By Shelby Shank
Field Editor

American Farm Bureau Federation (AFBF) submitted comments on the U.S. Department of Agriculture’s (USDA) rule on Inclusive Competition and Market Integrity Under the Packers and Stockyards Act.

The proposed rule aims to clarify what constitutes retaliation and deception, as well as defining a “market vulnerable individual.”

It clarifies responsibilities of the Agricultural Marketing Service (AMS) to livestock producers and poultry growers.

“AFBF supports enforcement of the Packers and Stockyards Act of 1921 (the Act), especially when retaliation and deception strategies are used by poultry integrators to coerce contract poultry growers and when others in the livestock industry use their size and scale to negatively affect other livestock producers. Farm Bureau uniquely represents the livestock,” AFBF wrote in the comments.

Farm Bureau supports provisions of the proposed rule that clarify AMS’s responsibilities to farmers and ranchers with respect to undue prejudices or disadvantages, unjust discriminatory practices and deceptive practices.

The national organization, however, does not support the proposed definition of a “market vulnerable individual.” AMS defines a market vulnerable individual as a person or regulated entity who are at risk of adverse treatment.

“We believe the proposed rule should apply broadly to anyone who participates in marketing of livestock or poultry grown under contract and that defining another category of protection undermines the purpose of the act,” the organization said.

The proposed rule would:

  • Prohibit, as undue prejudices, disadvantages, and adverse actions against “market vulnerable individuals” who are at heightened risk in relevant markets;
  • Prohibit, as unjust discrimination, retaliatory and adverse actions that interfere with lawful communications, assertion of rights, associational participation, and other protected activities;
  • Prohibit, as deceptive practices, regulated entities employing pretexts, false or misleading statements, or omissions of material facts, in contract formation, contract performance, contract termination, and contract refusal; and
  • Require recordkeeping to support USDA monitoring, evaluation, and enforcement of compliance with aspects of this rule.

Farm Bureau supports the Packers and Stockyards Act and enforcement mechanisms to combat retaliation, especially within the poultry-growing industry. Based on AFBF policy and extensive discussions with affected members, AFBF believes this proposed rule adds additional protections for livestock producers and poultry growers.