Source: MEATINGPLACE, 11/16/11

Congress is moving to block the rules for marketing livestock and poultry being prepared by the U.S. Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration (GIPSA).  An appropriations bill approved by House and Senate negotiators sets a deadline that USDA may not be able to meet in finalizing its proposed rules.

The full House and Senate are expected to pass the agricultural appropriations bill before the end of the week and send it to President Obama for his signature.  The bill would cut off funding for development of the new rules on Dec. 9.

Portions of the hotly debated “GIPSA Rule” have been submitted to the White House Office of Management and Budget for review.  These portions represented a step back from the more sweeping rules proposed by USDA in June 2010 and strongly opposed by meatpacking and poultry organizations and companies.

The bill now going through Congress would limit USDA’s rulemaking process to the items specified in the 2008 Farm Bill, blocking proposed rules on the definition of “competitive injury” and compensation of poultry growers.

“For more than a year, Congress has expressed its frustration with the ... USDA’s failure to stay within the framework of the Farm Bill,” said J. Patrick Boyle, president of the American Meat Institute.  “This funding measure is a reflection of Congress’ bipartisan position.”

Supporters of the proposed rule criticized the latest action by Congress.

“This is just another example of how corporate influence has eliminated opportunities for independent livestock producers in the United States,” said Bill Bullard, chief executive of R-CALF USA,  which represents many cattlemen.

'Competitive injury'
In its latest version of the GIPSA rule, USDA had dropped a provision on “competitive injury” that would have made it easier for livestock and poultry producers to sue feedlots, meatpackers and poultry processors.  However, USDA had indicated that it might still come forth with a proposed rule.  USDA spokesperson Courtney Rowe said the funding ban would prevent the agency from doing so.

Also scaled back in USDA’s latest version were rules on how poultry companies paid the farmers who raise chickens and turkeys for them.  The funding ban would apparently eliminate those proposed rules.
Still in play are the proposed rules on matters specified in the 2008 Farm Bill.  These include arbitration, notification to poultry growers of suspension of delivery of birds, criteria for capital investment by poultry grower as required by the processor, and time allowed to remedy breach of contract.

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