Biden Expected to Sign Executive Order to Create More Competition in Meat Industry

An expected executive order by the Biden Administration this week could have a sweeping impact on agriculture, including creating a new rule aimed to increase competition in the meat industry and protect livestock producers.

While details of the executive order haven't been released by the White House, Reuters reported Tuesday that President Joe Biden plans to direct USDA to increase competition in the meat industry by creating a new rule under the Packers and Stockyards Act. The order would reportedly protect livestock producers' rights by clearing the way for new rules that would make it easier for farmers to sue companies they contract with over unfair, discriminatory or deceptive practices.

"It will help to reform the marketplace and balance the tremendous disparity in power between multinational meat packers and independent family-owned cattle farms and ranchers," said Bill Bullard, CEO of R-CALF USA . 

The plan also includes directing USDA to issue new rules and tighten the definition of what meat can be labeled a "Product of USA." Currently, companies can use the label whenever meat is processed in the U.S., even if that animal was born and raised outside the U.S. USDA announced this month it was conducting a top-to-bottom review of the "Product of the USDA" label, which would likely include a forthcoming rule on the topic. National Cattlemen's Beef Association (NCBA) supported USDA's announcement. 

The expected executive order comes weeks after cattle groups held an industry-wide meeting that created calls for change. 

“It was a historic meeting,” says Brooke Miller, president of U.S. Cattlemen’s Association. “And in my lifetime, nothing like this has ever happened before.”

Six livestock groups held a closed-door meeting, including individuals representing the U.S. Cattlemen’s Association, R-CALF USA, National Cattlemen’s Beef Association (NCBA), American Farm Bureau (AFBF), National Farmers Union (NFU) and the Livestock Marketing Association (LMA).

A Senate Ag Committee hearing last month also searched for answers amid accusations of a lack of transparency and anti-competitive practices in the cattle industry. The hearing revealed differing opinions about the cause and solutions to market manipulation claims. Those involved called it an unprecedented move.  

The executive order this week reported by Reuters also included news regarding a farmer's right to repair his or her own equipment. The report said Biden is expected to sign an executive order in the coming days to encourage the Federal Trade Commission (FTC) to limit the ability of farm equipment manufacturers to restrict tractor owners from using independent repair shops or completing some of the work themselves.