The rule also includes new disclosure requirements when the chicken companies demand that growers make capital investments, including upgrades to chicken barns.
The rule requires the companies to provide information about the purpose of the investment, construction schedules and an analysis of projected financial impacts.
The agency said in its statement that this will enhance the USDA’s ability to enforce existing prohibitions on unfair capital improvement practices. USDA senior adviser Andy Green said those requirements will help growers, and the agency, “identify and halt coercive investment demands before growers take on large debts.”
“Poultry growers deserve a fair shake and consumers deserve fair prices,” Green said in Monday’s statement.
The USDA finalized a rule in November requiring live poultry dealers and processing companies to share information about their agreements with their contracted poultry growers in order to increase transparency in the industry. That rule also includes specific requirements to disclose information about any performance-based ranking systems.
