In one of his final calls with agriculture reporters, Agriculture Secretary Tom Vilsack announced the U.S. Department of Agriculture (USDA) has finalized its third major rule under the Packers and Stockyards Act, continuing efforts to promote fairness and transparency in agricultural markets. However, the USDA has also announced the withdrawal of a proposed rule intended to define unfair practices in livestock and poultry markets, citing time constraints in the current administration.
Secretary Vilsack emphasized the importance of the finalized rule in addressing issues raised by poultry farmers. The new regulation focuses on reforming the poultry tournament system, a method used by companies to determine payment rates. “This rule provides greater insight into payment structures, ensures stability in contract terms, and limits the variability in tournament payments,” Vilsack explained. He noted that the rule also requires transparency on capital investments necessary for farmers to maintain or renew contracts.
The withdrawn rule, titled Fair and Competitive Livestock and Poultry Markets, was proposed in June 2024 and garnered over 13,000 public comments. While the USDA remains committed to the goals of this proposal, it concluded that there was insufficient time to finalize the rule during the current administration. The agency stated that the decision does not reflect a shift in its interpretation of the Packers and Stockyards Act but allows for future reevaluation of these issues.
Read more about the withdrawn rule here.
Vilsack emphasized that the USDA has made significant strides under the Biden-Harris Administration to protect farmers, including establishing rules to prevent retaliation and discrimination, increasing transparency in contracts, and enhancing partnerships with the Department of Justice (DOJ). These efforts have led to high-profile actions, such as consent decrees with major poultry integrators to address anticompetitive practices.
“This Administration’s landmark competition efforts ensure that more of the food dollar stays with the farmers,” said Andy Green, Senior Advisor for Fair and Competitive Markets. He highlighted the administration’s broader achievements, including investments in processing capacity and measures to improve market transparency.
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.