Groups Respond Positively to New USDA Rule on Competition

Several agricultural groups responded positively to USDA’s release of the Poultry Grower Payment Systems and Capital Improvement Systems proposed rule.

The National Farmers Union says the rule addresses abuses by the poultry industry of broiler chicken producers under the “tournament” ranking system as well as situations where the poultry companies make coercive facility investment demands of growers.

The Organizations for Competitive Markets and Competitive Markets Action released a statement applauding the USDA for stepping up to prevent the exploitation of contract poultry growers across America. “We hope to see these regulations swiftly finalized,” says Marty Irby, president of Competitive Markets Action.

Steve Etka, policy director of the Campaign for Contract Agriculture Reform, says the rule addresses situations in which poultry companies take advantage of contract growers and is an important step in bringing fairness to the contracting practices used by large poultry companies to contract with farmers raising chickens for them.