CAMPAIGN FOR CONTRACT AGRICULTURE REFORM
a voice for contract farmers, ranchers and their communities

Why Amending the Packers and Stockyards Act is Important

1) Packers and Stockyards protection would be extended to all poultry farmers, not just those who raise the broilers.

The definition of a “poultry grower” in the present Packers and Stockyards Act (P&S Act) is “any person engaged in the business of raising and caring for live poultry for slaughter by another... .” This definition has been interpreted by the courts to mean that the P&S Act applies only to the broiler growers because the birds they care for go directly to a processing plant. The Act has been interpreted as not applying to breeder hen or pullet growers. *

The proposed poultry act will amend the P&S Act by deleting references to “slaughter,” so that pullet and breeder hen growers are also covered. The amended definition accurately reflects the integrated nature of the modern poultry industry where the total supply line for a processing plant - including pullet, breeder, and broiler farms - is tightly controlled by one company.

* Poultry production has several stages. Before a group of breeder hens are of laying age, they are raised on a pullet farm. After the pullets reach laying age, they are moved to a breeder farm where the hens produce eggs that are collected and trucked to the hatchery. Once the eggs hatch, the chicks are delivered to a broiler farm where they are raised until ready for processing.


2) USDA would be granted administrative authority to stop unfair practices in the poultry industry that matches its authority in the beef and pork industries.

The present Packers and Stockyards Act makes it unlawful for a livestock packer or live poultry dealer “to engage in or use any unfair, unjustly discriminatory or deceptive practice or device, or to give any unreasonable advantage to any particular person or locality.” However, USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) has no general authority to stop the unfair practices nor penalize the poultry dealers. As former GIPSA Administrator Jim Baker commented during his tenure, “We have the responsibility but not the authority.”

When violations of the Act are discovered in the livestock industry, GIPSA has the authority to take administrative actions, including holding hearings and assessing civil and criminal penalties. However, GIPSA does not have this administrative enforcement authority in the poultry industry.

When violations of the Act are discovered in the poultry industry, GIPSA can only issue an order to cease illegal conduct. In extreme cases, GIPSA can send the complaint to the Justice Department. >From the poultry company’s perspective, breaking the law and increasing company profits through fraudulent or deceptive practices carries little financial or legal risk.

The proposed poultry act will give all contract poultry growers the same legal protection under the Packers and Stockyards Act as other livestock producers. The proposed poultry act will help end the unfair practices in the poultry industry.

For more information, contact Steve Etka at 703-354-3303 Camp