Third Regulatory Reform for Contract Livestock Producers Finalized by USDA

U.S. Agriculture Secretary Tom Vilsack announced the third installment in a series of regulatory reforms intended to level the playing field for farmers who raise chicken, turkeys, hogs, cattle, and sheep under contract or foUr sale to meat and poultry processing companies. Under the Packers and Stockyards Act, this new reform will give chicken farmers better insight into companies’ payment rates for their birds, will institute stability and fairness in what is commonly known as the ‘tournament system,’ will provide farmers with key information on capital improvements the companies require farmers to make in order to keep or renew contracts, and give farmers stronger leverage when companies do not adhere to the rules.