USDA Working to Strengthen Enforcement of the Packers and Stockyards Act

The USDA will begin work on three proposed rules to support the enforcement of the Packers and Stockyards Act. The 100-year-old law was originally designed to protect poultry farmers, hog producers, and cattle ranchers from unfair, deceptive, and anti-competitive practices in meat markets. USDA will take three actions related to rulemaking in the months ahead. First, USDA intends to propose a new rule that will provide greater clarity to strengthen enforcement against unfair and deceptive practices, undue preferences, and unjust prejudices. USDA will also propose a new poultry grower tournament system rule, with the current inactive proposal to be withdrawn. The agency will also re-propose a rule to clarify that parties do not need to demonstrate harm to competition to bring an action under Section 202 of the Act. “The pandemic and other recent events have revealed how concentration can take a painful toll on independent farmers and ranchers while exposing working family consumers to higher prices and uncertain output,” says Ag Secretary Tom Vilsack. “The Packers and Stockyards Act is 100 years old and needs to take into account modern market dynamics.” He says as the agency works to strengthen the resiliency of the country’s supply chains, enforcement of the Packers and Stockyards Act will be critically important.

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