On July 1, 2026, the “Poultry Grower Payment Systems and Capital Improvement Systems” ruling is set to go into effect. The ruling was set forth by the USDA Agricultural Marketing Service to amend the Packers and Stockyards Act of 1921. The most impactful change predicted is how it specifically addresses the way contract broiler growers are paid.
The ruling requires live poultry dealers (integrators) to change the typical grower ranking systems, typically called “tournament pay”, to a system that establishes a minimum pay regardless of grower cost performance and allows for only positive pay incentives to be employed by integrators. For most integrators to meet this new requirement, it is expected that a standard minimum pay per pound of live broiler delivered to the processing plant will be established for all their growers. If you ask broiler growers, most will say they perceive this as a positive change, potentially making it easier to manage their businesses, and many will likely receive an increase in overall revenue.
But this begs the question: will it positively affect all growers all the time, and is this the best way to help growers? And further, what affects revenue more – pay per pound or pounds out the door? In this and two upcoming contributions to Southern Ag Today, we look at what is driving the broiler revenue bus, to what extent does it have control, and finally, just how much a small change can mean to a grower’s bottom line.