May 30, 2022

US National Chicken Council criticises proposed USDA rule under Packers and Stockyards Act

The United States Department of Agriculture has announced a proposed rule under the United States' Packers and Stockyards Act that would do nothing to lower food prices, increase competition or reduce inflation, said the National Chicken Council (NCC).

"This is a solution in search of a problem," said NCC president Mike Brown. "The last thing the (US President Joe) Biden administration should be doing is pushing increased regulations, red tape and costs onto businesses at a time of record inflation and input costs, threatening food security and potentially raising grocery bills even further for Americans. There is a huge misunderstanding in this administration of how businesses operate. Everything this administration has touched has led to increased prices for consumers – whether its gas, home heating bills or infant formula. Chicken seems to be next.

"These proposals were determined to be poor policy ideas under the (US President Barack) Obama administration – and continue to be worn and tired ideas today."

All chicken farmers are provided the same quality of chicks, the same feed and access to veterinary care, according to NCC. Farmers who invest in more advanced facilities, as well as use the best management practices, will likely produce higher quality chickens more efficiently. Farmers receive a base pay per their contract and potentially a bonus, based on the health and quantity of the flock.

Raising chickens under contract is one of the best and most reliable sources of cash flow that helps keep families on the farm, NCC said. The contract provides farmers with guaranteed income, and insulation from market risks, such as feed costs, floods and droughts.

"It's ironic that these regulations are being proposed under the guise of promoting competition," Brown added. "The performance-based structure of how chicken farmers are compensated is literally the definition of competition.

"We are in the process of reviewing the 155-page proposed rule and we look forward to providing more detailed comments to the department in the near future."

- NCC