NASHVILLE, TN (RFD NEWS) — A proposed USDA poultry payment rule could change contract broiler pay, but Alabama Extension professor Dennis Brothers says the financial impact would not be the same for every grower.
The rule would amend the Packers and Stockyards Act and require poultry companies to change how contract growers are paid. Integrators could no longer use negative performance-based adjustments that reduce grower pay.
Instead, growers would receive a guaranteed minimum base pay rate, regardless of individual farm performance. Companies could still offer positive incentives, but they would not be required to do so. Although the rule was originally scheduled to take effect on July 1, 2026, implementation has been delayed until at least December 31, 2027.
Brothers compared two farms over 17 flocks using a flat $7.45-per-hundredweight base rate. The lower-performing farm would have gained 2.9 percent in revenue, while the higher-performing farm would have lost about 1.4 percent.
The results show why growers may view the proposal differently.
Farm-Level Takeaway: A guaranteed base pay system may improve revenue stability for some broiler growers, but stronger-performing farms could lose incentive-based income.
Tony St. James RFD News Markets Specialist
ASFMRA’s Chad Hertz joins us to discuss farmland trends, economic pressures facing producers, and how outside influences are shaping today’s land market.
“Irresponsible Lending Has No Place in Government Programs,” the U.S. Department of Agriculture said in a press release.
U.S. Wheat Associates is expanding into global fish feed markets, with early gains in South America and new opportunities emerging in Ecuador’s shrimp industry.
Andy Tauer from the National Pork Board discusses efforts to boost pork demand and how the industry is responding to trade restrictions related to pseudorabies.
Dr. Robert Ellis joins us to discuss economic challenges in agriculture, available resources for farmers, and ways producers can evaluate practices to strengthen their operations.
Strong export demand is supportive, but higher freight costs may pressure basis and grain movement margins.
