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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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February 2023

Thursday February 2 – Saturday February 4

GrassWorks Grazing Conference
GrassWorks Grazing Conference
Thursday February 2 – Saturday February 4

See https://grassworks.org/events/grazing-conference for details.

Thursday February 2

1:00 pm – 7:00 pm
Winona County Well Testing Screening
Winona County Well Testing Screening
Thursday February 2
1:00 pm – 7:00 pm

Supporting farmers who are using sustainable practices keeps our drinking water clean. On Thursday, Feb. 2, the Minnesota Well Owners Association and the Minnesota Ground Water Association will be holding a free well water testing screening clinic in western Winona County.

To participate, collect a cup (8 ounces) of water from
your well in a clean plastic or glass container and bring it to the Saint Charles Community Center. Results will be provided to you within 20 minutes.

For more information, check out this flier.

MNWOO StCharlesClinic.pdf
5:30 pm – 8:30 pm
LSP Farm Transition Planning Course: Session 2
LSP Farm Transition Planning Course: Session 2
Thursday February 2
5:30 pm – 8:30 pm

…Are you a farm family or landowner thinking about the future or next steps for your farm?

…Are you interested in planning for the next generation of farmers on your land?

…Do you have a spouse/partner helping to make these decisions? Are you both on the same page?

…Are you ready to begin the planning process but don’t know where to start?

THE WORKSHOPS WILL FOCUS ON: 

  • Values and Vision;  
  • Financial,  tax, and legal considerations; 
  • Options for farm transitions; 
  • Resources to guide the planning process,
  • Communication tools. 

YOU WILL COME AWAY WITH:

  • Tools to use that will help gain clarity around your future planning
  • Next steps toward creating a farm transition plan
  • Ideas and advice from other farmers and professionals 
  • Networks and support to continue to share and learn
  • Individualized support

Session One: Thursday, Jan. 26: The focus will be on values and vision. In addition, we will be getting to know one another, discussing expectations for the course, and understanding where folks are in the transition planning process.

Session Two: Thursday, Feb. 2: The focus will be on financial planning. Presenter Joy Kirkpatrick, a Succession Outreach Specialist for the University of Wisconsin Center for Dairy Profitability, will share her 29 years of experience working with farm families as they assess their financial needs for retirement and how that impacts their farm transition.

Session Three: Thursday, Feb. 9: The focus will be on legal issues in planning a farm transition. Jason Wagner, an attorney with Wagner Oehler Ltd., will share his experience and knowledge regarding legal aspects that need to be considered when planning a farm transition.

Session Four: Thursday, Feb. 16: The focus will be on communications and intergenerational considerations which are critical to a successful farm transition and that are often overlooked.

Session Five: Thursday, Feb. 23: The focus will be on long -term care issues. Kate Graham, an attorney with an elder law focus, will share her knowledge and experience of what needs to be considered when planning long-term care and how a farm transition can be impacted.  

Session Six: Thursday, March 2: The focus will be on integrating all that has been discussed and sharing resources (people, organizations, and materials) that are available to help continue the farm transition planning process. The goal is for each family to create individual next steps to continue the farm transition planning process once the course is over.

To register, click here.

Friday February 3

9:00 am – 10:30 am
2023 Minnesota Legislative Priorities Overview
2023 Minnesota Legislative Priorities Overview
Friday February 3
9:00 am – 10:30 am

Join public officials, partners, and members of the Land Stewardship Project to hear about LSP and LSP partner organizations’ priorities for the 2023 Minnesota legislative session. 
 
Presentation at noon and an optional Q + A portion at 1 p.m. You can register here.
 
Questions? Contact LSP Policy Manager Amanda Koehler at akoehler@landstewardshipproject.org or 612-400-6355.

Monday February 6

8:30 am – 1:30 pm
Crop, Livestock & Soil Innovation Conferences Workshop
Crop, Livestock & Soil Innovation Conferences Workshop
Monday February 6
8:30 am – 1:30 pm

The Land Stewardship Project is a co-sponsor of the 2023 I-90 & Highway 14 Tour CLASIC. Network, learn, and get inspired with area farmers and regional farming innovators as we discuss current trends for improving productivity and profitability in crop and livestock operations utilizing soil-healthy practices. The Crop, Livestock, and Soil Innovation Conferences (CLASIC) is made up of two tours in Minnesota, traveling along Interstate 90 and Highway 14, consisting of several stops.

Click this link for more details and a complete listing of workshops. Each venue’s program is unique and varied — be sure to check them all out and register for multiple events.

The speaker for the Feb. 6 event will be Dean Sponheim, a fourth-generation farmer from Mitchell County, Iowa. He began strip-tilling in 1999, aerial applying cover crops in the fall of 2012, and started a cover crop seed business in 2014 and no-tilling corn and soybeans in 2019.

To register for the Feb. 6 workshop, click here.

View Full Calendar

Recent Posts

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  • Line 3 Environmental Damage & State Regulatory Failure January 12, 2023
  • ‘Exploring Conservation on Rented Farmland’ Online Workshop Jan. 24 January 3, 2023
  • Our Minnesota Food & Farm Campaign Platform December 22, 2022
  • Changes Ahead for LSP in 2023 December 18, 2022

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