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The Biden administration recently announced a proposed regulation to revise the Packers and Stockyards Act to require more disclosures to contract poultry growers. These regulations would fully replace the proposed regulations announced by the Trump administration. The regulations being proposed by USDA are to combat a concern by USDA that poultry growers are not fully aware of the financial risks associated with flock placements and the tournament system. At the same time, there is a concern that growers potentially are making financial decisions involving improvements to houses without fully understanding the financial risks. The proposed rules would assist in combating that. The current administration’s proposed regulations are similar to efforts made at the end of the Obama administration to create transparency in the tournament system.
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