{"id":1330,"date":"2024-07-22T15:12:21","modified":"2024-12-12T09:59:29","slug":"fetterman-backs-usda-move-to-curb-big-money-interests-in-livestock-and-poultry-market","link":"https:\/\/www.fetterman.senate.gov\/fetterman-backs-usda-move-to-curb-big-money-interests-in-livestock-and-poultry-market\/","title":{"rendered":"Fetterman Backs USDA Move to Curb Big Money Interests in Livestock and Poultry Market"},"content":{"rendered":"

Washington, D.C.<\/b> \u2013 Today, Senator John Fetterman sent a letter<\/a> to the U.S. Department of Agriculture (USDA) endorsing the \u201cFair and Competitive Livestock and Poultry Markets<\/a>\u201d and \u201cPoultry Grower Payment Systems and Capital Improvement Systems<\/a>\u201d rules proposed under Packers & Stockyards Act (PSA) authority. By clearly identifying what constitutes unlawful competitive injury and unfair practices, these rules aim to safeguard small domestic poultry and livestock producers from the overpowering influence of large corporate interests.<\/p>\n

\u201cOur livestock and poultry markets have become so monopolistic that a small handful of corporations control nearly everything\u2014from how your chicken is raised to how much it costs to put it on your dinner table<\/b>,\u201d said Senator Fetterman. \u201cPresident Biden\u2019s mission to dismantle big money control over corporate agriculture is embodied in these USDA rules. These changes begin to strip monopoly power from the few and give small producers a fair shot. Any opportunity for small producers to challenge Big Ag is a win for consumer power\u2014adopting these proposed rules opens that door.\u201d<\/b><\/p>\n

The PSA was enacted in 1921 to promote effective competition and integrity in the livestock, meat, and poultry markets. It was a response to growing concerns about the exploitative practices of the \u201cBig Five\u201d meat packers. The PSA prohibits predatory practices by meatpackers and live poultry dealers to maintain market integrity and ensure fair competition, boosting economic stability for producers and maintaining top-quality domestic livestock.<\/p>\n

Over a century later, Big Poultry controls all their own inputs and outputs, manipulating the market to eradicate feasible competition. The industry\u2014the National Chicken Council\u2014opposes any effort to promote a fair market, claiming these rules impose an anti-business regulatory agenda and could increase chicken prices,in an effort to maintain their dominance over the market. The USDA\u2019s proposed rules aim to ensure fairer competition and transparency, requiring poultry companies to document fair comparisons between growers. Additionally, they address the inequities of the \u201ctournament system\u201d used by Big Poultry, which unfairly pits producers against each other. When the poultry companies provide all feed, genetics, vaccines, or other inputs, it\u2019s simply unfair to compare their performance against each other, since those inputs determine the growers\u2019 performance.<\/p>\n

In the letter, Senator Fetterman wrote:<\/b> \u201cI can think of no clearer example of an \u201cunfair\u201d practice in the poultry industry than pitting growers in a regional market against each other. Similarly, I can think of no clearer \u201cdeceptive\u201d practice than telling growers they will receive one price, then paying them another. Unfortunately, as the Poultry Grower Payment Systems and Capital Improvement Systems proposed rule clearly lays out, the current tournament system many growers are operating under does just these things. The USDA can and must do more to create a level playing field for these growers, and this rule does just that\u201d<\/b><\/p>\n

Under President Biden, the USDA is taking decisive steps to revise the PSA terms, combating harmful monopolization by a few livestock and poultry companiesand making chicken farming equitable. The USDA\u2019s effort is part of a broader initiative to create a more equitable agricultural marketplace. Senator Fetterman\u2019s letter pledges his full support for President Biden\u2019s initiative and reaffirms his commitment to promoting a fair, open, and competitive agricultural marketplace.<\/p>\n

Senator Fetterman has championed this agenda since he arrived in the Senate. Last year, Senator Fetterman introduced The Poultry Grower Fairness Act<\/i>, which would modernize and streamline PSA enforcement. Under his bill, USDA would have expanded authority to address anti-competitive behavior in the poultry industry and could award reasonable attorney\u2019s fees to put farmers on a level playing field against corporate legal armies employed by meatpackers.<\/p>\n

Read the full letter here.<\/a><\/p>\n","protected":false}}