Open Markets Institute Responds to New USDA Ruling on Packers & Stockyards Act

WASHINGTON – Open Markets Institute Food Program Manager Clare Kelloway released the following statement on the USDA’s  Packers & Stockyards Act rule on poultry tournaments:

“As it stands, tournament payment systems allow dominant chicken corporations to dramatically dock farmers pay based on factors that are out of their control. We’re encouraged to see USDA using its powers under the Packers and Stockyards Act to bring much needed fairness for poultry farmers. USDA’s new proposal would ensure that chicken companies maintain a transparent base pay for growers. It also establishes some new guardrails to prevent farmers from being unfairly penalized for factors beyond their control, like late feed deliveries or sick chicks. These proposals would be an essential step forward, however, their success would depend on more vigorous enforcement of the Packers and Stockyards Act and, ultimately, greater efforts to break up consolidated chicken corporations’ market power over farmers.”

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