Trimmed down GIPSA rule delivered to OMB

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USDA has submitted a significantly scaled-back version of the proposed Grain Inspection, Packers and Stockyards Administration rule to the Office of Management and Budget (OMB) for review. According to information released late last week, the final rule contains four out of five provisions required by the 2008 Farm Bill.

A USDA memo indicates provisions have been eliminated from the rule that would have banned packer-to-packer sales, restricted multiple packer buyer affiliations and required records to justify prices paid. USDA indicates other provisions from the proposed rule remain under consideration.

The 2008 Farm Bill requires USDA to define “undue preference” and “unfair practices.” These definitions, along with language related to competitive injury, remain a concern for the beef industry. KLA and NCBA will remain engaged on the issue to ensure beef producer interests are represented.

The final rule submitted to OMB addresses poultry industry issues such as the delivery of birds, additional capital investment criteria, breach of contract and arbitration. It also requires submission of sample swine and poultry contracts.

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