In the highly consolidated poultry industry, most growers operate under contracts that leave companies in control of production while growers shoulder the financial risk. Companies use the abusive tournament system to force growers to compete against one another for pay, even though outcomes are heavily shaped by the chicks, feed, and other inputs companies control.
Originally set to take effect in July, the rule would prohibit payment deductions based on rankings and give growers more predictable income. USDA has now delayed implementation until December 2027.
“This rule represents one of the most consequential updates to poultry contracting practices in decades and directly addresses structural imbalances that have long disadvantaged growers within highly concentrated poultry markets,” Farm Action wrote in its comment. “[Delaying implementation] would unnecessarily prolong well-documented harms to growers while preserving a status quo that the agency itself has already determined to be unjust.”
Farm Action also noted that Wayne-Sanderson Farms is already using a similar revised payment structure, showing the rule is practical and workable.
“Relief for poultry growers should not be delayed when the industry has already proven that reform is both practical and sustainable,” the comment notes.
Farm Action has long advocated for stronger protections for poultry growers, including prior comments in 2022 and 2024 calling for an end to abusive payment practices and greater transparency in contracts. While Farm Action continues to push for eliminating the tournament system outright, it underscored that this rule is an important and long-overdue step forward.
“Relief for poultry growers should not be delayed when the industry has already proven that reform is both practical and sustainable,” said Farm Action.
Farm Action Urges USDA Not to Delay Protections for Poultry Growers
Today, Farm Action submitted a public comment opposing the U.S. Department of Agriculture’s (USDA) delay of the Poultry Grower Payment Systems and Capital Improvement Systems rule, arguing the agency already has enough evidence to move forward.
In the highly consolidated poultry industry, most growers operate under contracts that leave companies in control of production while growers shoulder the financial risk. Companies use the abusive tournament system to force growers to compete against one another for pay, even though outcomes are heavily shaped by the chicks, feed, and other inputs companies control.
Originally set to take effect in July, the rule would prohibit payment deductions based on rankings and give growers more predictable income. USDA has now delayed implementation until December 2027.
“This rule represents one of the most consequential updates to poultry contracting practices in decades and directly addresses structural imbalances that have long disadvantaged growers within highly concentrated poultry markets,” Farm Action wrote in its comment. “[Delaying implementation] would unnecessarily prolong well-documented harms to growers while preserving a status quo that the agency itself has already determined to be unjust.”
Farm Action also noted that Wayne-Sanderson Farms is already using a similar revised payment structure, showing the rule is practical and workable.
“Relief for poultry growers should not be delayed when the industry has already proven that reform is both practical and sustainable,” the comment notes.
Farm Action has long advocated for stronger protections for poultry growers, including prior comments in 2022 and 2024 calling for an end to abusive payment practices and greater transparency in contracts. While Farm Action continues to push for eliminating the tournament system outright, it underscored that this rule is an important and long-overdue step forward.
Media Contact: Emma Nicolas, [email protected], 202-450-0094
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