Two farm-state Senators want the Department of Agriculture to change a rule in the Packers and Stockyards Act. Senate Republican Chuck Grassley of Iowa and Senate Democrat Jon Tester of Montana recently sent a letter to Agriculture Secretary Sonny Perdue requesting USDA “clarify an ambiguous proposed rule regarding the undue and reasonable preferences provision of the Packers and Stockyards Act.”
Grassley and Tester are urging USDA to ensure the new rule protects small livestock and poultry farmers from unreasonable practices of packers and poultry companies. In their letter, they outlined specific changes to address this proposed rule. The Senators say the current rule, “not only fails to address many of these abusive and unreasonable industry practices, but it actively establishes criteria insulating packers and poultry companies from scrutiny.”
The rule also appears to provide legal protection for packers who are able to justify a practice based on the need to save costs and reduce prices, or if their practices are deemed “customary” in the industry because they align with those of their competitors.