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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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August 2025

Wednesday August 27

10:00 am – 4:30 pm
Field Day: Farmer-Distiller Grain Connection
Wednesday August 27
10:00 am – 4:30 pm
Field Day: Farmer-Distiller Grain Connection
Paxton, IL 60957, USA

Join OGRAIN, Artisan Grain Collaborative, The Land Connection, and IDEA Farm Network for this unique field day tailored for farmers and distillers alike to learn in the field and at the distillery. Dallas and Will Glazik will lead attendees through Cow Creek Organic Farm’s organic fields and discuss proper food-grade grain handling. The day will end with a distillery tour, grain quality talk, farmer-distiller social event, and optional tasting at Silver Tree Spirits.

For details and to register, click here. 

September 2025

Monday September 1

All Day
Final Deadline for LSP's Farm Beginnings Course
Monday September 1
Final Deadline for LSP's Farm Beginnings Course

Beginning and prospective farmers are invited to apply to the Land Stewardship Project’s Farm Beginnings course, a year-long training program that focuses on the goal setting, marketing, and financial skills needed to establish a successful farm business. The Farm Beginnings course creates a space for folks to name their vision, acquire the tools and skills needed to make it happen, and become part of a community of support to help them succeed.  

The course will run from November 2025 through March 2026, with some additional educational opportunities to take place later in 2026. 

The deadline for applications is Sept. 1. Early bird applications submitted by Aug. 1 will receive a $100 discount if you are accepted into the class. Partial scholarships are available.

More details are at http://www.farmbeginnings.org or Annelie Livingston-Anderson at annelie@landstewardshipproject.org.

You can apply to the course here.

Friday September 5

9:00 am – 4:00 pm
Soil Health Field Day on the Cotter Farm: Austin
Friday September 5
9:00 am – 4:00 pm
Soil Health Field Day on the Cotter Farm: Austin
50203 205th St, Austin, MN 55912, USA

 Sign up today for a get-together down on Tom Cotter’s Farm. This field day brings together food companies, local farmers and other professionals in agriculture — a perfect opportunity for networking and discussion.
Hear from soil health experts, then board the Topless Bus to take a tour of Tom’s farm. A FREE TACO BAR LUNCH will featureTom’s own grass-fed beef, along with authentic, homemade tortillas and rice. Featured speakers include soil scientist Kris Nichols and agronomist Joe Ailts.
 
You can check out the field day flier here. For more details and to register, click here.

Saturday September 6

9:00 am – 5:00 pm
Soil & Food Health Field Day: Austin
Saturday September 6
9:00 am – 5:00 pm
Soil & Food Health Field Day: Austin
50203 205th St, Austin, MN 55912, USA

Details are here.

Monday September 8

7:00 pm – 8:30 pm
Anne Biklé in conversation with Ross Evelsizer: What Your Food Ate
Monday September 8
7:00 pm – 8:30 pm
Anne Biklé in conversation with Ross Evelsizer: What Your Food Ate
Pulpit Rock Brewing Company, 207 College Dr, Decorah, IA 52101, USA

Join Anne Biklé (co-author, What Your Food Ate: How to Restore Our Land and Reclaim Our Health) and NEIA RC & D Natural Resource Projects Director, Ross Evelsizer, for a conversation and Q & A session followed by a book signing. Everyone is invited to this free event sponsored by the Oneota Valley Literary Foundation, with support from Pulpit Rock Brewing and Dragonfly Books.
 
Details on the Sept. 8 event are here.

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