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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

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.

June 2025

Saturday June 21

1:00 pm – 4:00 pm
Farm-Scale Deep Winter Greenhouse Tour
Saturday June 21
1:00 pm – 4:00 pm
Farm-Scale Deep Winter Greenhouse Tour
Owl Bluff Farm, 12314 County Road 4 Houston, MN 55943

The University of Minnesota Extension Regional Sustainable Development Partnerships (RSDP) and Owl Bluff Farm will co-host an open house to celebrate the completion of the state’s first farm-scale deep winter greenhouse. The event, held on the farm about 45 minutes east of Rochester, is free and open to the public. RSVPs are required at z.umn.edu/OwlBluffOpenHouse.

Wednesday June 25

2:00 pm – 5:00 pm
LSP-PFI Grazing Field Day at Hoosier Ridge Ranch
Wednesday June 25
2:00 pm – 5:00 pm
LSP-PFI Grazing Field Day at Hoosier Ridge Ranch
Hoosier Ridge Ranch, 15998 Wabasha County Rd 26, Altura, MN 55910, USA

Over the last 50 years, livestock have left many farms. Eric Heins is doing the reverse: bringing cattle – and their poop, pee and hooves – back to his land. Come see how Eric is using his Normande-shorthorn crosses in a variety of grazing situations. During this Land Stewardship Project-Practical Farmers of Iowa field day, you can view permanent pasture, where Eric (like everyone) is battling the cool-season grass takeover. You’ll also learn how Eric is using his cattle in cover crop mixes, prairie and woodlands.

Since purchasing the farm in 2020, Eric has converted the cropland to pasture. He also custom-farms a diverse rotation of crops, covers and small grains on neighboring farms, including an established prairie on Iowa Department of Natural Resources land. A possible bonus: Eric is hoping to have virtual fence collars by the time of the field day, but no guarantees!

A meal featuring Hoosier Ridge Ranch burgers will follow the field day.

See & Discuss

  • Cash-flowing the conversion to pasture on owned versus rented cropland
  • Stockpiling pasture for winter grazing
  • Mechanical buckthorn clearing for silvopasture
  • Grazing agreements on DNR prairie and neighboring cropland
  • A sudangrass mix after a canning pea crop
  • An extended rotation with oats, barley and Kernza

For details and to register, click here.

Saturday June 28

4:00 pm – 8:00 pm
LSP's Boots & Roots: A Celebration of Land & People
Saturday June 28
4:00 pm – 8:00 pm
LSP's Boots & Roots: A Celebration of Land & People
Dream Acres, Co Hwy 8, Spring Valley, MN 55975, USA

Join Land Stewardship Project members and supporters to kick-start the Driftless summer with an evening of good food, good music, and good times. We’ll have activities for all ages that will get you out in nature, exploring the connection between our region’s farms and your community’s food, land, and water. Bring a side or dessert to share for dinner, and the Dream Acres wood-fired oven will provide locally-sourced pizzas and flat breads. Dinner will be followed by live music and contra dancing by the Crater City String Band.  

To reserve a spot, click here.

Camping sites are available at nearby Masonic Park and Forestville Mystery Cave and Lake Louise State Parks. Camping at Masonic is rustic,first-come-first-serve, free, and does not require a reservation. Fillmore County, who manages the park, only asks that you call the dispatchers at507-765-3874 when you arrive with your vehicle information and phone number in case of emergency. State Park reservations cost $25 a night and can be made online.

July 2025

Tuesday July 15

5:00 pm – 8:00 pm
Organic Fruit & Vegetable Field Day
Tuesday July 15
5:00 pm – 8:00 pm
Organic Fruit & Vegetable Field Day
1805 Dudley Ave, Falcon Heights, MN 55113, USA

Join U of M researchers and Extension for updates on organic fruit and vegetable research and tour the Student Organic Farm and the Minnesota Agricultural Experiment Station in Saint Paul. Topics include: organic insect management, integrating livestock into vegetable farms, new crops for Minnesota, irrigation strategies, and more. Free to the public.
 
For details and to register, click here.

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