The U.S. Department of Agriculture announced a third installment in regulatory reforms to the Packers and Stockyards Act. Ag Secretary Tom Vilsack says this third change, in combination with the others, is intended to level the playing field for farmers raising livestock under contract or for sale to meat and poultry processing companies.
“We announced the finalization of the third rule, which is focused on a fairer poultry tournament system. This system has come under a great deal of concern and criticism by producers across the United States, and we’ve taken this opportunity to listen to producers about what would create a fairer system. A more balanced system. We were told by producers that the rule should provide greater insight into a company’s payment rates under the tournament system.”
The third and final rule change will make it harder for companies to arbitrarily reduce a producer’s base pay under the tournament system.
“In the past, tournaments would allow either increases in compensation or deductions from the baseline pay under an agreement and within a tournament. The rule that we announce today is one that will end the capacity to reduce the base pay but would continue to allow for bonuses to be paid based on the competitive nature of the tournament.”
The new rule also gives producers access to important information.
“Producers also indicated to us that they needed more information and greater stability regarding the level of inputs that would be distributed in connection with the tournament system. This rule provides that stability and greater information. Finally, producers expressed the need for key information on the nature and extent of capital improvements that might be required for a contract to be renewed or to be entered into. The rule that we proposed and finalized today will provide that key information and stronger leverage for producers.”
Ag Secretary Tom Vilsack.