Proposed USDA delay signals uncertainty for poultry grower payment rule
National Chicken Council supports delayed implementation of the Poultry Grower Payment Systems and Capital Improvement Systems final rule.
The US Department of Agriculture's Agricultural Marketing Service is proposing to delay the effective date of the Poultry Grower Payment Systems and Capital Improvement Systems final rule published in the Federal Register on Jan. 16, 2025, to allow time for further consideration of possible actions that may be taken regarding the disposition of the rule. The current effective date is July 1, 2026. AMS is proposing to delay the effective date to Dec. 31, 2027.
This final rule by USDA's AMS amends the agency's regulations under the Packers and Stockyards Act, 1921. The act protects fair trade, financial integrity and competitive markets for poultry. The final rule prohibits certain payment practices under poultry grower ranking systems (commonly known as tournaments) in contract poultry production for broiler chickens, requires live poultry dealers (LPDs) to adopt policies and procedures for operating a fair ranking system for broiler growers, and requires LPDs to provide certain information to broiler growers when the LPD requests or requires the grower to make additional capital investments. These regulations aim to increase transparency and address deception and unfairness in broiler grower payments, tournament operations and capital improvement systems.
National Chicken Council President Harrison Kircher said, “We applaud Secretary Rollins and the Trump administration for their thoughtful review of this Biden-era regulation and for listening to chicken farmers across the country who oppose it. NCC strongly supports the administration’s commitment to cutting regulatory red tape and returning decision-making to farmers and the businesses that sustain rural America.
"The Biden administration finalized a regulation six days before President Trump took office that threatened to dismantle an efficient and successful industry model that has worked well for decades and helps keep chicken affordable.
"The Poultry Grower Payment Systems and Capital Improvement Systems rule would effectively ban bonuses for the best chicken farmers. Eliminating this performance-based compensation system would pay all farmers the same, regardless of hard work, investments, housing conditions, or bird welfare practices. It would drive experienced farmers out of the industry and reduce efficiency and competition in rural markets."
“Simply put, the rule is un-American.”
As AMS noted in its announcement, this rule could cause farmers to produce broilers less efficiently and increase production costs as a result. "Even a very small change in efficiency could result in relatively large increases in the cost of producing broilers," the agency said, which in turn could drive up consumer costs.
"We applaud the administration’s decision to revisit this burdensome regulation, strongly encourage its delay, and urge its full recission," Kircher said.
Sources: USDA AMS; National Chicken Council
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