USDA Proposes Reforms to Poultry Industry

The U.S. Department of Agriculture (USDA) has proposed steps to tackle complex competition issues in agricultural markets and the poultry industry. The proposed rule, “Poultry Grower Payment Systems and Capital Improvement Systems,” aims to address abuses in grower ranking payment systems and capital investment requirements imposed on contract poultry growers for broiler chickens. This rule is the third in a series of Packers and Stockyards Act reforms intended to create fairer markets. This initiative is part of a broader effort under President Biden’s Executive Order on Promoting Competition in the American Economy.

Agriculture Secretary Tom Vilsack emphasized the USDA’s commitment to upholding fair competition, protecting producers, lowering consumer costs, and combating unfair practices. The proposed rule would prohibit deductions from base prices in contracts for broiler chicken growers, allow only performance bonuses, and provide tools to help growers identify risks associated with capital improvement practices. It also aims to ensure fair grower comparisons.