Proposed USDA Rule to Create Fairness for Contract Poultry Growers

USDA is making its biggest move against the poultry industries tournament system PayScale, in a new proposed rule that was recently published in the Federal Register. The rule is intended to level the playing field for contract poultry growers and the big poultry processing companies. According to USDA Secretary of Agriculture, Tom Vilsack.

“Ensuring that the system is fair to both parties that are involved in in the in the arrangement.”

Vilsack says this rule deals with unfair and deceptive practices by the poultry processors.

“It's unfair to suggest to a producer they will be guaranteed a certain base pay for whatever it is they produce, only to find out at the last minute, and after they've made significant investment, that perhaps they'll be discounted for one reason or another that they didn't receive notice of and didn't receive an opportunity to make a informed decision about.”

This rule is one of multiple rules that USDA has issued under the Biden administration related to the Packers and stockyards Act. Under this rule, processors would be prohibited from discounting a grower lower than the payment rates in their growing contract as most poultry producers are paid under contracts with vertically integrated processors that groups growers in a comparison for metrics such as weights and mortalities. Bill SEC says this rule will give contract poultry growers a fair playing field and consumers a fair price.