Court Upholds USDA Move To Scrap GIPSA Rules

A petition by the Organization for Competitive Markets (OCM) seeking review of USDA's decision to withdraw the Obama-era Farmer Fair Practices Rules – also known as the Grain Inspection, Packers and Stockyards Administration (GIPSA) rules – was denied by the U.S. Court of Appeals for the Eighth Circuit. The rules were proposed in December 2016 during the finals days of the Obama administration, and would have made it easier for individual farmers to file suit against meat processors over alleged unfair, discriminatory or deceptive practices. Previously, courts had interpreted the Packers and Stockyards Act (PSA) as requiring proof of harm to competition across the entire industry in any such lawsuit, but the proposed rules sought to lower that legal threshold. USDA Secretary Sonny Perdue first moved to delay implementation of the rules before withdrawing them entirely in October 2017. In its annual regulatory agenda update released in September, the Trump administration signaled it intends to revisit the rules this spring. In rejecting OCM's petition, the court accepted USDA's argument that "the interim final rule and proposed regulations would result in protracted litigation that 'serves neither the interests of the livestock and poultry industries' nor USDA is a rational reason not to adopt a proposed change of course."