WASHINGTON — The Congressional and Senate Chicken Caucuses sent letters to the US Department of Agriculture (USDA) Dec. 15, requesting a 180-day extension to the implementation period of the updated Packers and Stockyards Act, specifically the Transparency in Poultry Grower Contracting and Tournaments rule.
Published in the Federal Register on Nov. 28, the final rule allots a 75-day compliance period. Broiler processing companies and growers would therefore need to be in compliance by Feb. 12, 2024.
In the letter, the chicken caucuses pointed out concerns of the industry meeting the requirements in the allotted time, especially with three major federal holidays occurring during the period.
“The provisions in the rule requiring certain terms be included in contracts are so novel that it appears the industry could have to amend nearly every contract — tens of thousands in total — in just two months over three major federal holidays,” the House letter said. “By providing just 75 days to implement the rule, AMS has dramatically underestimated the number of people involved, hourly rates and time required of compliance officers, regulatory consultants, attorneys, executives and other services required to implement the rule. AMS also overlooks the massive disruption that will be caused if companies and growers must amend nearly every existing grower contract, especially if the same exercise must be done a second time in the event AMS issues additional Packers and Stockyards rules.”
The chicken caucuses asked for a minimum of 180 days to allow stakeholders and consultants to “thoroughly understand and comply with the rule’s many requirements.”
The House letter totaled 45 signatures, and the Senate letter included 19 signatures.
The Packers and Stockyards Act has sparked additional scrutiny from the industry.
Soon after the initial changes to the rules were announced, the National Chicken Council released a statement that the final rule would have a devastating financial impact on the US poultry industry by raising costs and administrative burdens.
On Dec. 13, over 60 agriculture organizations wrote a letter to President Joe Biden, voicing concern with the finalization of the Packers and Stockyards Act. The letter was signed by the American Grassfed Association, Land Stewardship Project, National Farmers Union, R-CALF USA, the United Food and Commercial Workers International Union and others. While the groups supported the effort to increase transparency and clarity, they said “the most essential aspects of the work to strengthen the P&S Act remain in limbo.”