The USDA announced the next steps it’s proposing to address the many complex competition issues in agricultural markets and create a fairer playing field for poultry growers and farmers. USDA is proposing the rule “Poultry Grower Payment Systems and Capital Improvement Systems.”
The new rule would address a range of abuses that have occurred in relation to grower ranking payment systems, commonly called “tournaments.” It also addresses abuses of additional capital investment requirements that poultry companies commonly ask of their contract growers for broiler chickens. This rule is the third in a suite of Packers and Stockyards Act rules that USDA has undertaken to create fairer markets, which ultimately will lead to lower grocery prices for hardworking families. USDA is also announcing new publicly available cattle market transparency tools. These and previous actions are intended to enhance transparency, stop retaliation and discrimination, reduce costs, and support market fairness in every circumstance.
Meanwhile,
The National Chicken Council released a statement responding to the announcement of USDA’s new proposed rule, “Poultry Grower Payment Systems and Capital Improvement Systems.”
NCC President Mike Brown says these are solutions in search of problems that do not exist. “This is the latest example of the Biden administration racing to impose its anti-business regulatory agenda ahead of November’s election,” Brown says. “This rule, which Congress never asked for, will lead to rigid, one-size-fits-all requirements on chicken growing contracts that would stifle innovation, lead to higher costs for consumers, decrease competition, and cost jobs by driving some of the best farmers out of the chicken business.”
He also says the administration likes to deflect the blame at our country’s food producers as the reason for high grocery prices, instead of looking in the mirror at their failed policies and increased regulation. “We plan to express strong opposition in comments,” Brown adds.
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