🐔New Regulations Impacting Poultry Grower Compensation and Practices
Poultry Grower Payment Systems and Capital Improvement Systems
Summary
This final rule by the United States Department of Agriculture's (USDA or the Department) Agricultural Marketing Service (AMS or the Agency) amends the Agency's regulations under the Packers and Stockyards Act, 1921 (P&S Act or Act). The Act protects fair trade, financial integrity, and competitive markets for poultry. The final rule prohibits certain payment practices under poultry grower ranking systems (commonly known as tournaments) in contract poultry production for broiler chickens, requires live poultry dealers (LPDs) to adopt policies and procedures for operating a fair ranking system for broiler growers, and requires LPDs to provide certain information to broiler growers when the LPD requests or requires the grower to make additional capital investments. These regulations will increase transparency and address deception and unfairness in broiler grower payments, tournament operations, and capital improvement systems.
Agencies
- Agriculture Department
- Agricultural Marketing Service
Business Impact
$$ - Med
The regulation outlines significant new compliance requirements for live poultry dealers (LPDs) regarding payment transparency and fair compensation practices that directly impact poultry growers' financial stability and operational decisions. Key provisions affect contracting practices, investment disclosures, and the operational standards of ranking systems that could alter compensation dynamics and profitability for growers.