By Jamie Martin
The USDA has finalized its third rule under the Administration to improve fairness and transparency for contract farmers under the Packers and Stockyards Act. These reforms benefit farmers raising chickens, turkeys, hogs, cattle, and sheep for large processors.
Key Features of the New Rule:
- Transparency in Payments: Farmers gain insights into payment rates and tournament systems used by processors.
- Fair Competition: Protections against unfair and deceptive practices in poultry contracting.
- Clear Upgrade Requirements: Farmers are informed about required capital improvements for contract renewals.
- Agriculture Secretary Tom Vilsack stated, “It is USDA’s job to advocate for farmers, and these regulatory improvements give us the strongest tools we’ve ever had.”
Previous Reforms:
- Transparency in Poultry Contracts (2023): Mandated disclosures on grower earnings and variable costs.
- Market Integrity Rule (2024): Protected farmers from retaliation and deceptive contracts.
- The USDA and Department of Justice (DOJ) have also enforced major consent decrees, penalizing companies for antitrust violations and unfair practices. For example, Koch Foods reimbursed growers for unfair penalties in 2023.
These efforts are part of broader USDA initiatives to enhance competition, from revising “Product of USA” labels to increasing meat processing capacity.
The new rule takes effect on July 1, 2026. Visit the Poultry Grower Payment Systems webpage for more information.
Photo Credit: usda
Categories: National