The proposal would modify USDA guidelines on fair play in livestock and poultry sales. Activists said farmers are out-muscled by big packers who dominate meat processing. The 2008 farm law required action on the issue.

 

Agriculture Secretary Tom Vilsack told agribusiness lobbyists on Tuesday (May 25) that changes to marketing rules would be proposed in June. He said the changes would allow USDA to respond better to farmers' complaints.

 

Two farmer advocacy groups identified the proposals as dealing with "undue preference" in livestock purchases by meatpackers and clarifying the contractual rights of producers who feed poultry for large processors.

 

Most US poultry, pork and beef is produced under contract to companies such as Tyson Foods Inc., Cargill, JBS USA, National Beef Packing Co. and Smithfield Foods Inc.

 

Producers said they have limited recourse if packers treat them unfairly. Meat processors said existing antitrust and competition laws are effective.

 

Vilsack cited ongoing Obama administration hearings into competition in the agricultural sector before mentioning the imminent release of proposed revisions. "It's encouraging the secretary is mentioning them," said Kathy Ozer of the National Family Farm Coalition, referring to the proposed rules.