USDA Proposing Changes to Packers and Stockyards Act
WASHINGTON, DC – USDA recently announced pending action related to three proposed rules regarding the Packers and Stockyards Act.
According to a press release, the Department will begin work on rules to support the enhancement of the 100-year-old law by proposing a new rule to strengthen enforcement of unfair and deceptive practices; develop a new poultry grower tournament rule; and, repropose a rile clarifying that a party need not demonstrate harm to competition to bring action against a packer.
American Farm Bureau Federation economist Michael Nepvoux says they support the move.
“The bills do require that USDA institute a mandatory minimum level of negotiated cash trade for cattle. From AFBF perspective, it’s very important that that is done on a regional basis, if you are going to have any kind of mandate.”
The group also considers USDA’s move to look into establishing a contract library, which would help producers have a better understanding of what kind of contracts are out there, would be helpful as sellers would have more information in negotiating contracts with packers.
(SOURCE: All Ag News)