This rule seeks to stabilize poultry producer payments and adds transparency to contract extension requirements.
WASHINGTON, D.C. – The Alabama Contract Poultry Growers Association, Organization for Competitive Markets, and Competitive Markets Action released the following statement in response to the USDA’s announcement of a third finalized rule reform to the Stockyards and Packers Act. This rule seeks to stabilize poultry producer payments and adds transparency to contract extension requirements. The rule says that no more than 25% of a grower’s total compensation can be based on the tournament system and that poultry producers cannot have their base pay reduced by where they place in the tournament system. Furthermore, the rule requires that producers are provided with “key information” on the nature and extent of capital investments that a company would require a contract grower to make to extend a contract.
The USDA also announced that it has withdrawn the Fair and Competitive Livestock and Poultry Markets reform to the Stockyards and Packers Act. This rule expanded the scope of what could be considered an anti-competitive activity beyond the Sherman Anti-Trust Act standard embedded in the Stockyards and Packers Act.
“We applaud Secretary Vilsack’s finalization of these regulations that are long overdue – farmers beat the Swamp on this round, we’ll see if it sticks,” said Taylor Haynes, President at the Organization for Competitive Markets. “We call on President Trump to keep these regulations in tact to prevent retaliatory practices against the American family farmer.

“We applaud the USDA for finalizing their third rule reform to the Stockyards and Packers Act,” said Jonathan Buttram, President of the Alabama Contract Poultry Growers Association. With so much outside of the control of contract poultry growers, it makes common sense to not base so much of their compensation on the tournament system.
“Extending fairness in the provision of information to contract poultry growers is long overdue,” said Vinnie Trometter, Vice President at Competitive Markets Action. These are great regulations to reign in massive price-fixing chicken conglomerates. We also hope the incoming Trump administration evaluates the Fair and Competitive Livestock and Poultry Markets rule and reintroduces it. It is needed to protect the markets that will Make America Healthy Again.”
The Organization for Competitive Markets (OCM) is a 501(c)(3) non-profit based in Lincoln, Nebraska. The foundation of the Organization for Competitive Markets is to fight for competitive markets in agriculture for farmers, ranchers, and rural communities. True competition reduces the need for economic regulation. Our mission, and our duty, are to define and advocate the proper role of government in the agricultural economy as a regulator and enforcer of rules necessary for markets that are fair, honest, accessible, and competitive for all citizens.
Competitive Markets Action (CMA) is a 501(c)(4) non-profit based in Washington, D.C., that was formed with the mission of shaping policy to promote more regenerative and sustainable agriculture, and competitive markets in the U.S., and to defend against attacks on states’ rights by the federal government. CMA works to raise awareness of the harm caused by multinational conglomerates to the American family farmer, the consumer, and our U.S. economy as a whole to bring about legislative and regulatory reforms.
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