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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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May 2025

Thursday May 15

5:30 pm – 7:30 pm
MN Women in Conservation
Thursday May 15
5:30 pm – 7:30 pm
MN Women in Conservation
42652 County Rd 7, Belview, MN 56214, USA

NOTE: REGISTRATION IS CLOSED FOR THIS EVENT
 
Come out and play with MNWiC and Renville County Soil and Water Conservation District. Tour Iverson Tree Farm, learn from other women land stewards, and meet local Master Gardeners and conservation professionals who can help with your own land dreams.
 
For details and to register, click here.
 
 

Saturday May 17

11:00 am – 5:00 pm
Community Plant & Seed Swap
Saturday May 17
11:00 am – 5:00 pm
Community Plant & Seed Swap
Lift Bridge Brewing, 1900 Tower Dr W, Stillwater, MN 55082, USA

Lift Bridge Brewing Co. and Sustainable Farming Association are partnering to host a free seed and plant swap and fundraiser at Lift Bridge’s taproom in Stillwater. Vendor opportunities available. 
 
Details here.

Tuesday May 20

7:00 pm – 9:00 pm
Webinar on Agrivoltaics: Sheep Solar Grazing Producer Panel
Tuesday May 20
7:00 pm – 9:00 pm
Webinar on Agrivoltaics: Sheep Solar Grazing Producer Panel
Zoom Virtual

Participants will hear from sheep producers about their experiences, along with the benefits and challenges of grazing sheep under solar panels. This webinar is part of a series about cattle and sheep solar grazing and growing forages or grain crops under solar panels.
 
For details and to register, click here.

Thursday May 29

9:00 am – 12:30 pm
Storytelling for Sales: Digital Marketing for Sustainable Farmers
Thursday May 29
9:00 am – 12:30 pm
Storytelling for Sales: Digital Marketing for Sustainable Farmers
Zoom Online

Storytelling for Sales: Digital Marketing Best Practices to Get Your Farm’s Next Customer is designed to help farmers grow their customer base by sharpening their storytelling and digital marketing skills—whether they’re selling through farmers’ markets, CSAs, or direct-to-retail. This Greener Pastures and Meet the Minnesota Makers workshop will cover how websites and social media can actually convert viewers into buyers to creating content that builds community loyalty.

This workshop is also designed for ag educators, professionals, and partner organizational staff who support farmers directly and want to be well-versed on the marketing best practices to support direct-to-consumer farms. 

For details and to register, click here.

Saturday May 31

10:00 am – 12:30 pm
Multi-species Pasture Walk
Saturday May 31
10:00 am – 12:30 pm
Multi-species Pasture Walk
872 320th Ave, Frederic, WI 54837, USA

The NW Wisconsin Graziers Network, River Country RC&Dand UW-Madison Extension invite you to a multi-species pasture walk hosted by JohnsonFamily Pastures LLC. The farm is located five miles east of Frederic in PolkCounty. This educational event willemphasize direct marketing, multi-species grazing, part-time family agricultureand silvopasture development. Light snacks and refreshments will be provided.

TheJohnson Family Pastures farm is home to Chris and Tamara Johnson and their twochildren. They raise grass-fed beef, silvopastured goats, and recently raised anumber of other species. The farm consists of about 160 acres of gently rollingpastures, silvopasture, and forest. Use of both temporary polybraid fencing andhigh tensile permanent fences allow for rotational grazing of small ruminants andout-wintering of beef cattle. Use of long-term farm transition strategies, cost-shareprograms, silvopasture development with goats, regenerative grazing, cattlehandling facility and bale grazing will be discussed along with answering anyand all questions from pasture walk participants.

An extensive and diversified direct marketing programhas been developed by Tamara and Chris that has included farmer markets, e-maillists, newsletters, website ordering, on-farm freezer storage, and other strategiesand tools to support direct sales and services for their customers.  Come and learn all about their successfulapproach.

For more information,contact Chris Johnson at 920-960-4475 or Lynn Johnson 715-225-9882 at NW Graziers.

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