The USDA issued a guidance document on how the Department will enforce the final rule on “Undue and Unreasonable Preferences and Advantages” under the Packers and Stockyards Act as it composes new rules to bring fairness to the marketplace for farmers and ranchers.

National Farmers Union (NFU) continues to strongly support strengthening the Packers and Stockyards Act to protect livestock producers from unfair treatment and practices by meatpackers and integrators. NFU submitted comments on the Undue Preferences rule, finalized in December 2020, pointing out that the rule fell short of protecting family farmers and ranchers.

In response to the issuance of the guidance document, NFU President Rob Larew made the following statement:

“We welcome USDA’s newly released guidance, which demonstrates a further commitment to strong enforcement of the Packers and Stockyards Act. The guidance provides helpful clarifications on the scope of the 2020 Undue Preference final rule and is essential, especially when considering the rule’s shortcomings. It is also encouraging to see USDA reiterate its intention to issue three new proposed rules that could help further strengthen the Packers and Stockyards Act.

“Family farmers need fair and competitive markets, and the Packers and Stockyards Act remains a critical tool to achieve this. We appreciate USDA’s new guidance, which continues to demonstrate its commitment to fulfilling the vision laid out in President Biden’s ‘Executive Order on Promoting Competition in the American Economy.’”