Open Markets Weights in on Final USDA Rule to Bring Greater Fairness to Poultry Farming and Unfair Practices Rule Withdrawal
MINNEAPOLIS, MN - Today, USDA finalized a rule to regulate arbitrary and deceptive performance-based payment tactics by poultry corporations. USDA also withdrew a proposed rule that would have made it easier for individuals to seek justice against unfair treatment by meatpackers. Open Markets Institute food program manager Claire Kelloway comments on both of these updates below.
“Open Markets has advocated that the USDA clarify that individuals do not need to prove harm to industry-wide competition to challenge meatpackers for unfair practices and undue preferences. Correcting this grave legal misinterpretation is critical to ensure all livestock farmers and ranchers can hold meatpackers accountable and seek justice. We are disappointed that USDA was not able to finish this foundational rulemaking in time,” said Claire Kelloway, food program manager for the Open Markets Institute.
Open Markets and Farm Action published report cards in 2022 and 2023 to hold USDA accountable to its slow progress.
Open Markets also issued the following statement, also from Kelloway, on USDA’s final Poultry Grower Payment Systems and Capital Improvement Systems rule:
“For decades, contract growers have pleaded for USDA to enforce the Packers and Stockyards Act and end the fundamentally unfair payment method known as the tournament system. Today, USDA finalized a rule that stops short of banning tournament payment, but will make chicken contracts much more fair,” said Claire Kelloway, food program manager for the Open Markets Institute. “Under this rule, farmers will receive a clear base price for their chicken. Any performance-based bonuses must account for the impact of subpar company-provided inputs, such as lower quality chicks or late feed. Chicken processors also must provide more justification when asking contractors to make additional capital investments. All of these standards will better protect contract growers from capricious punishment by poultry processors.”
Open Markets’ Food & Power newsletter broke down USDA’s proposed tournament payment rule here. You can also find the Open Markets Institute’s comments to USDA on this poultry payment rulemaking here and here. We are honored to see that USDA incorporated aspects of our comments.
https://www.openmarketsinstitute.org/publications/report-making-the-grade
https://www.openmarketsinstitute.org/publications/report-making-the-grade-a-2023-review
https://www.foodandpower.net/latest/usda-proposes-psa-rule-3-tournaments-june-24
https://www.openmarketsinstitute.org/publications/strengthening-poultry-grower-payment-systems-rule
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