Awesome New USDA Antitrust Rule on Meat Industry

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by: Jill Richardson
Fri Jun 18, 2010 at 21:01:35 PM PDT

The USDA has come out with a new proposed rule and - based on the reaction it has gotten thus far - it's a big fucking deal. In a good way. Here's how the AP described the new rule:

The rules would place the sharpest limits on meat companies since the Great Depression, drastically lowering the bar that farmers and ranchers must meet to sue companies whom they accuse of demanding unfairly low prices.

The rules would dictate how meatpackers buy cattle on the open market, and prohibit them from showing preference to big feedlots rather than buying from small producers.

They would also limit the control chicken companies have over the farmers who raise birds for them. The companies couldn't require farmers to take on debt to invest in chicken houses, for example, unless farmers were guaranteed to recoup 80 percent of the cost.

The law would also make it easier to file suits under the Depression-era Packers and Stockyards Act by stating that farmers don't need to prove industrywide anticompetitive behavior to file a lawsuit under the act.

Sen. Feingold, a longtime champion for fair competition in agriculture, has already come out praising this rule in a statement I've included below. South Dakota Senator Tim Johnson praised the rule as well, as did R-CALF USA. You can see the USDA's press release about this here and the actual rule itself here.

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