By Julie Tomascik
Editor

The U.S. Department of Agriculture (USDA) plans to rescind two Packers and Stockyards Act rules finalized during the Biden administration.

The move would reverse some of the most significant updates to the law in more than three decades, according to the American Farm Bureau Federation (AFBF).

The proposed action would eliminate rules aimed at increasing transparency for contract poultry growers and clarifying protections for livestock and poultry producers against retaliation, discrimination and deceptive business practices.

One of the rules, Transparency in Poultry Grower Contracting and Tournaments, took effect in 2024 and requires poultry companies to provide growers with additional information before and during production contracts.

The rule requires companies to disclose information such as the minimum number of flocks a grower can expect each year, stocking densities, flock health information, company litigation and bankruptcy history, and earnings data from other growers. USDA said those disclosures help growers better evaluate contracts, make business decisions and plan for the future of their operations.

The second rule, Inclusive Competition and Market Integrity Under the Packers and Stockyards Act, clarifies actions prohibited under the Packers and Stockyards Act, including limiting market access, retaliating against producers and engaging in deceptive practices.

The rule also specifies that farmers and ranchers are protected when communicating with government agencies, participating in legal proceedings or considering business opportunities with other processors or contractors. It clarifies that terminating contracts, refusing to deal or interfering with the sale of a farm can constitute retaliation or deceptive conduct under certain circumstances.

The Office of Management and Budget’s regulatory agenda indicates USDA intends to terminate both rules, although formal proposals have not yet been published.

“America’s farmers are deeply troubled by news that USDA plans to rescind or continue to delay several rules that are specifically designed to benefit America’s farmers and ranchers,” AFBF Zippy Duvall said in a joint statement with the National Farmers Union.

“The rules help protect farmers from retaliation by large processors, increase transparency and improve pay systems for contract poultry growers,” Duvall said. “They make it clear that unfair and deceptive practices by meatpackers will not be tolerated, and they take on the poultry tournament pay system that for too long created winners and losers based on factors outside of growers’ control.”

AFBF and Texas Farm Bureau have spent years advocating for a more level playing field for producers.

“The Trump administration has long said that it supports farmers and ranchers, but voiding these rules would do the exact opposite,” he said. “Instead, more power would be given to large processing companies at the expense of America’s farmers. We urge President Trump and Secretary Rollins to demonstrate their commitment to farmers by leaving these critical safeguards in place.”