News

New USDA rule outlines standards for livestock contracts

The U.S. Department of Agriculture is finalizing a new rule to set clearer standards on discrimination and retaliation in livestock contracts under the Packers and Stockyards Act.

The inclusive competition rule doesn’t allow hostile treatment of livestock and poultry growers based on race, color, sex, age or disability. It also doesn’t allow discrimination against a livestock or poultry cooperative.

Producers are also protected from retaliation if they enter a business relationship with a competing packer/swine contractor or live poultry dealer. Companies can’t provide false or misleading statements as they create or terminate contracts. USDA will be monitoring and evaluating the enforcement of the rule through record-keeping.

The National Farmers Union says the updated rule is needed and farmers deserve the right to stand up for themselves. The American Farm Bureau says it’s a welcome complement to USDA’s Transparency Disclosures for Contract Poultry Growers rule implemented in February.

The National Cattlemen’s Beef Association says there are still concerns with unintended consequences of the rule, but NCBA says USDA has addressed most of the major concerns in publishing the final rule.

The new rule will go into effect in early May.

The P&S Act is designed to assure fair competition and trade practices to protect the agriculture industry and consumers from unfair practices. USDA is in the process of making a series of updates to the P&S Act.