Commerce, Justice, Science, and Related Agencies Appropriations Act, 2020

Floor Speech

Date: June 20, 2019
Location: Washington, DC

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Ms. KAPTUR. Madam Chair, I thank the gentleman from Georgia (Mr. Bishop), a superb chair of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee, and I rise to discuss an issue very important to America's livestock and poultry farmers, the Packers and Stockyards Act.

For decades, the Grain Inspection, Packers and Stockyards Administration, familiarly known as GIPSA, was a stand-alone agency within the U.S. Department of Agriculture.

Until recently, GIPSA was a parallel agency to the Agricultural Marketing Service itself. But under Secretary Sonny Perdue's reorganization of the Department of Agriculture and consolidation plan, GIPSA was moved deep within the Agricultural Marketing Service--some fear, buried.

Now, the Packers and Stockyards Division of the Fair Trade Practices Branch within the Agricultural Marketing Service administers the Packers and Stockyards Act.

Do you see the layers?

This consolidation will increase difficulty for farmers who seek relief from unfair and abusive practices common--unfortunately--in the livestock and poultry sectors.

The administration recently announced a rulemaking process to define criteria the Secretary will consider to determine violations of the Packers and Stockyards Act on whether an undue or unreasonable preference or advantage occurred.

I welcome this action.

These terms were never adequately defined or explained. However, I am very concerned this administration is utilizing delays and stalling tactics through this rulemaking process.

For several years, the previous administration's rulemaking process was blocked through appropriations riders. Year after year, I fought those riders.

Finally, Congress reacted to the public backlash over the riders and backed off efforts to block the rule. This enabled the last administration to move forward and to comply with the 2008 farm bill requirements. However, the rulemaking was not complete. With the turnover in administrations, Secretary Perdue quickly stopped all work on these rules and demoted the agency in charge of the effort.

It seems a positive step that the Secretary decided to advance new rules to clarify criteria used to enforce the undue and unreasonable preference or advantage authorities. However, given the administration's previous actions, I am quite concerned that this rulemaking will fall far short of addressing the worst abuses that America's livestock and poultry farmers experience.

There are gross examples of abusive contracting practices, particularly in the poultry sector. Companies greatly disadvantage certain growers at the expense of others. The thumb of justice surely seems obsolete. Protection against retaliation, pay transparency, and a right to a fair and just legal system are essential to protect our hardworking farmers from abuse.

Each of these concerns must be addressed in the rulemaking process. The alarming realities of the poultry industry and similar ones in the hog and beef industries highlight the imbalance within today's corporate meat production hierarchy. This must be addressed through USDA's planned Packers and Stockyards Act rulemaking process.

I hope the administration will better protect small farmers who work very hard every day to help feed our Nation.

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