Welcome to this week's USDA news update. The most significant headline from the department this week is the proposed new rule to clarify unfair practices in the livestock, meat, and poultry sectors. This rule, part of the Fair and Competitive Livestock and Poultry Markets initiative, aims to tackle longstanding challenges around interpretations of unfairness and competitive injury, supporting farmers, growers, and consumers by promoting fair competition and lowering food costs[1].
Secretary Vilsack announced this proposal during an event at the Center for American Progress, highlighting the Biden-Harris Administration's agenda to create more affordable and competitive agricultural markets. The proposed rule builds on USDA's extensive administrative case law and precedent established under other unfair practices laws, providing regulatory clarity and simplicity to end unfair conduct that harms the market or its participants.
This initiative is part of a broader effort by the USDA to enhance the enforcement of the Packers and Stockyards Act, including previous rulemaking and an enforcement partnership with the Department of Justice. The USDA has also made significant investments in independent meat and poultry processing capacity, domestic fertilizer production, and fairer markets for seeds and other agricultural inputs to support more robust and resilient supply chains.
In addition to this rule, the USDA has been actively working on various fronts to promote fair and competitive markets. This includes delivering on a multibillion-dollar investment plan to sustainably lower costs for consumers and boost choice for producers, directly incentivizing competition in food processing and fertilizer[5].
For instance, the USDA has dedicated $900 million for the Fertilizer Production Expansion Program, announcing 57 projects in 29 states totaling $251 million. These projects include innovative technologies to manufacture and process raw manure and fish waste into fertilizer and improve nutrient efficiency.
The USDA's 2024 budget request totals $209.7 billion, with significant investments in climate-smart agriculture practices, including $19.5 billion over five years to support conservation programs. This budget aims to create an equitable and climate-smart food and agriculture economy, investing more than $12 billion in 2024 to combat the climate crisis through all aspects of the food and agricultural systems[3].
These efforts are designed to strengthen local and regional food systems, create new market opportunities, add value for agricultural producers and consumers, and spur economic activity locally. Programs such as the Organic Transition Initiative, Healthy Meals Incentives, and Regional Food Business Centers are key to achieving these goals.
The impact of these developments on American citizens, businesses, and state and local governments is significant. By promoting fair competition and lowering food costs, the USDA is working to create a more resilient and equitable food system that benefits all Americans.
As USDA Senior Advisor for Fair and Competitive Markets Andy Green noted, "Farmers, ranchers, consumers, and smaller processors all depend upon the Packers & Stockyards Act to protect them from bad actors in the marketplace. It’s time to provide the regulatory clarity and simplicity needed to put an end to unfair conduct that harms the market or that harms market participants."
For more information on these developments and to stay updated on USDA news, visit usda.gov. Public input on the proposed rule is encouraged, and citizens can engage by submitting comments during the public comment period. Stay tuned for upcoming events and updates from the USDA. Thank you for listening.
