Farmland National Beef and USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) have agreed to settle GIPSA’s complaint against the company, alleging violation of the Packers and Stockyards Act. No fine or penalty was issued.

Farmland National Beef Chief Executive Officer John R. Miller said, "We are pleased this matter has been terminated without a finding of wrongdoing or the payment of a fine or penalty on the part of National
Beef."

The Consent Order reached by the parties clarifies elements of the Packers and Stockyards Act for all packers, concluding that packers are not required to visit, offer bids, or buy cattle from any particular seller unless their failure to do so constitutes a violation of the Act.

The company has agreed to reimburse the government $95,000 for expenses associated with the investigation and in return for clarification of the law.

"As a producer-owned company, Farmland National Beef treated Callicrate Feedyard fairly, as we do all producers. We will continue to buy the best quality cattle at a competitive market price, for the benefit of our producer-owners and our customers," Miller said.

Farmland National Beef Packing Company, L.P., Kansas City, Mo., is a processor and marketer of commodity and value-added beef products, jointly owned by Farmland Industries, Inc. and U.S. Premium Beef, Ltd., two farmer-owned cooperatives. The company is the country’s fourth-largest beef processor, with nearly 10 percent market share, and markets beef products throughout the United States and nearly 60 countries worldwide.