New US rules to protect animal farmers expected soon | Business News

Chicken and pork producers, for example, are often forced to enter into long-term contracts with companies like Tyson Foods and Pilgrim’s Pride that farmers claim to tie them to deals that fix their remuneration at unprofitable low levels and force them into large debt.

Previously, the big meat companies defended the contract system as fair, which requires farmers to provide the barns and labor to raise chickens while the companies provide chicks, feed and expertise to raise the birds. When the previous rule was lifted in 2017, the National Chicken Council trade group said it had opened the industry to a barrage of “frivolous and costly litigation”.

The USDA also plans to review the definition of what it means for meat to be labeled as a “product of the USA” under its rules. Currently, companies are allowed to use this label whenever meat is processed in the United States, even if the animals were born and raised in another country. USDA officials say that today, most grass-fed beef labeled as made in the country is actually from imported cattle. Agriculture Minister Tom Vilsack said he would like this label to accurately reflect what consumers expect when they read it.

The Department of Agriculture also plans to invest in new local and regional markets so that farmers have more opportunities to sell the animals and plants they raise. Critics say the big meat processing companies dominate the cattle, pigs and chickens market, making it difficult for farmers to get a fair price for the animals they raise.