WASHINGTON, D.C. (RFD NEWS) — Two major farm organizations are urging USDA to reverse course after the department announced plans to rescind a Biden-era rule affecting poultry grower contracts.
The Poultry Grower Payment Systems and Capital Improvement Systems rule was scheduled to take effect this month, but USDA previously delayed its implementation and has now announced its intent to rescind it through the federal rulemaking process.
The rule would prohibit certain practices under the ranking systems used to compensate broiler growers and require poultry dealers to disclose specific financial information to producers.
In a joint statement, the American Farm Bureau Federation and National Farmers Union said they are “deeply troubled” by USDA’s decision to rescind the rule. The organizations argue the regulation would help protect poultry growers from retaliation by large processors while providing greater transparency and oversight in the payment system. They are urging President Trump and Agriculture Secretary Brooke Rollins to leave the safeguards in place.
The National Chicken Council, however, supports USDA’s proposal to rescind the rules. The organization says the regulations would have increased compliance costs, created legal uncertainty, and failed to provide meaningful benefits for farmers or consumers.
USDA has indicated it intends to formally rescind the rules through the federal rulemaking process.
