A leading government accountability watchdog group on Monday ripped the Trump administration’s move to rescind Biden-era rules enacted to protect ranchers and farmers from abuse by meatpacking corporations and boost competition in the key industry.
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The US Department of Agriculture (USDA) has announced the reversal of three Biden administration rules under the Packers and Stockyards Act of 1921. One of the rules prohibits meatpackers, swine contractors, and poultry companies from retaliating against producers for actions like joining associations, speaking with regulators, or seeking other buyers.
Another rule mandated improved transparency in poultry grower contracts. The third rule‚ which was set to take effect this month, would have limited how poultry companies use the tournament payment system.
USDA said it plans to start the revocation process with proposed rulemakings scheduled for later this month and October.
Farm groups and antitrust advocates argue the move removes protections against monopolistic, deceptive, and retaliatory practices by dominant meatpacking and poultry companies.
“For years, meat corporations have abused hardworking farmers and ranchers. Now, the Trump administration is proposing to undo long-overdue progress made to level the playing field,” Emily Miller, staff attorney at Food & Water Watch, said Monday in a statement. “This move is a slap in the face to all those who have long fought for fair treatment in livestock and poultry markets.”
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The USDA’s move comes amid increased meat sector consolidation, which studies by Food & Water Watch, More Perfect Union, and others have found results in higher consumer prices and lower farmer profits.
Over the course of his two terms in office, Trump has boosted the meatpacking industry at the expense of worker rights, competition, and public health. His administration refused to issue binding rules requiring businesses to institute safety measures amid the Covid-19 pandemic, and he the Defense Production Act to classify meatpacking plants as critical infrastructure and force them to stay open even as the coronavirus ravaged industry workers.
Trump has also supported corporate monopolization in meatpacking, and his administration has shut down a Department of Justice antitrust probe of alleged industry collusion. Just four meatpackers control approximately 80% of the market. Meanwhile, cattle producers who in 1980 received 63 cents for every dollar paid by consumers for beef were receiving just 37 cents four decades later.
“We need robust enforcement of antitrust and fair trade practice laws to finally protect producers from meatpackers’ fundamentally unfair and illegal practices,” Miller said on Monday. “These rollbacks will do the opposite. We won’t rest until USDA does its job by putting producers above corporations.”
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