The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) has announced the withdrawal of the proposed rule, Fair and Competitive Livestock and Poultry Markets, originally issued on June 28, 2024. The proposed rule aimed to specify practices that violate Section 202(a) of the Packers and Stockyards Act of 1921 (P&S Act) by defining unfair conduct that harms both market participants and the broader market. The decision, announced by Agriculture Secretary Tom Vilsack, is due to limited time remaining in the Biden administration’s term.
The proposed rule sought to address long-standing concerns about unfair practices in the poultry industry. It aimed to provide stronger protections for producers, particularly those participating in the controversial poultry tournament system. The system, which determines payment rates based on performance rankings, has been criticized by farmers for its lack of transparency and potential for exploitation.
“This rule would have provided greater protections and more clarity for producers,” Vilsack stated. However, he confirmed that the USDA would withdraw the proposal, citing insufficient time to complete the regulatory process before the end of the administration.
The decision not to move forward with the rule comes despite the USDA’s broader efforts to strengthen oversight under the Packers and Stockyards Act. Recent initiatives have included limits on payment variability in tournament contracts and requirements for clearer terms around capital investments in poultry contracts.
While the proposal will not move forward, AMS emphasizes its continued commitment to the principles underlying the rule. The withdrawal does not reflect a change in the agency’s interpretation of its authority under the P&S Act. Instead, the Department affirms its responsibility to enforce existing statutory and regulatory requirements under the Act.
This action does not alter AMS’s ongoing efforts to support competitive and fair practices in livestock and poultry markets. The Department remains dedicated to ensuring that existing rules are applied to protect producers and maintain the integrity of agricultural markets.
AMS reaffirms its intent to faithfully administer the P&S Act and uphold its mission to safeguard fairness and transparency in agricultural commerce.
Although the withdrawal of the poultry rule may be a setback for some producers, Vilsack emphasized the administration’s commitment to other reforms aimed at fostering competition and fairness in the agriculture sector. “We’ve worked hard to provide stronger leverage for producers and ensure the marketplace is competitive,” he said.
The rule’s withdrawal leaves unresolved concerns for many poultry farmers, who continue to advocate for systemic changes to improve fairness and transparency in the industry.
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour. She was recently named the 2024 Farm Broadcaster of the Year by the National Association of Farm Broadcasting and serves as a Council Member on the World Agriculture Forum. Sabrina is a native of California’s agriculture-rich Central Valley and now divides her time between California and North Dakota.