USDA withdraws Packers and Stockyards Act rule

Published 9:30 am Wednesday, January 15, 2025

The USDA has withdrawn a proposed rule intended to make it easier for livestock and poultry producers to sue meat packers over discriminatory business practices.

The USDA had proposed allowing lawsuits even if the alleged unfair practice affected only one producer. In past lawsuits, courts have ruled producers must show the practice had market-wide effects.

The rule would have broadened the scope of the Packers and Stockyards Act, a law Congress passed in 1921 to prevent meat packers from manipulating the market at the expense of producers.

The USDA said in a statement Jan. 14 it received more than 13,000 comments on the rule. The outgoing administration said it was withdrawing the rule because of its complexity and the time it would take to finalize it.

By withdrawing the rule, the USDA preserves the right to bring it up later, according to the agency.

The Meat Institute, American Farm Bureau, National Chicken Council and National Cattlemen’s Beef Association opposed the rule.

They argued it would encourage lawsuits unrelated to making markets competitive and discourage meat packers from offering contracts tailored to individual producers.

NCBA Executive Director of Government Affairs Tanner Beymer said in a statement the rule would have undermined the free market. “We are pleased that USDA recognized their failed approach and withdrew this rule,” he said.

The rule was supported by smaller farm groups, such as R-CALF, which represents ranchers. R-CALF CEO Bill Bullard said Tuesday the rule would have put backbone in the Packers and Stockyards Act.

The rule’s withdrawal “leaves the Packers and Stockyard Act with little enforcement for producers,” he said.

Bullard said he hoped the Trump administration will resurrect the proposal. “In a best-case scenario, this is a long delay,” he said.

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