Western ranchers need swift completion of Packers and Stockyards Act rules

WORC joined allies across the nation to urge the USDA to quickly restore the Packers and Stockyards Act and protect our nation’s farmers and ranchers from unchecked corporate power.

On December 13th, 2023, WORC joined 61 allied organizations to send a letter to President Biden expressing concern that “that the pace of United States Department of Agriculture’s (USDA) progress on its Packers and Stockyards Act rulemakings could put them in jeopardy.”

The Packers and Stockyards Act, a 100-year-old law protecting farmers and ranchers from concentrated monopoly power in the livestock industry, successfully leveled the economic playing field for decades before the courts and lack of enforcement eroded its power. In July of 2021, President Biden signed a historic executive order on competition directing USDA to revitalize the Packers and Stockyards Act by issuing new rules to strengthen it. The USDA has since released the first phase of the rules concerning poultry producers, but has neglected to issue rules to protect cattle producers vulnerable to the consolidated corporate power of the four transnational meatpackers that dominate the industry.

“If large, powerful companies are going to be stopped from pushing out small producers and taking advantage of consumers, the USDA must complete its Packers and Stockyards Act rulemaking process…”
Joyce Evans

“If large, powerful companies are going to be stopped from pushing out small producers and taking advantage of consumers, the USDA must complete its Packers and Stockyards Act rulemaking process and address unfair practices like Alternative Marketing Agreements (aka: Captive supplies),” said Joyce Evans, a member of the Powder River Basin Resource Council and a 4th-generation rancher who has raised cattle for 50+years.

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Because the Biden administration has waited so late in their tenure to release the rules, they may be in danger of being turned over by a new administration, should they lose the 2024 election. The letter notes that the rules are “vulnerable to opponents of competitive agricultural markets” until they are finalized. Delays instigated by these opponents caused a similar attempt to strengthen the Packers and Stockyards Act to fail during the Obama-Biden administration. With the high rate of corporate consolidation over the beef industry, missing this opportunity could spell disaster for independent cattle producers.

“My small operation depends on good market prices,” said Jenna Van Horne, a Rancher and Member of Dakota Resource Council. “Strong rules, mandatory country of origin labeling, and a base price for my cattle would go a long way in making sure that I’m competitive against larger operations.”

“My small operation depends on good market prices. Strong rules, mandatory country of origin labeling, and a base price for my cattle would go a long way in making sure that I’m competitive against larger operations.”
Jenna Van Horne

Noting that this administration “has done more to fight monopoly power and enforce our antitrust laws than any in recent memory,” the letter applauds the Justice Department (DOJ) and Federal Trade Commission’s (FTC) work toward the EO’s directives to improve competition in the food and farm system. WORC and our allies also expressed appreciation for the work USDA has done toward the EO, including its “partnership with state attorneys general to address anticompetitive practices by dominant firms in agricultural supply chains.”

“To ensure our nation’s farmers and ranchers can thrive, USDA must restore the Packers and Stockyards Act by swiftly finalizing a strong set of rules,” the letter says.

“The USDA and the Biden Administration have made good faith steps for us to try to address market issues, but Congress needs to act now,” said Corey Hart, Rancher and member of Dakota Resource Council. We need more than 3-4 choices to sell to. Consumers have a choice, why shouldn’t producers.”