Trade Groups Critizing New USDA Rules

Three more trade groups representing poultry, livestock and other meat producers are criticizing USDA rules released yesterday that the agency contends will “protect the rights of farmers” in their dealings with processors.The agency’s Grain Inspection, Packers and Stockyards Administration (GIPSA) said its Farmer Fair Practices Rules were designed to overturn the “most harmful practices hurting farmers.” The changes also provide “common sense protections” to restore fairness for farmers and protect farmers from anticompetitive business practices, the agency said in a news release.A similar set of rules were proposed six years ago in an attempt to settle disputes between nearly 1 million poultry and livestock producers in their negotiations with processors over payments for live animals. Many critics — including major industry groups — believe the additional government regulations could lead to more problems for farmers and other producers in their negotiations with processors.The National Chicken Council (NCC) said the proposals “threaten to upend the structure of the livestock and poultry industries” and raise the price of meat and poultry costs in addition to reducing the number of jobs in rural America.“(Chicken farmers) don’t want the government meddling on their farms and telling them how they should run their businesses,” said NCC President Mike Brown in a statement. “Business under the current contract structure has given thousands of farm families the opportunity to live in rural America and operate profitable businesses.  These rules, however, could lead to rigid, one-size-fits-all requirements that would stifle innovation, lead to higher costs for consumers and cost jobs.”The National Cattlemen’s Beef Association (NCBA) expressed similar concerns about the new rules damaging the marketing options of its members.“This rulemaking will drastically limit the way our producers can market cattle and open the floodgates to baseless litigation,” Tracy Brunner, NCBA president, said in a statement. “USDA is going well beyond their statutory limitations, limiting marketing options for a product that America is demanding. The fact of the matter is, we don’t trust the government to meddle in the marketplace. Cattlemen and women don’t appreciate (USDA) Secretary (Tom) Vilsack throwing a grenade in the building as he abandons it,” Brunner added.Officials at the North American Meat Institute (NAMI) also based their concerns on how the proposed rules ultimately could affect marketing agreements covering meat and poultry.“The practical effect of such a change will be to make it legally riskier to enter into marketing agreements, which in turn will affect supply of meat and poultry products produced in ways consumers are seeking,” said NAMI President and CEO Barry Carpenter in a statement. “(The rules) will not only limit consumer choice, it is a kick in the teeth of innovative, consumer-focused livestock and poultry producers who rely on these agreements to help manage business risk.The GIPSA proposals will face a 60-day period while USDA accepts and studies comments on the rules. The National Pork Producers Council has already issued a statement calling the new rules “an apparent attack on rural America for its role in helping elect Donald Trump as president.”