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GIPSA Issues New Full Disclosure Rule

GIPSA Issues New Full Disclosure Rule
Goal of new rule is to improve transparency in poultry industry.

A final, rule amending regulations under the Packers and stockyards Act of 1921, has been published by USDA's Grain Inspection, Packers and Stockyards Administration. The new rule is intended to increase fairness and equity in the poultry industry by providing poultry growers with new information and improve transparency in poultry growing arrangements. The new final rule requires that a poultry grower be provided a true written copy of a poultry growing arrangement in a timely manner. The final rule becomes effective on Jan. 4, 2010.


The poultry growing arrangement must include information about any Performance Improvement Plans and provisions for written termination notices of the arrangement. The rule also allows growers to discuss the terms of poultry growing arrangements with designated individuals. Failure to disclose certain terms in a poultry growing arrangement constitutes an unfair, discriminatory or deceptive practice and violates a section of the Packers and Stockyards Act.


"We appreciate the leadership of Secretary Vilsack and the support of USDA for these new regulations that will ensure greater market fairness and transparency for America’s poultry producers," said American Farm Bureau Federation President Bob Stallman. "These rules are vital for helping poultry producers make sound business decisions that will protect their livelihoods."

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