R-CALF USA endorses USDA’s livestock market rule

New rule aims to protect independent cattle producers

R-CALF USA, America’s leading advocate for independent cattle producers, has voiced strong support for the USDA’s newly proposed rule under the Packers and Stockyards Act (P&S Act) of 1921. This rule, proposed on June 28, 2024, aims to strengthen protections against unfair trade practices in the livestock and poultry markets.

According to the USDA’s Agricultural Marketing Service, the rule defines unfair practices as those that harm both individual market participants and the overall market.

R-CALF USA CEO Bill Bullard emphasized that this rule is critical to halting the ongoing decline of the U.S. cattle industry by offering legal protections against practices from the concentrated meatpacking industry that negatively impact producers.

While supporting the USDA’s interpretation of the Packers and Stockyards Act, R-CALF USA also suggested key improvements to ensure stronger enforcement.

The group recommended removing the competitive injury standard and introducing a financial threshold for initiating enforcement actions.

Additionally, R-CALF USA advocated for eliminating the justification of “independent legitimate business reasons” for unfair practices.

With these changes, they believe the rule will ensure that individual producers are protected from abusive market conduct, regardless of whether the harm extends to the broader market.

These recommendations are intended to create a more predictable and consistent enforcement process, providing much-needed security for cattle producers and ensuring fairness in the livestock market.