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RuleSignificant2025-005082025-01-16

Poultry Grower Payment Systems and Capital Improvement Systems

Agriculture Department, Agricultural Marketing Service

Abstract

This final rule by the United States Department of Agriculture's (USDA or the Department) Agricultural Marketing Service (AMS or the Agency) amends the Agency's regulations under the Packers and Stockyards Act, 1921 (P&S Act or Act). The Act protects fair trade, financial integrity, and competitive markets for poultry. The final rule prohibits certain payment practices under poultry grower ranking systems (commonly known as tournaments) in contract poultry production for broiler chickens, requires live poultry dealers (LPDs) to adopt policies and procedures for operating a fair ranking system for broiler growers, and requires LPDs to provide certain information to broiler growers when the LPD requests or requires the grower to make additional capital investments. These regulations will increase transparency and address deception and unfairness in broiler grower payments, tournament operations, and capital improvement systems.

Action & Dates

Action
Final rule.
Dates
This rule is effective July 1, 2026.
Effective Date
2026-07-01

CFR References

Topics

Confidential business informationReporting and recordkeeping requirementsStockyardsSurety bondsTrade practices

Document Excerpt

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Department of Agriculture Agricultural Marketing Service 9 CFR Part 201 [Doc. No. AMS-FTPP-22-0046] RIN 0581-AE18 AGENCY: Agricultural Marketing Service, U.S. Department of Agriculture. ACTION: Final rule. SUMMARY: This final rule by the United States Department of Agriculture's (USDA or the Department) Agricultural Marketing Service (AMS or the Agency) amends the Agency's regulations under the Packers and Stockyards Act, 1921 (P&S Act or Act). The Act protects fair trade, financial integrity, and competitive markets for poultry. The final rule prohibits certain payment practices under poultry grower ranking systems (commonly known as tournaments) in contract poultry production for broiler chickens, requires live poultry dealers (LPDs) to adopt policies and procedures for operating a fair ranking system for broiler growers, and requires LPDs to provide certain information to broiler growers when the LPD requests or requires the grower to make additional capital investments. These regulations will increase transparency and address deception and unfairness in broiler grower payments, tournament operations, and capital improvement systems. DATES: This rule is effective July 1, 2026. FOR FURTHER INFORMATION CONTACT: S. Brett Offutt, Chief Legal Officer/Policy Advisor, Packers and Stockyards Division, USDA AMS Fair Trade Practices Program, 1400 Independence Ave. SW, Washington, DC 20250; phone: (202) 690-4355; or email: s.brett.offutt@usda.gov . SUPPLEMENTARY INFORMATION: Tabl

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Related Documents

Other Federal Register documents from the same docket.

Full Document

Citation: 90 FR 5146