Mixed comments on rule calling for transparency in poultry industry on whether it goes too far or not far enough.

Jacqui Fatka, Policy editor

August 10, 2022

5 Min Read
Baris KARADENIZ/iStock/Thinkstock

USDA’s Agricultural Marketing Service is extending the comment period for its proposed rule titled Transparency in Poultry Grower Contracting and Tournaments for an additional 15 days through Aug. 23, 2022. The proposed rule published in the Federal Register June 8, 2022, with comments originally due on or before August 8, 2022.

USDA is taking these steps to help ensure the integrity of the Federal rulemaking process and to ensure all parties have the opportunity to fully comment. As of August 9, 229 comments have been filed at www.regulations.gov.

“There is fear throughout the meat and poultry industry as we saw earlier this year at two separate Congressional hearings where witnesses did not testify due to concerns of retaliation,” says Secretary of Agriculture Tom Vilsack. “But it is still critical that we hear the full story, so we are highlighting the option for comments to be provided anonymously.”

The National Chicken Council had requested an extension in a June 29 letter to Vilsack, however, the 15 days falls well below the requested 180 days after publication of additional rules planned to be unveiled by this administration as it relates to poultry growers.

USDA has implied in the questions posed by the Advanced Notice of Proposed Rulemaking that future rulemaking could effectively eliminate the use of the tournament system in the poultry sector, explains NCC. They said additional time was needed to consider the economic, legal and operational impacts that the proposed rule and ANPR would have on all stakeholders.

Information regarding the proposed rule and commenting process is also now available in a recorded webinar, posted on the AMS website. The webinar provides information regarding the proposed rule to protect American poultry growers from abuses and enhance competitiveness in U.S. livestock and poultry markets. Information is included in the webinar to instruct anyone who wishes to comment but may want to do so anonymously.

“We fully respect the ability for all parties to communicate and share their views—with each other, with third parties, and with USDA,” adds Vilsack. “However, it is paramount that all parties respect different viewpoints and guard against coercive actions that compromise the free flow of facts and viewpoints into important agency actions.”

“We take the public comment process seriously and want all members of the public to freely express their views on our proposed regulations. I am very interested in hearing from those with knowledge of any party prohibiting the free expression of views during the public comment process,” says Vilsack.

Comments filed

The American Farm Bureau Federation submitted comments on USDA’s proposed poultry marketing disclosure requirements.

“AFBF appreciates USDA’s efforts to increase transparency in the poultry industry. A strong relationship between integrators and farmers is crucial to ensuring America’s families have access to safe, affordable food. Relationships are built on openness and trust, however,” says AFBF President Zippy Duvall.

“Integrators have lopsided control over the poultry growing process, which creates enormous financial pressure and unfair burdens on America’s farmers. Modernized regulations will help address those challenges and allow growers to make better-informed decisions by giving them more access to important information about supplies, stocking densities and disruptions. We look forward to working with USDA to create a more level playing field for America’s poultry growers.”

USDA has announced in press releases and in the 2022 Spring Regulatory Agenda its intent to conduct rulemaking regarding the Proposed Rules entitled, “Unfair Practices in Violation of the Packers and Stockyards Act” and “Clarification of Scope of the Packers and Stockyards Act.” NCC requested that USDA extend the comment period of the Proposed Rule and ANPR until at least 180 days after the official publication of the additional rules.

“NCC finds it extremely difficult to ascertain the full impacts – economically, legally, and operationally – of the Proposed Rule and ANPR, without the opportunity also to consider the other proposed rules USDA is preparing for release according to the 2022 Spring Regulatory Agenda,” NCC states in its June 29 letter.

In comments filed by Charles Postles, a poultry producer who said he had been farming for 45 years, he opposed the proposed rule. "The present compensation methods encourage competition and reward those producers that work hard to be as conscientious and efficient as possible. The proposed rule would actually discourage producers from making their farms more efficient," he writes. "I do not need the federal government bureaucracy to mettle with the opportunity I have to try to make a profit producing safe and affordable food for the American consumer."

Meanwhile, other comments indicate the rule does not go far enough. "Regarding reforms to the Packers and Stockyards Act, there is one glaring failure in the proposal. While there are some good qualities to the proposal, like guaranteeing farmers a certain number of birds and a certain number of times they will receive birds, the proposed rule does not go far enough. Farmers must be guaranteed a firm base price, and any bonuses should be paid by the corporation, not taken from neighbors’ paychecks," comments Robert Haslag

Separate commenting available through DOJ

Separately from the comment process under the proposed rule, USDA underscore that complaints of undue or unreasonable prejudices or disadvantages or retaliation can be reported through the USDA-DOJ joint complaint portal: farmerfairness.gov. Reports filed through the portal will be received by the Packers and Stockyards Division (PSD) of the USDA and DOJ, which may refer violations to the USDA’s Office of the Inspector General as appropriate. Tips, complaints or concerns through the USDA-DOJ joint complaint portal can be made anonymously and, if contact information is provided, confidentiality will be protected to the fullest extent possible under the law.

Individuals may also report potential tips, complaints, and concerns to PSD via the PSD Hotline at 1-833-Dial PSD (1-833-342-5773) or directly to the USDA’s Office of the Inspector General or 202-690-1202.

About the Author(s)

Jacqui Fatka

Policy editor, Farm Futures

Jacqui Fatka grew up on a diversified livestock and grain farm in southwest Iowa and graduated from Iowa State University with a bachelor’s degree in journalism and mass communications, with a minor in agriculture education, in 2003. She’s been writing for agricultural audiences ever since. In college, she interned with Wallaces Farmer and cultivated her love of ag policy during an internship with the Iowa Pork Producers Association, working in Sen. Chuck Grassley’s Capitol Hill press office. In 2003, she started full time for Farm Progress companies’ state and regional publications as the e-content editor, and became Farm Futures’ policy editor in 2004. A few years later, she began covering grain and biofuels markets for the weekly newspaper Feedstuffs. As the current policy editor for Farm Progress, she covers the ongoing developments in ag policy, trade, regulations and court rulings. Fatka also serves as the interim executive secretary-treasurer for the North American Agricultural Journalists. She lives on a small acreage in central Ohio with her husband and three children.

Subscribe to Our Newsletters
Feedstuffs is the news source for animal agriculture

You May Also Like