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LSP Applauds USDA’s Step to Promote Transparency & Address Exploitative Poultry Contracting System

New Rule a Needed Move Toward Reform of Abusive Livestock Processing & Marketing Infrastructure

May 27, 2022

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SAINT PAUL, Minn. — The USDA’s proposal Thursday to address the highly controversial “tournament system” in poultry production is a positive, yet overdue, step forward as the agency seeks to address unfair competition and trade practices under the Packers and Stockyards Act, according to members of the Minnesota-based Land Stewardship Project (LSP).

“Corporate ag has monopolized all aspects of the livestock industry,” said Bonnie Haugen, a livestock farmer and LSP member from Canton, Minn. “It is taking our livelihoods, shrinking consumer choices and raising consumer costs. Corporate ag wants serfs, not independent farmers.”

Currently, poultry processors exert control over much of the process of raising chickens through take-it-or-leave-it contracts with growers. Under these contracts, processors provide inputs like chickens and feed to poultry growers. Poultry growers, who often take on debt to build growing facilities, have limited access to information on the real range of outcomes and risks they face under these contracts. Moreover, once enrolled in the contracts, the processors then determine the payments that poultry growers receive for their services by weighing the chickens and ranking farmers based on how much the chickens grew. Pay is generally determined based on how a farmer compares to other farmers, but farmers currently have little insight into this comparison. Growers have long complained that the so-called “tournament” system is ripe for abuse.

This proposed rule could provide transparency in an industry that often benefits large corporations by leaving producers in the dark, according to LSP policy organizer Sarah Goldman. The USDA is proposing requiring poultry processors to release  key information to farmers at several critical steps. For example, processors would be required to disclose details of the inputs they provided to each farmer and information about the input differences among farmers being ranked. Contracts would also be required to contain guaranteed annual flock placements and density. The USDA is also opening an inquiry into whether some practices of processors in the tournament system should be banned or otherwise regulated.

Thursday’s action is the first of three rulemakings that USDA will issue under the Packers and Stockyards Act under President Joe Biden’s executive order calling  for a stop to unfair, deceptive, discriminatory and anticompetitive practices in the meat and poultry industry.

The Land Stewardship Project is heartened by these recent USDA announcements, said Goldman, adding the caveat that in order to meaningfully address corporate consolidation throughout the livestock industry, the USDA needs to finish the other rules under the Packers and Stockyards Act that address additional abuses in the livestock sector. Congress also needs to pass significant reforms such as spot market requirements and reinstating the mandatory Country of Origin Labeling requirement that was proposed under initiatives such as the American Beef Labeling Act.

“This new rule proposal alone is not enough,” said Goldman. “To address the exploitation endemic to the poultry industry, tournament pricing should be banned outright. And to address the exploitation that characterizes all other aspects of the livestock industry, we need other significant reforms.”

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Category: News Releases
Tags: federal ag policy • livestock • livestock marketing • local meat processing • meat marketing • meatpackers • Packers and Stockyards Act • poultry • tournament system • USDA

Contact

Sarah Goldman, LSP organizer, e-mail, 612-400-6341

Upcoming Events

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September 2025

Wednesday September 17

9:00 am – 3:00 pm
Grazing for Invasive Species Management in Oak Savannas
Wednesday September 17
9:00 am – 3:00 pm
Grazing for Invasive Species Management in Oak Savannas
Myre-Big Island State Park, 19499 780th Ave, Albert Lea, MN 56007, USA

For details on this workshop, click here.

12:00 pm – 2:00 pm
Extending the Grazing Season with Cover Crops & Native Grasses
Wednesday September 17
12:00 pm – 2:00 pm
Extending the Grazing Season with Cover Crops & Native Grasses
Bluffton Resort & Bar, 2619 W Ravine Rd, Decorah, IA 52101, USA

This Ducks Unlimited workshop will feature a discussion of how livestock producers can utilize cover crops and native grasses to extend the grazing season. Featured speakers include Adam Janke, who will discuss Iowa State University’s research on CRP grazing, and Brian Dougherty of Understanding AG, who will discuss the economics of grazing cover crops. There will also be a presentation on Ducks Unlimited’s Advancing Markets for Producers Partnership. 
 
For details, see this flier. or call Ducks Unlimited’s Liam Bonk at 612-483-3577. To register, click here.

Thursday September 18

5:00 pm – 7:30 pm
Minnesota Women in Conservation: Conservation Land Walk in Dawson
Thursday September 18
5:00 pm – 7:30 pm
Minnesota Women in Conservation: Conservation Land Walk in Dawson
Dawson, MN

During this Minnesota Women in Conservation event, participants will walk around a “homestead” farm site — exploring areas and goals the landowner hopes to improve in the future, including pollinator habitat, perennial plantings, wind breaks, privacy/noise screens, water quality improvements, well sealing, and compost placements. Participants will hear feedback and recommendations from a conservation professional on potential programs that could assist the landowner in achieving those goals. 
 
This is a FREE event, but you must RSVP here to get the address. For more information and to RSVP, click here.

Saturday September 20

All Day
Farm Aid
Saturday September 20
Farm Aid
Huntington Bank Stadium, 420 23rd Ave SE, Minneapolis, MN 55455, USA

 Farm Aid is heading to Minnesota for the first time for its 40th anniversary festival on Saturday, Sept. 20, at Huntington Bank Stadium in Minneapolis. The event will launch a year-long celebration of four decades of impactful advocacy, historic cultural moments and unforgettable music.

Farm Aid 40 — a full day of music, family farmers, HOMEGROWN food and agricultural experiences — will feature performances by Farm Aid board members Willie Nelson, Neil Young (and the Chrome Hearts), John Mellencamp, Dave Matthews (with Tim Reynolds), and Margo Price, as well as Billy Strings, Nathaniel Rateliff & the Night Sweats, Trampled by Turtles, Waxahatchee, Eric Burton of Black Pumas, Jesse Welles, Madeline Edwards and more artists to be announced.

For details, click here.

Monday September 22

9:00 am – 3:00 pm
Twin Cities Urban Farm Bus Tour
Monday September 22
9:00 am – 3:00 pm
Twin Cities Urban Farm Bus Tour
Leatherdale Equine Center, 1801 Dudley Ave, St Paul, MN 55108, USA

Join University of Minnesota Extension, Hennepin County, and the Natural Resources Conservation Service on Monday, Sept. 22, for a bus tour of urban farms. We’ll discuss the challenges of city growing, including compaction, contamination, soil health, water management, and more. And we’ll learn about how growers are using soil health practices to mitigate these challenges. Stops will include: 

  • The St. Thomas research gardens, where researchers have been studying different methods for maintaining fertility in urban garden beds for 8+ years, and learning about how these different approaches impact soil health and water quality
  • Our Roots Community Garden, where gardeners have implemented a variety of soil health practices to remediate a brownfield contaminated site into a lush garden with healthy soil and plants. Gardeners here are also working to establish a micro forest at the site
  • Urban Roots farm at Rivoli Bluff. The team at Urban Roots has worked for years to establish a thriving farm at a former street sweeping site. They’ve tried many different practices to address compaction, replace invasive species with native plants to mitigate erosion, and to grow vegetables for their community. 

This is the first tour in a three part soil health bus tour series. Participants can sign up for just one, two, or all three tours. Register at https://z.umn.edu/vegetablebustours. The cost is $15 (flat fee, covers 1, 2, or 3 tours). There are more details in the attached flyer.

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