WASHINGTON, D.C. (RFD-TV NEWS) — President Donald Trump has directed USDA to strengthen enforcement of the Packers and Stockyards Act as his administration reviews unfair practices in the meatpacking industry.
R.J. Layher, director of government affairs for the American Farm Bureau Federation, said the executive order calls for a report to the president within 60 days examining practices including undue preferences and predatory marketing.
“In September, President Trump signed an executive order that would look at strengthening and enforcing the Packers and Stockyards Act, which has been on the books since 1921,” Layher said.
He said the order directs USDA to examine practices that could affect livestock producers and poultry growers.
Updating Protections for a Changing Industry
Layher said livestock markets have changed significantly since the Packers and Stockyards Act was signed into law in 1921. The law gave USDA authority to regulate certain marketing practices involving meatpackers and poultry integrators.
“Livestock is marketed completely differently now than it was back then,” Layher said.
He pointed to three rules finalized during the previous administration that address protections for livestock producers and contract poultry growers.
Two rules specifically address contract poultry growers, while another applies more broadly to livestock producers and covered entities under the Packers and Stockyards Act.
Layher said the rules address contract transparency, retaliation, deception and payment structures for contract poultry growers.
“We want to make sure that those rules stay in place and are highlighted in the report that is sent to the president,” he said.
Farm Bureau Wants Existing Rules Maintained
Layher said Farm Bureau supports stronger enforcement of the Packers and Stockyards Act and wants to see the three rules remain in place.
He said USDA’s regulatory agenda has included proposed rescissions of the rules finalized during the previous administration.
Layher also pointed to the department’s action involving the poultry grower tournament rule, which addresses payment systems for contract poultry growers.
“We asked USDA, if you’re going to delay this or potentially rescind it, are you going to replace it with anything that is going to have meaningful protections for our livestock producers and poultry growers?” Layher said.
He said Farm Bureau wants the administration to provide meaningful protections if existing rules are delayed or withdrawn.
What the Order Could Mean for Producers
Layher said Farm Bureau hopes the executive order leads to increased enforcement and gives producers more protection when they believe they have been mistreated in business arrangements.
“One big thing that we would like to see out of this are those three rules remain intact,” Layher said.
He said stronger enforcement could give livestock producers and poultry growers more support when dealing with the companies they work with.
The report required under the executive order will examine the specified practices and provide the administration with information as it considers next steps.
