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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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June 2022

Tuesday June 28

1:30 pm – 3:00 pm
'Farms, Not Factories' Webinar
'Farms, Not Factories' Webinar
Tuesday June 28
1:30 pm – 3:00 pm

How we build a system that stops factory farms and supports small and mid-sized farmers will be the focus of a webinar the Land Stewardship Project will be participating in on Tuesday, June 28, from 1:30 p.m.-3 p.m. CT. The webinar is being hosted by the HEAL Food Alliance, an LSP partner.

We hope you can join us for a conversation about how corporate power influences our current farm system, how LSP and others have taken on these battles and won, and what our vision for a farm system without mega-factory farms looks like.  

To register, click here.

7:00 pm – 8:30 pm
LSP Monthly Virtual Policy Organizing Meeting
LSP Monthly Virtual Policy Organizing Meeting
Tuesday June 28
7:00 pm – 8:30 pm

Join LSP as we launch our first of many Monthly Virtual Policy Organizing Meetings! On the fourth Tuesday of each month at 7:00 p.m. we will gather to learn about what is happening at the state, local, and federal level; take collective action together; dive into an issue campaign of your choice; and break out into regional groups to build relationships with other LSPers in your area. For more information, see https://secure.everyaction.com/yguSa_Wy8EukCc13XRjVmQ2.

Wednesday June 29

10:00 am – 5:00 pm
Volunteer Johnson-Su Bioreactor Construction Event
Volunteer Johnson-Su Bioreactor Construction Event
Wednesday June 29
10:00 am – 5:00 pm

T

This is the second year of a two-year research project through the Minnesota Department of Agriculture looking into creating on-farm compost recipes using the Johnson-Su Bioreactor design. Land Stewardship Project staff are working with five farms to build a total of 10 bioreactors in the month of June. We are looking for 3 to 5 member-volunteers for the days of June 7, 9, 15, 17, and 29. Details are here.

E-mail Shona Snater at ssnater@landstewardshipproject.org for more information and to sign-up as a volunteer.

July 2022

Wednesday July 6

4:00 pm – 8:00 pm
Farming in Karst Country
Farming in Karst Country
Wednesday July 6
4:00 pm – 8:00 pm

A special LSP workshop called “Farming in Karst Country” will highlight the intersection of soil-building farming practices, water movement, and karst geology. Local farmer presenters and karst geologists will share how practices like no-till, cover crops and intensive, rotational grazing can improve the health of the soil and underground streams. The Bishop family will host the event at Niagara Cave. The cost to attend is $20 for adults, $10 fo runder 16, and includes a cave tour and dinner. Space is limited to 75 participants. For details and to register, click here.

Tuesday July 12

6:30 pm – 8:00 pm
LSP Deep Canvassing Training
LSP Deep Canvassing Training
Tuesday July 12
6:30 pm – 8:00 pm

Deep canvassing is a candid, non-judgmental, two-way conversation where canvassers ask voters to share their relevant, emotionally significant experiences and reflect on them aloud. It is one of the most durable and proven forms of persuasion when talking to people who might hold differing beliefs than you and is going to be critical in creating the world we want and need.

Join the Land Stewardship Action Fund to learn about deep canvassing, what it is and why it’s important, and get trained on how to deep canvass so you’re able to powerfully participate in LSAF’s upcoming deep canvasses and put these important skills to use in your community. Register at https://secure.everyaction.com/f4vV9QoSbUWMe4UVzQFrVg2.

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