The USDA recently finalized a set of rules under the Packers and Stockyards Act, drawing varying responses from different quarters. USDA Secretary Tom Vilsack stated that these rules aim to assist contract poultry growers and ensure transparency in their agreements with major processing companies.
The new regulations mandate large processing companies, termed Live Poultry Dealers, to provide essential information to poultry growers through the “Live Poultry Dealer Disclosure Document.” This document is designed to help growers make informed financial decisions and sets accountability and governance standards for poultry companies.
Additionally, the USDA clarified that meat products for USDA purchasing programs must come from animals born, raised, and slaughtered in the United States, benefiting U.S. producers and nutrition assistance programs.
To address competition challenges in the agricultural sector, the USDA has established a new senior-level career position, the AMS Chief Competition Officer, who will collaborate with other federal agencies.
While the USDA’s actions are seen as a positive step towards addressing competition issues and promoting fairness for small- and mid-size farmers, not all reactions have been favorable. Food & Water Watch, in a statement, called for more transparency and robust protections for farmers, beyond just informing them of the exploitative nature of the system.
On the opposing end, the National Chicken Council (NCC) expressed skepticism, characterizing the rule as a move that could initiate lawsuits. NCC President Mike Brown argued that the rule might have a negative financial impact on the U.S. chicken industry, raising costs, administrative burdens, and potentially destabilizing the current compensation system.
The diverse opinions underscore the complexity of regulatory changes in the agriculture sector and the ongoing tension between promoting transparency, protecting farmers, and maintaining industry stability.
