The U.S. Department of Agriculture (USDA) this week finalized a new rule restricting how poultry integrators score and penalize contract growers under the poultry tournament system.

The rule will require “processors to fairly and transparently pay broiler growers and limit excessively variable compensation, to operate tournaments such that growers can be more confident that comparisons are fair, and to provide growers with key information when they request growers make upgrades,” according to USDA.

The regulations take effect July 1, 2026.

USDA said the rule will give chicken farmers better insight into companies’ payment rates for their birds and institute stability and fairness in what is commonly known as the “tournament system.” The agency said the rule also will provide farmers with key information on capital improvements the companies require farmers to make in order to keep or renew contracts and give farmers stronger leverage when companies do not adhere to the rules.

This is the third rule from the Biden administration under the Packers and Stockyards Act.

The first rule required poultry integrators to disclose average gross payments over a five-year span, as well as other information to growers. The second rule prohibited packers and contractors from taking actions based on a producer’s race, color, religion, natural origin, sex, disability, marital status and age.

A fourth rule was proposed by USDA last fall that would have further defined practices that can be deemed “unfair” under the Packers and Stockyards Act. But the agency has withdrawn the rule, citing the “complexity and length of time needed to finalize that regulation.”

“Knowing that we didn’t have enough time to finish the process, we thought it was the wisest course to withdraw the rule,” Vilsack told reporters this week.

More information about the final rule, a summary and FAQ are available on the Poultry Grower Payment Systems and Capital Improvement Systems webpage.