USDA Proposes New Rule to Clarify Unfair Practices in Livestock, Meat and Poultry Sectors

This proposal marks the fourth in a series of actions taken by the Biden-Harris administration to promote fair competition and reduce food costs by modernizing the Packer and Stockyards Act.

PUBLISHED ON June 25, 2024

WASHINGTON — Today, the U.S. Department of Agriculture announced new steps to support the Biden-Harris administration’s plan to make the meat and poultry supply chain fairer, more competitive, and more resilient . USDA’s Proposed Rule for Fair and Competitive Livestock and Poultry Markets would address long-standing challenges related to interpretations of unfairness and competitive harm for the livestock, meat and poultry sectors. poultry. This will support farmers and producers and continue President Biden’s work to lower food costs for consumers.

Secretary Vilsack made the announcement during an event at the Center for American Progress showcasing the Administration’s agenda to create more affordable and competitive agricultural markets. The event highlighted the extensive progress USDA has made to strengthen the department’s ability to enforce the Packer and Stockyards Act, including previous rulemaking and an enforcement partnership with the Ministry of Justice. The event also provided a look back at USDA’s successful efforts under the Investing in America program to build independent meat and poultry and other diversified food processing capacity; develop national production of innovative fertilizers; create a fairer market for seeds and other agricultural inputs; and support more robust and resilient supply chains. The USDA also released a fact sheet highlighting its actions under the Biden-Harris administration to boost competition in the agriculture sector.

“Engrained market power and its attendant abuses remain an obstacle to achieving lower prices for consumers and fairer practices for producers,” said Agriculture Secretary Tom Vilsack. “Today’s proposed rule is based on clear and transparent standards so that markets operate fairly and competitively for consumers and producers alike. Through our whole-of-government approach to competition and resiliency, the Biden-Harris Administration is fighting every day to lower costs for American families and make farmers fairer.

The proposed rule will better protect farmers, ranchers, and other covered market participants by more clearly specifying how prohibitions on unfair practices will be enforced under the Packers and Stockyards Act. Specifically, the rule provides clearer tests and frameworks regarding unfair practices that harm individual market participants and unfair practices that harm markets as a whole. If finalized, this rule would allow the USDA Agricultural Marketing Service to better fulfill its legal obligation to ensure fair and competitive domestic livestock, meat, and poultry markets and to ensure that livestock producers and poultry companies can obtain the full value of their products and services.

“Farmers, ranchers, consumers and small processors all depend on the Packers & Stockyards Act to protect them from bad market actors,” said Andy Green, USDA senior advisor for fair and competitive markets. “It is time to provide the regulatory clarity and simplicity needed to stop unfair behavior that harms the market or harms market participants.”

The proposal is based on extensive USDA administrative jurisprudence and builds on precedent established under other unfair practices laws. The proposal follows well-understood approaches to unfair practices and unfair methods of competition.

The proposed rule will be published in the Federal Register for public comment. After publication, the public can submit comments on Rules.gov for 60 days. All comments submitted will be considered as USDA develops a final rule. The final rule will be published in the Federal Register.

The issuance of this proposed rule is part of a series of USDA regulatory actions under the Packers and Stockyards Act aimed at improving transparency, ending discrimination, and supporting market fairness in the food processing industries. livestock and poultry. Previous actions include the Proposed Rule on Poultry Farmer Payment Systems and Capital Enhancement Systems, as well as Transparency in Poultry Farmer Contracts and Tournaments, and Inclusive Competition and Market Integrity under the final rules of the Packers and Stockyards Act.

USDA touches the lives of all Americans in many positive ways every day. In the Biden-Harris Administration, USDA is transforming the U.S. food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe food , healthy and nutritious in all communities, creating new markets and flows. income for farmers and producers using climate-smart food and forestry practices, making historic investments in clean energy infrastructure and capacity in rural America, and committing to equity across the department by removing systemic barriers and creating a workforce more representative of America. To learn more, visit www.usda.gov.

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