USDA’s newest P&SA update is a solid step towards reigning in discriminatory, retaliatory, and deceptive behavior by transnational meatpackers. Now, packers are lobbying Congress to get the rules defanged.
On March 5th, 2024, the USDA announced the finalization of its second phase of rulemaking under the Packers and Stockyards Act. “This final rule establishes clearer, more effective standards under the Packers and Stockyards Act (P&SA) for prohibited practices relating to discrimination, retaliation and deception in contracting,” reads the USDA announcement. The rule will go into effect on May 6th, 2024.
The Western Organization of Resource Councils members are heartened to see the USDA finalize these rules ensuring that livestock producers and poultry growers will be able to seek out the best offer for their products without fear of retaliation. The rules will also protect them from misleading statements or omissions of information in contracts, and affirm their rights to join together in associations or cooperatives. “These long-promised rules shall protect livestock producers from deception and discrimination in the marketplace,” said Gilles Stockton, a rancher and Northern Plains member from Grass Range, Mont. They’re just one of many ways the Biden administration has been working to restore competition to livestock markets.
“The packer cartel is so fearful that they will have to treat producers honestly, they are lobbying unscrupulous members of Congress to defund Packers and Stockyards enforcement. That tells us that these proposed rules are on the right track.”
Gilles Stockton, a rancher and Northern Plains member from Grass Range, Mont.
Restoring these basic protections is a victory for small and mid-sized cattle producers who have struggled for decades to remain viable as they’ve been pushed around by transnational meatpacking giants. These producers are important pillars in our communities providing income and jobs, supporting local businesses, and providing high quality American beef to consumers. Keeping these producers healthy and thriving is critical for vibrant rural economies and needs to be a continued focus for the USDA. The “People’s Department” should continue with all haste to finish what they started by banning or limiting the use of Alternative Marketing Agreements (AMA’s or captive supplies) which allow packers to manipulate cattle supplies and control prices paid to producers in future P&SA updates.
Keep up to date with grassroots organizing in the West with WORC’s newsletter.
The fight for fair markets continues as the meatpacking giants try to use their power in Congress to circumvent the USDA. Representative Andy Harris of Maryland, a longtime ally of Big Ag, already has tried and failed to sneak a rider defanging these rules into the FY24 Federal budget, and will likely try to do the same in the upcoming Farm Bill. “The packer cartel is so fearful that they will have to treat producers honestly, they are lobbying unscrupulous members of Congress to defund Packers and Stockyards enforcement,” said Stockton. “That tells us that these proposed rules are on the right track.”
Learn more:
Western ranchers need swift completion of Packers and Stockyards Act rules
Corrupt Pricing by Packers Putting Ranchers Out of Business
It’s time to move from merely “Promoting Competition” to “Restoring Competition”
Yes, I want to help WORC elevate Western voices and hold decision-makers accountable!