By Jamie Martin
The U.S. Department of Agriculture (USDA) is taking action to address concerns about fairness in poultry contracts. As part of the President's plan to create a more competitive and transparent agricultural sector, USDA has proposed a new rule - "Poultry Grower Payment Systems and Capital Improvement Systems."
This proposed rule targets issues related to how broiler chicken growers are paid under "tournament" systems. These systems rank growers based on performance, and the ranking determines their pay.
The USDA proposal prohibits companies from deducting from the base price in contracts, allowing only bonuses for exceeding performance goals. Additionally, the rule provides growers with tools to assess potential risks associated with capital improvement demands from poultry companies.
The proposed rule also focuses on ensuring fairness in grower ranking systems. This means companies designing these systems must do so in a way that treats all growers equally.
Public comment is encouraged on the proposed rule before it is finalized. Stakeholders can submit comments through the Regulations.gov web portal within 60 days of publication in the Federal Register.
This effort is part of a larger USDA initiative to promote fairer competition in agricultural markets. The department is also finalizing other rules under the Packers and Stockyards Act and taking actions to support independent meat and poultry processors, expand domestic fertilizer production, and strengthen local food systems.
The USDA is also launching a new data visualization tool, the Livestock Mandatory Reporting (LMR) Live Cattle Data Dashboard. This user-friendly tool provides easier access to information on the live cattle market. Additionally, USDA will begin publishing more data on cattle marketing arrangements and pricing.
These initiatives aim to create a fairer and more transparent marketplace for poultry growers and cattle producers, ultimately benefiting both producers and consumers.
Photo Credit: usda
Categories: National