010609 USDA Settles Complaint Against Farmland

Wichita, KS - The Agriculture Department's Grain Inspection, Packers and Stockyards Administration has settled a complaint it filed against Farmland National Beef Packing Co.

The settlement came during the second week of an administrative hearing in Kansas City, Mo., on the department's contention that Farmland retaliated against Callicrate Feedyard of St. Francis because of a manager's criticism of the packer.

Farmland did not acknowledge any wrongdoing in the case, but agreed to pay $95,000 to reimburse the government for its investigation. It is not required to buy cattle from Callicrate or anyone else under the agreement, as long as it does not violate the Packers and Stockyards Act of 1921.

The settlement was made without the knowledge of feedyard owner Mike Callicrate, who waited in a motel room in Kansas City all day Wednesday waiting to be called to testify at the hearing.

Callicrate said Thursday he was only told an agreement was reached, but didn't know any of the details of it until contacted by The Associated Press. He called the agreement ridiculous, and said he was disappointed.

“It sounds like a sellout to me. Wow,” he said. “Now we know that justice does have a price and it is very, very low. It is $95,000.”

Callicrate said cattlemen cannot depend on the Justice Department and USDA to enforce antitrust laws.

“I am just sick,” he said. “We don't have a government to protect us. We have no government able to stand up to these big companies.”

USDA spokeswoman Leah Akbar said Callicrate was not consulted on the settlement because he was not a litigant in the case, but said the agency should have provided him the courtesy of giving him a copy of the news release or at least let him know the details.

“I don't call a settlement of $95,000 a sellout -- it is a substantial penalty,” she said.

She said she did not know how much USDA spent to prosecute the case.

The consent decree orders Farmland not to engage in any discriminatory practice or subject any cattle seller to undue or unreasonable prejudice or disadvantage.

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