The USDA has announced that the Biden-era Poultry Grower Payment Rule will be delayed until December 31st, 2027. The Agricultural Marketing Service requires the delay to consider the estimated cost and policy issues involved.
The intent of the amendment under the Packers and Stockyards Act, finalized on January 16th, 2025, would have prohibited live poultry integrators from reducing a grower’s compensation based on tournament-rankings. The regulations would have required integrators to allow “fair compensation” and require additional disclosures, especially in relation to upgrades requiring capital investment.
Delaying the rule would apparently save integrators and contractors approximately $5 million in administrative costs over the first year.
Predictably, the delay in implementation of the Rule was supported by the National Chicken Council with Harrison Kircher, president of the Council, stating, “We applaud Secretary Rollins and the Trump Administration for their thoughtful review of this Biden-era regulation and for listening to chicken farmers across the country who oppose it.”
According to the NCC, the Rule would have been disruptive and “undermine a
longstanding performance-based compensation model”. In addition, the Rule could potentially have limited bonuses for the most productive contractors.
Any delay or recission of an onerous regulation that adds to the cost of production is considered appropriate since higher costs are invariably passed on to consumers or result in reduced domestic offtake and exports.