In a March 5th announcement, the USDA detailed the Inclusive Competition and Market Integrity Rule under the Packers and Stockyards Act. The purpose is to “establish clearer, more effective standards under the Packers and Stockyards Act for prohibited practices in contracting”.
The Final Rule is one of a series initiated through an Executive Order on promoting competition in the U.S. economy.
The Rule is intended to: -
- Prohibit adverse treatment of livestock producers and poultry growers based on race, religion, national origin, gender, disability or age. The rule includes protection for cooperatives.
- Prohibit retaliation against producers and growers engaging in lawful communications, participation in associations and cooperatives or evaluating business relationships with competing packers or integrators.
- Prohibit false or misleading statements or omission of material information in contracts.
- Support monitoring, evaluation and enforcement of compliance by the USDA through records.
The Final Rule will become effective 60 days after publication in the Federal Register.
Predictably and justifiably Industry trade associations have commented negatively on the Rule.
It was characterized by the NCC as a manifestation of the Administration’s “anti-business regulatory agenda driven by far-left activists” The Council also noted the cost of compliance through additional record keeping.
The NAMI was skeptical that the Rule would increase competition and would have the undesirable effect of encouraging lawsuits over contracts.