The U.S. Department of Agriculture (USDA) announced a proposed rule aimed at addressing unfair practices and competitive injury within the livestock, meat, and poultry industries. This initiative is part of the Biden-Harris Administration’s broader strategy to foster a fairer, more competitive, and resilient supply chain in these sectors.

Agriculture Secretary Tom Vilsack unveiled the proposal during an event at the Center for American Progress. The event emphasized the Administration's efforts to create affordable and competitive agricultural markets and highlighted USDA’s progress in enforcing the Packers and Stockyards Act. This includes prior rulemaking activities and an enforcement partnership with the Department of Justice.

"Entrenched market power and the abuses that flow from it remain an obstacle to achieving lower prices for consumers and fairer practices for producers," said Vilsack. "Today’s proposed rule stands for clear, transparent standards so that markets function fairly and competitively for consumers and producers alike."

The proposed rule aims to provide clearer guidelines on how prohibitions against unfair practices will be enforced under the Packers and Stockyards Act. It sets forth tests and frameworks to address both individual harm to market participants and overall market harm caused by unfair practices. If finalized, this regulation would enhance USDA’s Agricultural Marketing Service's ability to ensure fair national livestock, meat, and poultry markets.

“Farmers, ranchers, consumers, and smaller processors all depend upon the Packers & Stockyards Act to protect them from bad actors in the marketplace,” stated Andy Green, USDA’s Senior Advisor for Fair and Competitive Markets. “It’s time to provide the regulatory clarity needed to put an end to unfair conduct that harms the market or its participants.”

The proposal builds on USDA’s administrative case law precedent concerning unfair practices laws. It will be published in the Federal Register for public comment, allowing submissions via Regulations.gov over a 60-day period before finalization.

This initiative is part of several USDA actions under the Packers and Stockyards Act designed to enhance transparency, eliminate discrimination, and support market fairness within these industries. Previous measures include rules on Poultry Grower Payment Systems, Capital Improvement Systems, Transparency in Poultry Grower Contracting Tournaments, Inclusive Competition, and Market Integrity.

Under President Biden's administration, USDA has focused on transforming America’s food system towards more resilient local production networks while ensuring equitable access across communities. Further information can be found at www.usda.gov.