Re-entering a battle that dates from the Obama era, the USDA said on Tuesday it would modify its livestock marketing regulations to make it easier for producers to win complaints that they were treated unfairly by meatpackers. At present, producers must demonstrate a harm to the market in general. Under the revision, harm to one producer would suffice as proof of an unfair practice.
“Today’s proposed rule is for clear and transparent standards that markets function fairly and competitively for consumers and producers alike,” Agriculture Secretary Tom Vilsack said.
The meat industry said the proposed rule would promote litigation and disrupt marketing agreements and bonuses paid to producers who raise animals with specific attributes, such as grassfed or no-antibiotics. “Secretary Vilsack has tried these changes before,” said the Meat Institute, a trade group, referring to Vilsack’s tenure as Obama’s USDA chief. The Trump administration killed that proposal in 2017.
“Family farmers and ranchers continue to face unfair practices at the hands of monopolistic meatpackers, and they need P&S [Packers and Stockyards] Act rules that are clear, durable, and enforceable,” said the National Farmers Union in welcoming the proposal.
The proposal was the fourth from the Biden administration to modify fair-play rules in livestock marketing. Two have been finalized.
A USDA fact sheet on the proposal is here.
A pre-published copy of the proposed rule can be found here.