Changes to the Packers and Stockyards Act
Proposed Regulatory Actions by USDA Under the Packers and Stockyards Act will Hurt Producers, Packers, and Consumers
In June 2021, USDA announced plans to propose rules to “strengthen enforcement” of the Packers and Stockyards Act (PSA). The expected proposed regulations will be problematic for several reasons:
- One of the proposals – and an expected forthcoming proposal – conflicts with legal precedent in no less than eight federal appellate circuits.
- The proposals will harm producers by limiting their options for marketing their animals.
- Packers will be vulnerable to frivolous lawsuits.
- Costs throughout the supply chain will be driven up and less innovative or specialized products will be produced, hurting consumers in the pocketbook and depriving them of some of the products they desire.
- By design, USDA’s proposed rules will discourage the use of alternative marketing arrangements (AMAs). Producers frequently choose to market their livestock through AMAs, which have improved efficiency, productivity, and risk management over the past two decades and allowed the sector to meet consumer expectations for increased beef quality and sustainably produced cattle and beef.
- Congress has repeatedly acted to block implementation of similar rules in the past.
