USDA Proposes to Delay Effective Date of Poultry Grower Payment Systems Final Rule

The agency said "significant estimated costs, policy, and legal issues" are associated with the final rule and that the Agricultural Marketing Service is seeking public comment on delaying its effective date to Dec. 31, 2027.

USDA Proposes to Delay Effective Date of Poultry Grower Payment Systems Final Rule

USDA

WASHINGTON, D.C. — The U.S. Department of Agriculture (USDA) announced that it took action to delay the effective date of the Poultry Grower Payment Systems and Capital Improvement Systems final rule from July 1, 2026, to Dec. 31, 2027.

USDA published the final rule under the Biden Administration on Jan. 16, 2025, which amended 9 CFR Part 201 of its regulations under the Packers and Stockyards Act. The final rule was promulgated in support of an executive order signed by former President Joe Biden, which was revoked by President Donald Trump via an executive order on Aug. 13, 2025.

This action is in alignment with Congressional direction, USDA said in a March 17 notice to industry. Given what the agency described as "significant estimated costs, policy, and legal issues" associated with the final rule, the Agricultural Marketing Service is seeking public comment on delaying the effective date of the final rule to Dec. 31, 2027. 

USDA said the final rule: (1) prohibits livestock poultry dealers (LPDs) from reducing a grower’s compensation based on the grower’s ranking under a poultry grower ranking system; (2) establishes a presumptive violation of the P&S Act by LPDs when aggregate gross annual payments based upon a grower’s ranking under a poultry grower ranking system exceeds a certain threshold; (3) holds LPDs to a duty of fair comparison when designing and operating their poultry grower ranking system and requires documentation of compliance with that duty; and (4) requires LPDs to provide certain disclosures when requesting or requiring that broiler growers make additional capital investments.

For more information, visit the Federal Register link.