The National Farmers Union (NFU) has expressed approval for the U.S. Department of Agriculture's (USDA) new rule regarding poultry grower payment systems and capital improvement systems. This regulation is seen as a significant move towards fair treatment and competitive markets for family farmers and ranchers.
NFU President Rob Larew stated, "This action is a win for farmers that NFU was proud to champion. NFU has long battled against the unjust tournament system imposed on contract poultry growers." He emphasized that the rule introduces essential safeguards against certain practices by poultry processors, contributing to a more equitable marketplace. "We commend the administration’s meaningful steps to strengthen the Packers and Stockyards Act and remain committed to advocating for the fairness of all farmers," Larew added.
The newly finalized rule addresses issues within the poultry tournament system, which NFU has criticized for its unfairness, along with concerns over costly capital upgrades demanded from growers without clear benefits. Key elements of the rule include requirements for transparent base pay rates from processors, limits on payment variability to ensure financial stability, and full disclosure of risks associated with capital investments.
NFU has been actively pushing for reforms under the Packers and Stockyards Act to promote fair agricultural markets. This latest rule represents a third major advancement that NFU has collaborated on with USDA, building upon a previous rule from November 2023. That earlier regulation mandated comprehensive disclosures by poultry companies regarding contracts and pay calculations.
Larew noted, "This progress is an important step toward leveling the playing field, but the fight for truly competitive markets is far from over." He affirmed NFU's commitment to continue working with future administrations to create a transparent and fair marketplace for farmers and ranchers.
