The United States Department of Agriculture (USDA) recently proposed four new rules affecting the poultry industry. Two of the rules have gone into effect, and two of the rules remain proposed rules, as of the publication of this blog in September 2024. Jason Jackson offers insight into these new rules and what they mean for poultry growers.
Updates to the Packers and Stockyards Act
The four new rules serve as updates to the Packers and Stockyards (P&S) Act of 1921. Jason Jackson says the P&S Act exists to give protections to those who are actively participating in raising birds. He thinks every grower needs to know about these updates to help you prepare and figure out a bit more about your operation and your relationship with your integrator.
1. Transparency in Poultry Contracting and Tournaments
The first rule, Transparency in Poultry Contracting and Tournaments, went into effect in February 2024.
According to USDA Agriculture Marketing Service, “This final rule amends the regulations under the Packers and Stockyards Act, 1921 (Act), to add disclosures and information that live poultry dealers engaged in the production of broilers must furnish to poultry growers with whom dealers make poultry growing arrangements. The rule also establishes additional disclosure requirements for live poultry dealers engaged in the production of broilers who use poultry grower ranking systems to determine settlement payments for broiler growers. These requirements add targeted transparency to the market for grower services that will inhibit deceptive practices related to broiler contracting and performance. The Act protects fair trade, financial integrity, and competitive markets for livestock, meat, and poultry.”
Jason says this rule is designed to give you some key information that you may not have received before, such as the hen age of your flock. You may also have noticed that you’ve been getting additional information about the hen age of other growers’ flocks. These new pieces of information are both parts of the new rule.
2. Inclusive Competition and Market Integrity
The second rule, Inclusive Competition and Market Integrity, went into effect in May 2024.
Under this rule, Jason explains that any kind of discriminatory practice based on religion, race, or other factors is prohibited. The rule also bans any type of retaliatory acts by integrators against anyone who might file suit against them or participate in any type of hearings.
3. Poultry Grower Payment Systems and Capital Improvement Systems
As of the publication of this blog in September 2024, the third rule, Poultry Grower Payment Systems and Capital Improvement Systems, is a proposed rule.
Jason says this rule would no longer allow deductions from your base pay based on how you end up in the tournament system. This means that you could only have money added to your base pay—not have money taken away. Under this rule, everyone would get their base pay regardless of where they finish in the flock. Plus, the tournament system comparison process would be revealed.
4. Fair and Competitive Livestock Poultry Markets
The fourth rule, Fair and Competitive Livestock Poultry Markets, is also a proposed rule as of the publication of this blog. Jason explains how this rule would clarify a few things and make sure that everybody is protected. No matter if it affects every single grower or one grower, you still have the opportunity to be protected by all of these rules.
USDA Fact Sheets
To dive deeper and do your own research on these rules, I encourage you to take a look at the USDA fact sheets.
- Transparency in Poultry Contracting and Tournaments
- Inclusive Competition and Market Integrity
- Poultry Grower Payment Systems and Capital Improvement Systems
- Fair and Competitive Livestock Poultry Markets
Contact Us
If you have any questions, contact me at allen@southlandorganics.com. For more information on topics affecting poultry growers, subscribe to our YouTube channel.
