National farmers Union applauds federal action on "poultry tournament" system

WASHINGTON, DC – National Farmers Union recently commended the U.S. Department of Agriculture for finalizing the Poultry Grower Payment Systems and Capital Improvement Systems rule, which they described as "an essential step toward ensuring fair treatment and competitive markets for family farmers and ranchers."

Arkansas, Georgia, and Alabama are the top states for poultry production in the United States. Image credit - Mark Stebnicki / Pexels

“This action is a win for farmers that NFU was proud to champion. NFU has long battled against the unjust tournament system imposed on contract poultry growers,” said NFU President Rob Larew. “This rule places much-needed guardrails on poultry processors’ actions and will result in a fairer marketplace for family farmers. We commend the administration’s meaningful steps to strengthen the Packers and Stockyards Act and remain committed to advocating for the fairness of all farmers.”

The rule addresses longstanding concerns about the poultry tournament system, a payment practice that NFU has long criticized for its inherent unfairness, as well as the issue of requiring growers to make expensive capital upgrades without clear benefits. Key provisions of the rule require poultry processors to publish transparent base pay rates, limit variability in payments to provide financial stability and fully disclose the risks and rewards tied to capital investments.

NFU has consistently been at the forefront of advocating for reforms under the Packers and Stockyards Act to bolster fair agriculture markets. This rule marks the third significant improvement that NFU has worked on with USDA and builds on a prior Packers and Stockyards rule finalized in November 2023. This required poultry companies to make full disclosures to poultry growers about what they can expect if they sign a contract to produce for the company, as well as disclose details to existing growers about how their pay is calculated.

“This progress is an important step toward leveling the playing field, but the fight for truly competitive markets is far from over. We plan to continue this work with the new administration to build a marketplace that is truly fair and transparent for farmers and ranchers” said Larew.