Backers of a new federal rule said it will increase fairness for livestock and poultry producers, in North Carolina and across the country.

The U.S. Department of Agriculture has finalized its Inclusive Competition and Market Integrity rule, under the Packers and Stockyards Act this month. Advocates said it is a big step in addressing discrimination and even deception smaller livestock and poultry producers have faced for decades, from corporations they contract with to bring their products to market.

Aaron Johnson, policy co-director for the Rural Advancement Foundation International-USA, explained some of the long-standing concerns the rule addresses.

"One thing that we have documented in past reports is the tendency of integrators to present the terms and the potential benefits of the contracts they're offering during the recruitment process with growers in what we would assess to be deceptive terms," Johnson explained.

In addition to misleading contract terms, he noted some farmers were recruited within months of a plant being closed. He contended with the new rule, such issues can be prevented. It will go into effect 60 days after it is published, and producers will be able to use a Farmer Fairness Portal to submit their concerns to the Packers and Stockyards Division.

North Carolina poultry farms produce almost 8 million turkeys annually. Johnson emphasized the rule will work in tandem with another recent rule giving poultry farmers a more accurate estimate of the income they will receive with a contract. He believes even more could be done to strengthen protections for livestock and poultry producers in the performance-based payment system known as the "tournament system."

"One thing that hasn't been addressed by these two rules, as of yet, is really robust and targeted reform of the tournament system itself," Johnson stressed. "One thing I would highlight is that the tournament itself is one of the systemic facilitators of retaliation."

By "retaliation," he asserted some farms have had their contracts cut short and have even been driven out of business. He predicted more rules addressing issues in the tournament system and manipulation of cattle prices are expected.


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From North Dakota to Texas, the beef raised on farms goes through a production process controlled by four major companies and independent ranchers hope a proposed federal rule gives them more power to act if they feel they have been ripped off.

The U.S. Department of Agriculture said the plan it unveiled last week would provide clarity regarding unfair market practices under the Packers and Stockyards Act.

Aaron Shier, government relations director for the National Farmers Union, said in the past, some courts have said there needs to be proof the broader market is harmed. He noted the update addresses the problem within the long-standing law.

"It has many producer protection elements," Shier explained. "Over the long history of this law, that has gotten confused and muddled. And so, this proposed rule is meant to set the record straight on that issue."

Supporters said not only does it help prevent smaller farmers from going out of business but potentially gives consumers a fair shake on the prices they pay for meat and poultry. Industry groups like the Meat Institute are criticizing the move, saying it would set meat production back decades by encouraging litigation while actually hurting consumers.

The Institute also questioned such efforts when cattle prices are at record levels. Shier suggested there are specific examples of questionable tactics beyond current market dynamics.

"Failure to pay," Shier emphasized. "If a meatpacker, someone in the market fails to pay a producer, that is something USDA has consistently taken action on."

With more clarity under the law, policy analysts said there might be more consistency regarding court decisions when individual farmers push back against an industry giant. Shier pointed out the ultimate goal is to avoid lawsuits with this action and similar steps recently taken by the USDA setting a tone to foster market competition. A public comment period is the next step ahead of the rule becoming final.


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Family farm advocates are calling for cuts in federal subsidies to large animal feeding operations - technically known as Concentrated Animal Feeding Operations - in the Farm Bill being debated in Congress.

Iowa family farmers want more support for conservation programs that benefit smaller agriculture operations.

Right now, CAFOs can qualify for as much as $100 million every year to reduce some of the environmental damage they can cause.

That's taxpayer money that Barb Kalbach - a fourth-generation family farmer in Adair County, Iowa - said could be put to much better use by small family farmers on their land.

"Things like filter strips along streams and rivers," said Kalbach, "which helps with erosion, and it also helps with nitrates and other pollutants entering the water."

CAFO operators contend they use the federal money to defend against environmental damage and that they're always looking for cleaner, safer ways to raise high-quality meats while responding to increased consumer demand.

As a board member for the Campaign for Family Farms and the Environment, Kalbach said she is calling for more support of conservation programs that would help family farmers. But she said she is just as adamant that the long-standing rules governing CAFOs are changed.

"Industrial-scale factory farms, even though they are industrial scale, they do not have to go by industrial standards," said Kalbach. "They go by ag standards. And that's why we have the problem with pollution that we have. That should be addressed in the Farm Bill."

The Farm Bill saw its first action in the House Agriculture Committee May 23.

The House version of the measure also proposes $30 billion in cuts to SNAP benefits over the next decade, including $170 million in Iowa.

For 15 years, U.S. restaurant chains have pledged to stop using gestation crates for pregnant pigs but a new report from an animal welfare group showed many are still dragging their feet.

Devon Dear, institutional outreach manager for the group Animal Equality, said too many restaurants still source their pork from suppliers who lock pregnant pigs in cages so small they cannot turn around. Eleven states, not including New Mexico, have already made the practice illegal, for good reason, Dear emphasized.

"Pigs are under lots of stress in crates," Dear explained. "More stress means more antibiotics; more and more antibiotics means higher chances of antibiotic resistance, and stressed animals are less healthy."

Hog production is not a major contributor to New Mexico's ag statistics, but the state does have its fair share of fast food restaurants. Dear pointed out some big chains have moved away from crates including McDonald's, Wendy's and Chipotle. The report lists Denny's, Chick-fil-A, Dunkin and KFC among 13 companies it contends have not been aggressive enough in reducing their use of crates.

The report comes as Congress is debating an update to the Farm Bill. As proposed, Animal Equality's analysis shows it would have negative effects for animals across the board. She hopes the report will put the inhumane treatment of pregnant pigs in the spotlight.

"One thing we do want to emphasize is that these corporate commitments predate any version of this Farm Bill," Dear noted. "Many are back from 2009, 2012, so irrespective of what happens with the Farm Bill, consumers expect companies to do better for animals."

U.S. pork production is highest in Iowa, while New Mexico is better known for crops such as chili peppers, corn, pecans and onions.