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USDA to Amend PSA Rules


In a reversion to 2017 policy the USDA will reintroduce proposed Packers and Stockyard Act (PSA) rules mooted during the Obama Administration. Among the proposed changes will be mandated changes in broiler grower contracts.  The USDA will introduce regulations to eliminate the tournament system that has been a subject of contention among some integrators and their contractors. 


The USDA will codify policy relating to action under the Packers and Stockyards Act.  The major change will be that aggrieved contractors will not need to demonstrate competitive harm to initiate legal action.  It is anticipated that the proposed changes will result in extensive litigation and will undermine the current harmonious relationship between contractors and integrators.  The proposed action by the USDA is a classic example of trying to fix a non-existent problem.


USDA and the Department of Justice will cooperate to investigate and counteract monopolistic action in the meat supply chain.  To this end, the current Administration will employ the Packers and Stockyards Act to eliminate what is alleged are deceptive or anti-competitive practices.