FOR IMMEDIATE RELEASE
Contact: Laura Zaks
National Sustainable Agriculture Coalition
press@sustainableagriculture.net
Tel. 347.563.6408
Release: NSAC Applauds Final Rule on Inclusive Competition and Market Integrity under the Packers and Stockyards Act
Washington, DC, March 5, 2024 – Today, the National Sustainable Agriculture Coalition (NSAC) applauded Secretary of Agriculture Tom Vilsack for the publication of a final rule: Inclusive Competition and Market Integrity Under the Packers and Stockyards Act. This is the final policy from USDA to modernize the Packers and Stockyards Act (P&SA) following a public comment period to a proposed rule in 2022, a process set in-motion by President Biden’s Executive Order on Promoting Competition in the American Economy.
“This is an important and long-awaited step to protect the rights and agency of livestock and poultry producers,” said Billy Hackett, NSAC Policy Specialist. “The deceptive and unfair tactics of corporate integrators in recent decades – tactics that writers of the century-old P&SA could not have predicted – have led to many instances of discrimination and retaliation or otherwise imbalanced contractual relationships against producers who until now had no explicit protections or avenues for recourse.”
The final rule addresses many ways that livestock and poultry markets unfairly exclude producers or otherwise limit their ability to obtain the full value of their animals. Notably, USDA chose to forgo protections for “market vulnerable individuals,” a novel and expansive category included in the proposed rule that may have protected growers whose ability to compete fairly was impeded in a highly concentrated marketplace on those grounds. Instead, protections are explicitly outlined for growers on the basis of protected class and cooperative formation.
“The release of today’s final rule is worthy of particular applause given the recent high-profile attempts by lawmakers to sink USDA’s efforts to strengthen the P&SA,” continued Hackett. “It’s affirming to see the federal government stand firmly on the side of our country’s farmers and ranchers to promote healthy competition in the market, and we urge members of Congress to remain steadfast at their side.”
In full, the newest Packers and Stockyards Act final rule will:
- Prohibit the adverse treatment of livestock producers and poultry growers based on protected class. It also prohibits discrimination against a livestock and poultry producer cooperative.
- Prohibit retaliation against producers and growers for their engaging in certain protected activities, including lawful communications or refusals to communicate, assertion of rights, participation in associations and cooperatives, and exploring or entering into a business relationship with a competing dealer.
- Prohibit false or misleading statements or omissions of material information in contract formation, performance, and termination.
- Prohibit regulated entities from providing false or misleading representations regarding refusal to contract.
- Supports USDA monitoring, evaluation, and enforcement of compliance with aspects of this rule through certain recordkeeping requirements.
Read the full text of the final rule here.
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About the National Sustainable Agriculture Coalition (NSAC)
The National Sustainable Agriculture Coalition is a grassroots alliance that advocates for federal policy reform supporting the long-term social, economic, and environmental sustainability of agriculture, natural resources, and rural communities. Learn more and get involved at: https://sustainableagriculture.net
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