NCC Statement on “Poultry Grower Payment Systems and Capital Improvement Systems” Rule

NCC today released the following statement in response to the finalization of the “Poultry Grower Payment Systems and Capital Improvement Systems” rule. Attributable to NCC President Harrison Kircher:

“The Biden administration, with just six days remaining, is racing to impose the last pieces of its anti-business regulatory agenda.

“This rule – which Congress never asked for – will lead to rigid, one-size-fits-all requirements on chicken growing contracts that would stifle innovation, lead to higher costs for consumers, decrease competition, and cost jobs by driving some of the best farmers out of the chicken business.

“The vast majority of chicken farmers in rural America are happy and prosper raising chickens in partnership with companies, and they don’t want the government meddling on their farms and telling them how they should run their businesses.”

NCC comments filed on the proposed rule can be found here.

Among the issues detailed in the comments, NCC was especially concerned about the following issues with the Proposed Rule:

  • The Proposed Rule exceeds Congress’s grant of authority in the PSA by prohibiting conduct without requiring a showing of injury to competition or even unfair or deceptive practices;
  • The Proposed Rule mischaracterizes dynamics and efficiencies in the current poultry growing industry, rendering it arbitrary and capricious;
  • As written, the Proposed Rule is too vague to be considered constitutionally valid;
  • The current Proposed Rule is so prescriptive as to unduly impinge on grower and integrator freedom to contract; and
  • AMS has greatly underestimated costs associated with the rule and would require an extended implementation period of at least two years.
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Address media inquiries to: Tom Super

Senior Vice President of Communications

[email protected] 202-443-4130