USDA Rule May Make It Difficult For Farmers

Posted by Charles Bond.

My article is about the people who feed millions of Americans, farmers. Specifically, a ruling the USDA first tried to implement, but then decided to rescind. This ruling would have offered more protection for farmers who raise cows, pigs, and chickens for the largest meat producers in the United States. The USDA’s plan would have made it easier for farmers to sue those meat producers they are in contract with for unfair, discriminatory, or deceptive practices. This was a policy that was set to be enacted at the end of the Obama Administration but was put on hold until the Trump Administration took over; the USDA under the new administration decided to drop it. “Currently, several court rulings have interpreted federal law as saying a farmer must prove a company’s action harm competition in the entire industry before a lawsuit can move forward.” The farmer’s cannot just say they believe a company is aiming to cause harm; they must prove the company said this was their intent.  Passing the new rule would ease the burden of finding proof.

This new rule would have been extremely beneficial for chicken and pork farmers. “Chicken and pork producers must enter long-term contracts with companies like Tyson Foods and Pilgrim’s Pride that farmers allege lock them into deals that fix their compensation at unprofitably low levels and forces them deeply into debt.” Farmers are unaware of the repercussions of these deals until it is too late to do anything about them. The National Chicken Council President was strongly against this rule and thought the rule would have “opened the floodgates to frivolous and costly litigation.” Politicians are split on the ruling. Senator Pat Roberts was pleased with the rule being dropped stating, “It demonstrates the Trump administration’s commitment to promoting economic prosperity and reducing regulatory burdens in rural America.” Meanwhile Senator Charles Grassley criticized the rule being shot down saying ,“The USDA is the U.S. Department of Agriculture, not the U.S. Department of Big Agribusiness.”

This is a complicated issue, with reasonable arguments on both sides. However, it seems unreasonable not to have this rule. It is proven that meat producers exploit farmers across the board just so they can maximize profit and keep the farmers reliant on them for business. An argument made against the rule was that it opens the floodgate for farmers to bring cases against the companies, whether they have sufficient evidence or not. If the companies really were doing no wrong than they would not care because the cases would always go there way and secondly the ruling is only being implemented because so many farmers are claiming the companies are doing wrong and they have means to bring them to court. It really is a dicey issue, but ultimately the farmers should be allowed to take the companies court and have the law settle the disagreement.

Charles is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2020.

Source:

https://www.nytimes.com/aponline/2017/10/18/us/ap-us-farm-rules.html