USDA announced a third installment in a series of regulatory reforms under the Packers and Stockyards Act, updating the agency’s tournament rule system.
Ag Secretary Tom Vilsack says that the change was made based on producer feedback.
According to Vilsack, “We were told by producers that the rule should provide greater insight into a company’s payment rates under the tournament system. That in the past, tournaments would allow either increases in compensation or deduction from the baseline pay under an agreement and within a tournament. The rule that we announced is one that will end the capacity to reduce the base pay, but would continue to allow obviously for bonuses to be paid based on the competitive nature of the tournament. Producers also indicated that they were deeply concerned and wary about the variability that existed within payment rates, within specific tournament activities. This provides and directs that no more than 25% of the contract can be based on that variability and difference based on the tournament. Producers also indicated to us that they needed more information and greater stability when it came to the level of inputs that would be distributed in connection with the tournament system. This will basically provide that stability and greater information.”
Sec. Vilsack says that every change made under the Packers and Stockyards Act has been done to strengthen the systems already in place, including this latest one aimed at creating more level and fairer playing field for the poultry industry.
The American Farm Bureau has reacted to finalized USDA Poultry Tournament Rule.
“This rule takes a step in the right direction, including requiring companies to provide insight into payment rates and details on capital improvements as part of a contract renewal. The final rule will benefit contract poultry growers nationwide... We stand ready to work with the new administration and Congress to emphasize the importance of leveling the playing field for farmers, and we will oppose any future legislative or regulatory efforts to weaken or destabilize protections for America’s contract, poultry growers,” AFBF President Zippy Duvall stated.
