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GIPSA Expected to Publish Key Parts of Livestock and Poultry Marketing Rule in December 9 Federal Register

Friday, December 9, 2011

(American Meat Institute)

The Grain Inspection, Packers and Stockyards Administration (GIPSA) is expected to publish in the Federal Register today the long-awaited final rule implementing several components of 2008 Farm Bill related to livestock and poultry marketing and procurement. 

Significantly, the highly controversial sections included in the June 2010 proposed rule are not included.  Missing are the onerous provisions involving undue preferences and unfair practices, as well as the agency’s attempt to overturn well-established judicial precedent. 

The rule contains sections addressing the suspension of delivery of birds, additional capital investment criteria, a reasonable period of time to remedy a breach of contract and arbitration.  These topics were introduced in the June 2010 proposed rule and are largely the same in the final rule. 

The final rule becomes effective 60 days after publication in the Federal Register. 

In November, the Congress passed an appropriations bill that included language to prohibit USDA from continuing or finalizing work on certain provisions of the June 2010 proposed rule.  (See House, Senate Pass 2012 Agriculture Spending Bill, http://bit.ly/u8AeZS )

In response, AMI President J. Patrick Boyle said, “We are gratified that USDA has published a rule that more closely follows its Farm Bill mandate. Our concerns about the extremely costly and cumbersome June 2010 proposal are well-known and shared by many lawmakers from both sides of the aisle.  We remain concerned about both the  necessity and costs of the new final rule, however.”

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