory language.
Certain criteria concerning additional capital investment requirements and remedies for breach of contract only apply to packers who operate as swine contractors. See CFR 201.216 and CFR 201.217 for details.
Additional Capital Investments Criteria. When determining if an additional capital investment requirement in a swine production contract violates the P&S Act, the Secretary of Agriculture may consider several factors, including whether:
- A packer did not give a swine production contract grower discretion to refuse the additional capital investment requirement.
- The additional capital investments requirement resulted from coercion, retaliation, or threats of coercion, or retaliation by the packer.
- The packer intends or does substantially reduce or close the processing facility or end production operations within a year of requiring the additional capital investment, absent the occurrence of unforeseen events.
- The packer only required some of its swine production contract growers to make additional capital investments. The age and number of recent upgrades to, or capital investments in, the swine production contract grower’s operations.
- The cost of the additional capital investments can be expected to be recouped by the swine production contract grower.
- Swine production contract grower has sufficient time to implement the required additional capital investments.
- Equipment changes, at the grower’s expense, are required even if existing equipment was previously approved by the packer and is working as intended.
Reasonable Period to Remedy Breach of Contract. When determining if a packer has given a swine grower enough time to fix a contract breach that could lead to termination of a production contract, the Secretary of Agriculture may consider several factors, including whether :
- The packer gave the grower written notice of the contract breach when the breach was discovered.
- The notice includes:
- What the contract breach is;
- The date of the breach;
- How the grower can remedy the breach, if possible; and
- A reasonable timeframe for fixing the breach.
- The packer accounted for the swine production contract grower’s ongoing swine raising responsibilities when establishing the breach remedy deadline.
- The grower was given enough time to rebut the breach allegation.
- Note: These criteria do not limit a packer`s rights under a contract or agreement where food safety or animal welfare is concerned.