The U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) has proposed delaying the effective date of the Poultry Grower Payment Systems and Capital Improvement Systems final rule, which was finalized in the final days of Tom Vilsack's tenure as U.S. agriculture secretary under then-President Joe Biden.
When Vilsack announced the rule in January 2025, he said it would give chicken farmers better insight into companies' payment rates, bringing stability and fairness to what is commonly known as the tournament system. Vilsack said the rule was designed to provide farmers with key information on capital improvements that companies require farmers to make in order to keep or renew contracts, and give farmers stronger leverage when companies do not adhere to the rules.
The rule was to become effective July 1, 2026. However, USDA AMS, under the leadership of Agriculture Secretary Brooke Rollins, proposed to delay the effective date to Dec. 31, 2027. That decision was made "to allow time for further consideration of possible actions that may be taken regarding the disposition of the rule."
NCC applauds USDA decision
The decision has gained the support of the National Chicken Council (NCC). Harrison Kircher, NCC president, called the regulation "un-American" in a statement and said it "threatened to dismantle an efficient and successful industry model that has worked well for decades."
"The Poultry Grower Payment Systems and Capital Improvement Systems rule would effectively ban bonuses for the best chicken farmers. Eliminating this performance-based compensation system would pay all farmers the same, regardless of hard work, investments, housing conditions, or bird welfare practices. It would drive experienced farmers out of the industry and reduce efficiency and competition in rural markets," Kircher said.
"We applaud the administration's decision to revisit this regulation, strongly encourage its delay, and urge its full recission."
The proposed rule was also opposed by the Meat Institute, which on Jan. 28, 2025, called on the new presidential administration to repeal it.
National Farmers Union, Farm Bureau respond
The National Farmers Union (NFU) expressed opposition to the delay.
"NFU is disappointed that USDA is delaying the implementation of its rule to increase fairness in poultry contracting and payment systems. Growers have long raised concerns about the unfairness of tournament pricing and the amount and quality of information provided to them by poultry companies. The rule establishes guardrails on the tournament system, giving producers more certainty and transparency so they can operate their farm businesses successfully," said Rob Larew, NFU president.
"NFU is eager to see implementation of this long-overdue rule. Delaying it is a disservice to family farmers who deserve a fairer system."
Also disappointed was the American Farm Bureau Federation (AFBF).
“Farm Bureau has been a consistent voice advocating for America’s contract poultry growers. The Poultry Grower Payment Systems and Capital Improvement Systems final rule would address longstanding issues our growers have seen with tournament pay and requirements to make significant capital investments to their operations without any information or guarantee that they will recoup the cost of that investment," said AFBF President Zippy Duvall.
“The decision by the administration to tell contract poultry growers to take a back seat by delaying the effective date by a year and a half is disappointing. Growers have spoken on the need to level the playing field with more transparency surrounding how they are compensated and they believed progress was being made. AFBF looks forward to reminding the administration during the public comment period that farmers come first and poultry companies should not be prioritized over the men and women who work to put food on the table for all of America’s families.”
