YOUR AD HERE »

Chicken industry reacts to poultry rule

Contract poultry growers on Tuesday praised the third poultry rule released by Agriculture Secretary Tom Vilsack earlier in the day, while the National Chicken Council denounced it as one of the last pieces of the Biden-Harris administration’s “anti-business regulatory agenda.”

Also on Tuesday, USDA posted the Federal Register notice on the rule, which is scheduled to take effect on July 1, 2026, and also another Federal Register notice withdrawing a fourth rule that Vilsack said USDA did not have time to complete before the Biden-Harris administration leaves office.

The Campaign for Contract Agriculture Reform, whose members include Farm Aid, Farm and Ranch Freedom Alliance, Government Accountability Project: Food Integrity Campaign, National Family Farm Coalition, National Farmers Union, National Sustainable Agriculture Coalition, R-CALF USA, Rural Advancement Foundation International, and Western Organization of Resource Councils, said USDA had finalized a rule “significantly reforming the payment system commonly used by poultry companies to pay contract poultry growers.”



“Contract poultry growers enter the business expecting a fair working relationship with their poultry company, only to realize the payment system is inherently stacked against them and penalizes them over things beyond their control,” said Steve Etka, CCAR policy director. “This rule establishes some important guardrails around the ‘tournament’ payment system to end deceptive aspects of the system and require the use of common-sense, fair business practices.”

Etka noted that the rule is the third in a series of important Packers and Stockyards Act rule updates promulgated by the Biden administration to address abusive and deceptive practices of poultry companies and meatpackers in their dealings with farmers and ranchers. Two rules — the Transparency in Poultry Grower Contracting and Tournaments, and the Inclusive Competition and Market Integrity under the Packers and Stockyards Act — have already been finalized.



“Secretary Vilsack deserves high praise for his diligence in making necessary changes to the outdated Packers and Stockyards Act regulations,” said Etka. “We look forward to working with the Trump administration to implement these pro-farmer rules.”

Claire Kelloway, food program manager for the Open Markets Institute, said, “USDA finalized a rule that stops short of banning tournament payment, but will make chicken contracts much more fair. Under this rule, farmers will receive a clear base price for their chicken. Any performance-based bonuses must account for the impact of subpar company-provided inputs, such as lower quality chicks or late feed. Chicken processors also must provide more justification when asking contractors to make additional capital investments. All of these standards will better protect contract growers from capricious punishment by poultry processors.”

On the withdrawal of the Fair and Competitive Livestock and Poultry Markets proposed rule, Kelloway said, “We are disappointed that USDA was not able to finish this foundational rulemaking in time.”

Kelloway said that the rule could have corrected the “grave legal misinterpretation” that individuals have to prove harm to industry-wide competition to challenge meatpackers for unfair practices and undue preferences.

The Alabama Contract Poultry Growers Association, Organization for Competitive Markets, and Competitive Markets Action praised USDA’s action.

Vinnie Trometter, vice president at Competitive Markets Action, said, “These are great regulations to reign in massive price-fixing chicken conglomerates. We also hope the incoming Trump administration evaluates the Fair and Competitive Livestock and Poultry Markets rule and reintroduces it. It is needed to protect the markets that will Make America Healthy Again.”

American Farm Bureau Federation President Zippy Duvall said, “Farm Bureau appreciates USDA’s commitment to bringing greater fairness to farmers who raise poultry under the tournament system. AFBF has long advocated for more stability in the sector and for increased transparency in how farmers are paid. This rule takes a step in the right direction, including requiring companies to provide insight into payment rates and details on capital improvements as part of a contract renewal.

“The final rule will benefit contract poultry growers nationwide. We stand ready to work with the new administration and Congress to emphasize the importance of leveling the playing field for farmers, and we will oppose any future legislative or regulatory efforts to weaken or destabilize protections for America’s contract poultry growers.”

National Chicken Council President Harrison Kircher said, “The Biden administration, with just six days remaining, is racing to impose the last pieces of its anti-business regulatory agenda.

“This rule — which Congress never asked for — will lead to rigid, one-size-fits-all requirements on chicken growing contracts that would stifle innovation, lead to higher costs for consumers, decrease competition, and cost jobs by driving some of the best farmers out of the chicken business.

“The vast majority of chicken farmers in rural America are happy and prosper raising chickens in partnership with companies, and they don’t want the government meddling on their farms and telling them how they should run their businesses,” Kircher said.

More Like This, Tap A Topic
news

[placeholder]