Jacob F. Bosma D/B/A Chino Livestock Commission Company and Yardage v. United States Department of Agriculture

Bosma petitions for review of an order of the Judicial Officer (J.O.) of the Department of Agriculture finding Bosma violated the Packers and Stockyards Act and assessing a civil penalty of $10,000.

Bosma is a market agent operating as “Chino Livestock Commission Company and Yardage.” He deals in cows which have been consigned for sale by dairy farmers because they are not suitable for dairy operations. He sells the cows to packers for slaughter and receives a commission from the sellers.

A small percentage of the cows Bosma sold on consignment were sick or “distressed.” Purchasers of such cows ran a risk that they might die before slaughter or be condemned by government inspectors after slaughter, making them worthless. Packers therefore preferred to buy such cows “subject,” that is, subject to passing inspection. Bosma’s consignors, on the other hand, preferred to sell their cows for a “live price,” so that they would be paid something regardless of whether the animal passed inspection.

During the time when the alleged violations occurred, only one packer in Bosma’s area would purchase the sick or distressed cows, and it offered a very low price. Because Bosma was not…