USDA to strengthen protection for livestock farmers

WASHINGTON, D.C. — The U.S. Department of Agriculture has announced it will begin work on three proposed rules to support enforcement of the Packers and Stockyards Act, a 100-year old law that was originally designed to protect poultry, hog and cattle farmers from unfair, deceptive and anti-competitive practices in meat markets. USDA's pending action was noted in the Unified Agenda of Regulatory and Deregulatory Actions released Friday by the White House Office of Management and Budget, according to a USDA news release. The release said USDA intends to take three actions related to rulemaking in the months ahead. First, USDA intends to propose a new rule that will provide greater clarity to strengthen enforcement of unfair and deceptive practices, undue preferences and unjust prejudices, the release said. Second, USDA will propose a new poultry grower tournament system rule, with the current inactive proposal to be withdrawn. Third, USDA will re-propose a rule to clarify that parties do not need to demonstrate harm to competition in order to bring an action under the P&S Act. "The pandemic and other recent events have revealed how concentration can take a painful toll on independent farmers and ranchers, while exposing working family consumers to higher prices and uncertain output," said Agriculture Secretary Tom Vilsack in the release. "The Packers and Stockyards Act is a vital tool for protecting farmers and ranchers from excessive concentration and unfair, deceptive practices in the poultry, hog and cattle markets, but the law is 100 years old and needs to take into account modern market dynamics. It should not be used as a safe harbor for bad actors. The process we're beginning today will seek to strengthen the fairness and resiliency of livestock markets on behalf of farmers, ranchers and growers." The release said USDA is working to make meaningful investments and improvement to build back a better food system that is fair and equitable, more resilient against shocks, delivers greater value to growers and workers, and offers consumers an affordable selection of healthy, affordable food produced and sourced locally and regionally. The planned P&S Act proposals will support USDA's efforts to ensure fairer and more resilient markets for farmers, ranchers and producers, the release said.