Agriculture Secretary Tom Vilsack has announced a new rule under the Packers and Stockyards Act, reforming the payment system used by poultry companies for contract growers and addressing unfair practices that burden growers with costly upgrades to poultry houses without clear benefits.
Key provisions of the Poultry Grower Payment Systems and Capital Improvement Systems Rule include:
- Requiring poultry companies to provide a clear base pay rate in contracts, prohibiting deductions, but allowing performance bonuses.
- Limiting payment variability to ensure financial stability for growers.
- Mandating a “duty of fair comparison” to ensure equitable performance-based pay.
- Requiring full disclosure of financial risks and rewards for capital improvements to growout houses.
This rule builds on a November 2023 rule requiring transparent pay disclosures and a July 2022 Justice Department Consent Decree addressing abusive payment practices in the poultry industry.
It is the third in a series of Packers and Stockyards Act updates under the Biden Administration aimed at combating unfair practices in the poultry and meatpacking industries.
