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Email Content: Poultry Industry News, Comments and more by Simon M. Shane

Withdrawal of Farmer Fair Practices Rule by USDA Upheld


The 8th Circuit Court of Appeals has ruled that the USDA was neither “arbitrary nor capricious” in withdrawing the Farmer Fair Practices Rule issued in the waning hours of the previous Obama Administration.

The Organization for Competitive Markets and two poultry contractors filed suit against the USDA. The Department withdrew the Rule within the first week of the current Administration.

The judges noted that the justification for withdrawing the Rule was, that as framed, the vague and ambiguous terminology would have generated protracted litigation if ranchers and farmers were to file frivolous lawsuits. The Farmer Fair Practices Rules if implemented would have inhibited vertical integration which is the cornerstone of U.S. livestock production and is pivotal to efficiency.

The USDA is evaluating new rules under the Packers and Stockyards Act to be released during 2019.

Copyright 2019 Simon M. Shane