Washington, D.C. — The U.S. Department of Agriculture (USDA) has announced that it will rescind three Biden-era Packers and Stockyards Act rules, designed to strengthen meat sector competition and protect farmers and ranchers from abusive meatpacker practices. Two of the rules had been in place for several years; the third was intended to go into effect this month. 

The three rules on the chopping block were designed to:

• Increase protections for livestock and poultry producers against discriminatory, retaliatory and deceptive trade practices that pervade the industry; 
• Promote poultry market transparency by requiring chicken companies to disclose critical information to contract growers before entering into and throughout the life of contracts;
• Substantively reform the tournament payment system that most contract poultry growers operate within to prevent chicken companies from engaging in fundamentally unfair and deceptive practices against growers.

The move comes amidst record meat sector consolidation, linked to higher consumer prices and low producer profits. Just four corporations control 85% of the beef market, 67% of the pork market, and 60% of the chicken market; virtually all (99.5%) of broiler poultry production value occurs under corporate contracts. 

In response, Food & Water Watch Staff Attorney Emily Miller issued the following statement:

“For years, meat corporations have abused hardworking farmers and ranchers. Now, the Trump administration is proposing to undo long-overdue progress made to level the playing field. This move is a slap in the face to all those who have long fought for fair treatment in livestock and poultry markets. We need robust enforcement of antitrust and fair trade practice laws to finally protect producers from meatpackers’ fundamentally unfair and illegal practices. These rollbacks will do the opposite. We won’t rest until USDA does its job by putting producers above corporations.”

Food & Water Watch research into the Economic Cost of Food Monopolies in the retail grocery, pork, dairy and egg industries finds increased consolidation results in high consumer prices and low farmer profits.

USDA plans to start the rollback process with proposed rulemakings slated for July and October of this year.