The deadline for submitting comments on the proposed Grain Inspection, Packers and Stockyards Administration regulations ends November 22, 2010. The proposed regulations allow livestock growers to sue livestock dealers and packers for unfair practices without having to show harm to competition. The proposed regulations also establish rules that:

  • Require a packer, swine contractor, or live poultry dealer to maintain written records that provide justification for differential pricing or any deviation from standard price or contract terms offered to poultry growers, swine production contract growers or livestock producers; 
  • Prohibits a packer or swine contractor from offering better price terms to producers who can provide larger volumes of livestock than to a group of producers who collectively can provide the same volume of livestock of equal quality and it cannot provide a legitimate justification for the disparity; 
  • Bans packer to packer sales; 
  • Prohibits livestock purchasers from buying for more than one packer; 
  • Requires packers, swine contractors, and live poultry dealers to provide GIPSA with sample copies of contracts within 10 business days of entering into the agreement with a grower or producer to increase transparency in the use of contracts and allow producers to make more informed business decisions;
  • Requires live poultry dealers to pay the same base pay to growers who are raising the same type and kind of poultry; and
  • Set rules on suspension of delivery of birds, capital investment criteria, capital investment requirements, reasonable period of time to remedy a breach of contract, and arbitration.