Washington, D.C. – Today, Senator John Fetterman sent a letter to the U.S. Department of Agriculture (USDA) endorsing the “Fair and Competitive Livestock and Poultry Markets” and “Poultry Grower Payment Systems and Capital Improvement Systems” rules proposed under Packers & Stockyards Act (PSA) authority. By clearly identifying what constitutes unlawful competitive injury and unfair practices, these rules aim to safeguard small domestic poultry and livestock producers from the overpowering influence of large corporate interests.
“Our livestock and poultry markets have become so monopolistic that a small handful of corporations control nearly everything—from how your chicken is raised to how much it costs to put it on your dinner table,” said Senator Fetterman. “President Biden’s mission to dismantle big money control over corporate agriculture is embodied in these USDA rules. These changes begin to strip monopoly power from the few and give small producers a fair shot. Any opportunity for small producers to challenge Big Ag is a win for consumer power—adopting these proposed rules opens that door.”
The PSA was enacted in 1921 to promote effective competition and integrity in the livestock, meat, and poultry markets. It was a response to growing concerns about the exploitative practices of the “Big Five” meat packers. The PSA prohibits predatory practices by meatpackers and live poultry dealers to maintain market integrity and ensure fair competition, boosting economic stability for producers and maintaining top-quality domestic livestock.
Over a century later, Big Poultry controls all their own inputs and outputs, manipulating the market to eradicate feasible competition. The industry—the National Chicken Council—opposes any effort to promote a fair market, claiming these rules impose an anti-business regulatory agenda and could increase chicken prices,in an effort to maintain their dominance over the market. The USDA’s proposed rules aim to ensure fairer competition and transparency, requiring poultry companies to document fair comparisons between growers. Additionally, they address the inequities of the “tournament system” used by Big Poultry, which unfairly pits producers against each other. When the poultry companies provide all feed, genetics, vaccines, or other inputs, it’s simply unfair to compare their performance against each other, since those inputs determine the growers’ performance.
In the letter, Senator Fetterman wrote: “I can think of no clearer example of an “unfair” practice in the poultry industry than pitting growers in a regional market against each other. Similarly, I can think of no clearer “deceptive” practice than telling growers they will receive one price, then paying them another. Unfortunately, as the Poultry Grower Payment Systems and Capital Improvement Systems proposed rule clearly lays out, the current tournament system many growers are operating under does just these things. The USDA can and must do more to create a level playing field for these growers, and this rule does just that”
Under President Biden, the USDA is taking decisive steps to revise the PSA terms, combating harmful monopolization by a few livestock and poultry companiesand making chicken farming equitable. The USDA’s effort is part of a broader initiative to create a more equitable agricultural marketplace. Senator Fetterman’s letter pledges his full support for President Biden’s initiative and reaffirms his commitment to promoting a fair, open, and competitive agricultural marketplace.
Senator Fetterman has championed this agenda since he arrived in the Senate. Last year, Senator Fetterman introduced The Poultry Grower Fairness Act, which would modernize and streamline PSA enforcement. Under his bill, USDA would have expanded authority to address anti-competitive behavior in the poultry industry and could award reasonable attorney’s fees to put farmers on a level playing field against corporate legal armies employed by meatpackers.
Read the full letter here.
