USDA has filed a complaint against Excel Corporation alleging the company underpaid more than 1,250 hog farmers by about $1.8 million.  The complaint results from routing compliance investigations of Excel's hog purchases during late 1997 and early 1998.

The complaint alleges that Excel failed to notify hogs producers that it changed the method of calculating lean percent of hogs.  Excel uses lean percent to compute the purchase price it pays farmers for hogs that it buys on a "carcass merit basis," according to USDA.

As a result of the undisclosed formula change, Excel paid lower prices for more than 19,900 lots of hogs purchased on the carcass merit basis.  The investigation, says USDA, "revealed violations of the Packers and Stockyards Act."

Agriculture Secretary Dan Glickman said USDA has become "increasingly concerned about ensuring the integrity and competitiveness of livestock markets and the need to protect smaller producers from unfair trade practices."