New Livestock and Poultry Marketing Rules Proposed
Rule provides new protections for producers against unfair practices.
Compiled by staff
Published: Jun 18, 2010
Ag Secretary Tom Vilsack says USDA's Grain Inspection, Packers and Stockyards Administration will publish a proposed rule that will provide significant new protections for producers against unfair, fraudulent or retaliatory practices. The proposed rules address concerns that have been discussed for many years and were developed at the direction of the 2008 Farm Bill, which requires USDA to carry out specific rulemaking to improve fairness in the marketing of livestock and poultry.
The new rules will provide further definition to practices that are unfair, unjustly discriminatory or deceptive, including outlining actions that are retaliatory in nature, efforts that would limit a producer's legal rights or representations that would be fraudulent or misleading. Additionally the proposed rules reiterate USDA's position that a producer need not overcome unnecessary obstacles and have to prove harm to competition when they have suffered a violation under the Packers and Stockyards Act.
The rules will also define undue or unreasonable preferences or advantages; establish new protections for producers required to provide expensive capital upgrades to their growing facilities - including protections to ensure producers have the opportunity to recoup 80% of the cost of a required capital investment; prohibit packers from purchasing, acquiring or receiving livestock from other packers and communicate prices to competitors; and enable a fair and equitable process for producers that choose to use arbitration to remedy a dispute.
The rules will require that companies paying growers under a tournament system provide the same base pay to growers that raise the same type and kind of poultry - including ensuring that the growers pay cannot go below the base pay amount; provide poultry growers with a written notice of a company's intent to suspend the delivery of birds under a poultry growing arrangement at least 90 days prior to the date it intends to suspend the delivery; improve market transparency; outline protections so that producers can remedy a breach of contract; and improve competition in markets by limiting exclusive arrangements between packers and dealers.
The rule will be published on Tuesday in the Federal Register. GIPSA will consider comments received by August 23, 2010.
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Tagged: usda, farm, farm bill, legal
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