By DAVE BLOWER JR.
Farm World Editor

KNIGHTSTOWN, Ind. — Owners of the Knightstown Livestock Auction, also known locally as the Knightstown Sale Barn, have been ordered to close its doors.

The USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) issued a press release July 8 saying it reached a consent decision with sale barn owners Joe “Rusty” Barkdull and L.K. “Larry” Spegal on June 25 to stop operating. GIPSA cited the sale barn with four violations, including:

•Failing to deposit in its Custodial Account for Shippers’ Proceeds, within the time prescribed, amounts equal to the outstanding proceeds receivable for the sale of consigned livestock;

•Failing to properly use and maintain its Custodial Account for Shippers’ Proceeds;

•Using funds from the sale of consigned livestock for purposes other than payment to consignors of the amount due from the sale of their livestock and the payment of lawful marketing charges;

•Operating while insolvent as required by the Packers and Stockyards (P&S) Act and regulations.

The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.

An attempt to reach Barkdull by phone for comment on Monday was unsuccessful. Signs posted at the Knightstown Livestock Auction state: “No livestock sale July 3 thru July 31.” There is no reason cited for the closing.

Many frequent sale barn patrons are concerned. Jon Porter, a livestock owner from rural Rush County, Ind., said he has been a faithful Knightstown Livestock Auction participant for many years.
“I started coming here when I was 12 or 13 years old with my parents,” he stated. “I’ve been dealing and raising livestock ever since then.”

Sale barn veterinarian Dr. Phil Orem reported there haven’t been unusual changes in the size of the audience or the number of consignors for the auctions in recent months.

“There’s always some difference in the size of the crowd from week-to-week, but I can’t say that there’s been any significant difference,” said Orem, who added that he had little information to share.

Porter said the sales this spring were some of the best he has ever seen at the Knightstown Livestock Auction.

“The sales always slow down a little in the summertime, but the sales this year have been really good,” he recalled. “This spring there were some sales that needed to start at 9 (a.m.) instead of 10 (a.m.) because of the number of animals that they needed to move through there.

“It is one of the best livestock sales around. It is the best market for sheep and goats that I go to. There’s a really good hay sale that goes on out there, and it is also a good spot for rabbits and poultry.”

This is not the first time Barkdull and Spegal have been cited by GIPSA for a violation of the P&S Act. On Oct. 7, 2008, GIPSA said Barkdull and Spegal were negligent in maintaining their custodial account for shipper’s proceeds and for having liabilities that exceeded their assets.

Many Knightstown Livestock Auction customers hope this issue is cleared.

“We hope the sale barn comes back soon,” Porter said. “It’s the biggest thing in Knightstown every Saturday.”