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
March pork gains lifted total meat production, but first-quarter output still ran below last year.
April 29, 2026 07:00 AM
·
Eric Weaver with UNL joins us to share about a promising new HPAI vaccine, early test results, next steps in development, and its potential impact on the livestock industry.
April 28, 2026 05:03 PM
·
Georgia Grown Marketing Coordinator Happy Wyatt has spent the past 20 years teaching young students about agriculture and its connection to their everyday lives.
April 28, 2026 02:57 PM
·
House lawmakers push toward a Farm Bill vote as debate grows over E15, Prop 12, and input costs, with farmers seeking certainty and policy updates.
April 28, 2026 02:42 PM
·
RFD News correspondent Frank McCaffrey spoke with the Texas Shrimp Association at the Port of Brownsville about the future of the USDA’s new Office of Seafood.
April 28, 2026 12:03 PM
·
When the stakes are high, proactive preparation and a firm command of the process are your most powerful tools for effective advocacy.
April 28, 2026 11:33 AM
·
