While USDA’s new livestock and poultry market final rule aims to address discrimination and promote competition, critics argue it could lead to excessive regulation and higher consumer prices.
The National Chicken Council (NCC) criticizes the rule as part of the Biden administration’s regulatory agenda, questioning the need for additional regulations given stable consolidation rates in the poultry sector.
The North American Meat Institute (NAMI) also opposes the rule, viewing it as an overreach of federal authority and warning of increased meat prices for consumers.
However, the National Cattlemen’s Beef Association (NCBA) takes a softer stance, acknowledging some improvements in addressing concerns but urging USDA to focus on the rule’s intended objectives.
American Farm Bureau Federation President Zippy Duvall said, “AFBF appreciates Secretary Vilsack and USDA’s finalization of another rule that helps bring transparency and fairness for farmers and ranchers who raise livestock and poultry under contracts with companies. This rule provides additional clarity regarding retaliation and deceptive practices in business dealings. It is a welcome complement to USDA’s Transparency Disclosures for Contract Poultry Growers rule implemented in February. Farm Bureau will continue to work with USDA to ensure a level playing field for the farmers and ranchers who keep America’s kitchens stocked.”
The final rule was published today in the Federal Register and will take effect after 60 days.
