Collective Appeal to President Biden Over 60 agriculture organisations have collectively addressed a letter to President Joe Biden, expressing their concerns regarding the US Department of Agriculture’s (USDA) proposed updates to the Packers and Stockyards Act. The letter, dated Dec. 13, emphasises the need for clarity and transparency in contracts between poultry growers and major processing companies. Focus on Contract Transparency and Market Protection The primary concern highlighted in the letter is the competition and understanding of agreement terms among contract poultry growers. The organisations support the USDA’s efforts to enhance clarity in poultry growing contracts and to provide stronger protections for individuals vulnerable in the market. However, they express apprehension about the slow progress of these rulemakings, fearing that delays could jeopardise these critical updates. Signatories and Their Stance Signatories of the letter include notable organisations such as the American Grassfed Association, Land Stewardship Project, National Farmers Union, R-CALF-USA, and the United Food and Commercial Workers International Union. They collectively stress the importance of finalising a robust set of rules to strengthen the Packers and Stockyards Act. Concerns Over the 2024 Farm Bill The letter also addresses concerns that the 2024 Farm Bill, currently in the House of Representatives, might hinder the USDA from making further progress on these rules. The organisations argue that without adequate antitrust enforcement, the USDA’s investments in local, regional, and value-added markets could be undermined due to the challenges producers face in accessing markets in highly consolidated agricultural industries. USDA’s Commitment to Transparency In response to these concerns, the USDA had previously announced in November its commitment to enhancing transparency between processors and poultry producers. Further details were published in the Federal Register on Nov. 28. Opposition from the National Chicken Council The National Chicken Council (NCC) has previously expressed concerns that a final rule under the Packers and Stockyards Act could financially impact the US chicken industry. The NCC argues that such a rule would increase costs and administrative burdens. The collective call from over 60 agriculture organisations to President Biden underscores the urgency and importance of finalising the proposed updates to the Packers and Stockyards Act. These updates are seen as crucial for ensuring fair competition and transparency in the poultry industry, amidst concerns about market consolidation and regulatory progress.
