USDA Moves Forward on GIPSA Rules



National Hog Farmer reports: 


USDA is moving forward on the “Farmers Fair Practices Rules” regarding contracting practices for livestock and poultry. The department has sent to the White House Office of Management and Budget an interim final rule on competitive injury. 

This would eliminate the need for producers to provide proof of competitive injury to the entire industry in order to file a complaint. This overturns eight federal court rulings. There are also two proposed rules to address unfair practices and undue preference in violation of the Packers and Stockyards Act and poultry grower ranking systems.

Secretary of Agriculture Tom Vilsack said the USDA is leaving out a number of provisions that were proposed in the Grain Inspection, Packers & Stockyards Administration rule of 2010. These include proposals that would have prevented meatpackers from buying livestock from other packers, banned packers from entering into exclusive agreements with certain livestock dealers, and required packers and live poultry dealers to submit sample contracts to USDA for public review.

The reaction from producers and industry was immediate. The North American Meat Institute says, “It is irresponsible for USDA to advance this stale six-year-old rulemaking. The interim final rule as described will open a floodgate of litigation, up-end the established system for marketing cattle, pork, and poultry in the United States, and add costs at every step along the process from producers to consumers.”


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Source:  National Hog Farmer



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