U.S. Sens. Pat Roberts (R-KS) and Joni Ernst (R-IA) raised concerns that an interim final rule from the U.S. Department of Agriculture (USDA) would limit the economic freedoms of farmers and ranchers.
The USDA Grain Inspection, Packers and Stockyards Administration (GIPSA) recently released an interim final rule and two proposed rules aimed at addressing unfair preferences and the so-called poultry tournament system, a performance-based incentive structure for poultry growers.
Roberts, the chairman of the Senate Agriculture, Nutrition and Forestry Committee, said he had strong concerns about the rule.
“The so-called GIPSA rule has been wrought with controversy since originally proposed in 2010 and will have a devastating impact on America’s farmers and ranchers and how they buy and sell cattle, hogs and poultry,” Roberts said.
The final interim rule would clarify that it is not necessary to demonstrate that an unfair practice harms an entire market in order to prove a violation of the Packers and Stockyards (P&S) Act of 1921.
Additionally, the proposed rules would clarify what conduct violates the P&S Act and establish criteria for GIPSA to use in determining whether any alleged actions constitute undue preference or advantage.
Roberts said the USDA’s finalized rules “will limit the economic freedom of America’s farmers and ranchers.”
Ernst called the rule a last-ditch effort by the Obama administration to insert the government into the livelihoods of farmers.
“This GIPSA rule would inflict high costs on livestock producers and make it more difficult for folks to obtain credit to begin livestock farming,” Ernst said, adding that the pork industry alone could face an additional $350 million in annual costs as a result of the rule.
“At a time when the realities on the ground are far different than the rosy picture painted by the USDA, the government needs to be giving our farmers certainty and stability to move upwards, instead of implementing costly rules that smother competition,” said Ernst, a member of the Senate Agriculture, Nutrition and Forestry Committee.
Ernst pressed USDA Secretary Tom Vilsack to provide a public comment period before issuing the final GIPSA rule and raised concerns about the impact of regulations during a hearing in September.
In November, House Majority Leader Kevin McCarthy (R-CA) and U.S. Rep. Michael Conaway (R-TX), the chairman of the House Agriculture Committee, cautioned the administration in a letter against finalizing pending rules or regulations in the administration’s last days.
“I will make it a priority to roll back these, and other midnight regulations from the Obama administration, as soon as Congress returns in January,” Conaway said.