Source: NATIONAL SUSTAINABLE AGRICULTURE COALITION, 9/12/19


Consolidation of the livestock sector has severely damaged competitive markets, livestock producer livelihoods, and rural qualities of life. The National Sustainable Agriculture Coalition (NSAC) and our allies have long fought against this trend, and secured many significant victories for family farmers; ensuring, for example, that the 2008 Farm Bill require the Packers and Stockyards Act of 1921 (P&SA) to go through the rule making process. P&SA is the primary law governing livestock and poultry markets, and was designed to promote antitrust policies, and prevent consolidation and corporate control in the poultry and livestock industries. P&SA has several core elements that address many issues facing livestock and poultry farmers, including: competitive injury, undue practices and undue preference, and contract fairness.

Without strong regulations to enforce these provisions, however, producers have been left defenseless. The lack of regulation to support the P&SA – a result of congressional brinksmanship, stalling by the Administration, and agency inaction – has stymied the P&SA’s ability to fulfill its purpose and protect producers.

One proposed rule that could add much-needed enforcement, however, is currently undergoing the rule making process at the U.S. Department of Agriculture (USDA).

The proposed rule will address the so-called “undue preference” provision and could provide criteria to determine if there has been a violation of Section 202(b) of the P&SA, which prohibits “any undue or unreasonable preference or advantage to any particular person or locality in any respect” regarding livestock and poultry production contracts. The rule is expected to be released this fall and will have a 60-day comment period. Once released, NSAC will conduct an in-depth analysis and submit recommendations to the Administration in how to implement these regulations.

However, this is not the first attempt to rein in corporate control and curb the exploitation of producers through the administrative reform process. NSAC has continually fought alongside our members to level the playing field for contract livestock and poultry producers. As part of our campaign efforts, we submitted comments and led advocacy on the Grain Inspection, Packers & Stockyards Administration (GIPSA) proposed rule in 2010, and also commented and led advocacy efforts on an interim final rule on P&SA in 2017. Now that the opportunity to act on the undue preference provision is before us, NSAC is fighting for provisions that would allow for a more competitive and transparent market.

In this post, we detail the key issues that NSAC will be looking at and evaluating in the pending regulations.

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