Compliance with Farm Bill Requirements Ensured

US - The 2008 Farm Bill established new requirements for swine contracts under the Packers and Stockyards (P&S) Act.
calendar icon 3 March 2010
clock icon 2 minute read

These requirements went into effect on June 18, 2008, upon passage of the Farm Bill. The Grain Inspection, Packers and Stockyards Administration (GIPSA) currently is reviewing contracts involving pork producers to ensure their compliance with the Farm Bill requirements.

The 2008 Farm Bill amended the Packers and Stockyard Act to require that swine contracts:

  • Allow swine growers to cancel growing or production contracts for up to 3 days after signing, or any date specified in the contract or growing arrangement (the contract must disclose method and deadline for cancellation);

  • Include a disclosure statement on the first page that clearly states whether additional large capital investments may be required of the grower during the term of the contract; and

  • Allow growers to opt out of arbitration provisions before entering a contract.

GIPSA is increasing its audits of swine production contracts to ensure their compliance with the Farm Bill requirements. The Agency is seeking civil penalties of up to $11,000 per violation when they find that swine contractors have not complied with the Farm Bill requirements.

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