Studies have shown this type of federal interference in cattle markets will limit the way producers may market their cattle and stifle innovation that has driven beef demand, rewarded cattle producers and benefited consumers.

On Jan. 14, Agriculture Secretary Tom Vilsack announced reforms to the Packers and Stockyards Act (PSA), which he said are intended to level the playing field for farmers who raise chicken, turkeys, hogs, cattle, and sheep under contract or for sale to meat and poultry processing companies.

According to the USDA release, the rule will give chicken farmers better insight into companies’ payment rates for their birds, will institute stability and fairness in what is commonly known as the ‘tournament system,’ will provide farmers with key information on capital improvements the companies require farmers to make in order to keep or renew contracts, and give farmers stronger leverage when companies do not adhere to the rules.

“During my time as Secretary of Agriculture, time and again USDA has been confronted with the stories of farmers who lost their life’s savings or went bankrupt because of an unfair system they entered into when they agreed to raise animals for a major meat conglomerate. It is USDA’s job to advocate for farmers, and these regulatory improvements give us the strongest tools we’ve ever had to meet our obligations under the Packers & Stockyards Act,” Secretary Vilsack said.

Previous rules under the Biden-Harris Administration include:

Transparency in Poultry Grower Contracting and Tournaments, finalized in November 2023, which requires Live Poultry Dealers —typically large processing companies — to give critical information about terms of their agreements to the poultry growers with whom they contract to raise birds.

Inclusive Competition and Market Integrity under the Packers and Stockyards Act, finalized March 2024, which prohibits discrimination on the basis of certain other basic characteristics and bans companies from retaliating against farmers over basic activities like communicating with government agencies, joining producer or grower associations, and asserting legal and contractual rights; it also offers protection against deceptive contracting that are false, misleading, and result in harm to producers.

In addition, USDA announced its withdrawal of the proposed Fair and Competitive Livestock and Poultry Markets rule under the Packers and Stockyards Act (PSA).

The news release said the agency pulled the rule, which received more than 13,000 public comments, “due to the complexity and length of time needed to finalize that regulation.”

Both National Cattlemen’s Beef Association (NCBA) and the Meat Institute were relieved by the withdrawal having not been in favor of the rule since it was proposed in June.

“We are pleased that USDA recognized their failed approach and withdrew this rule,” said NCBA Executive Director of Government Affairs Tanner Beymer. “NCBA will continue advocating for sound market principles and we look forward to working with the next Administration on enhancing profitability opportunities for America’s cattle farmers and ranchers.

“As proposed, the rule was designed to trigger lawsuits that would have limited the use of alternative marketing arrangements,” says Meat Institute President and CEO Julie Anna Potts. “Studies have shown this type of federal interference in cattle markets will limit the way producers may market their cattle and stifle innovation that has driven beef demand, rewarded cattle producers and benefited consumers.”

The new rule is to take effect on July 1, 2026, following publication in the Federal Register.