Poultry Producers Score a Win with USDAs Rule Update
US Government Trims Down On Large Livestock Industries (USDA Reduces Scale of Major Meat Companies)
Here's the scoop on the latest USDA rule modification, aimed at giving poultry farmers a fair shake. The Alabama Contract Poultry Growers Association, along with the Organization for Competitive Markets and Competitive Markets Action, have weighed in on this game-changing policy.
The new rule is touted for its ability to stabilize poultry farmer payments and to inject transparency into the contract extension requirements. Key aspects of this rule include:-
- Fair Compensation: A cap on compensation sourced from the tournament system, ensuring that no more than 25% of a farmer's total earnings come from this source.
- Transparent Contract Extensions: Ensuring poultry producers are informed about the nature and extent of capital investments required for contract extension.
The USDA has also yanked the Fair and Competitive Livestock and Poultry Markets reform from the equation. This rule extended the definition of anti-competitive behavior beyond the Sherman Anti-Trust Act standard.
Taylor Haynes, President of the Organization for Competitive Markets, praised this move, stating, "We're pleased with Secretary Vilsack's finalization of these long-awaited regulations. Let's hope they stick."
Jonathan Buttram, President of the Alabama Contract Poultry Growers Association, voiced his support as well. "It makes sense to remove the tournament system as a significant factor in farmers' pay."
Vinnie Trometter, Vice President at Competitive Markets Action, spoke up in favor of the new rules, calling them a much-needed check on the reign of conglomerates in the chicken industry.
The Organization for Competitive Markets (OCM) is a non-profit based in Lincoln, Nebraska, dedicated to fostering competitive markets for farmers and rural communities. Competitive Markets Action (CMA), based in Washington, D.C., champions policy changes that lead to more sustainable agriculture and competitive markets.
In essence, this rule change aims to tidy up poultry market practices, making them clearer and more equitable to protect farmers from exploitation by large corporations. It's about leveling the playing field and giving poultry farmers the representation they deserve.
- The USDA's rule update not only aims to boost poultry farmers' earnings but also focuses on wealth-management for farmers, as demonstrated by the cap on compensation from the tournament system.
- In addition to the focus on poultry, the rules also concern business regulations, such as the transparency required for contract extensions, aiming to diminish the influence of conglomerates in the chicken industry and promote fair finance practices.
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