USDA delays GIPSA rule implementation

The Department of Agriculture will delay implementation of a controversial rule in the meat and livestock sector and give the new administration more time to think it over.

According to a USDA release, the Grain Inspection, Packers and Stockyards Administration will delay implementation of the Farm Farmer Practices Rule – known in shorthand as the GIPSA rule for the agency charged with its governance – for 180 days. That would bump the effective date – originally April 22 – back to Oct. 19.

The rule – originally finalized by the Obama administration in December – was intended to level the playing field between contract growers and the companies with which they work. The December rollout was cheered by cheered by some but vigorously opposed by many of the nation’s meat and livestock groups.

While the rule is meant to address concerns of vertical integration in the sector, some producer groups say its regulations will only exacerbate the issue when companies opt to control the production on their own rather than contracting it out to a producer.

Source: Agri-Pulse