Biden set to order stricter rules for competition in ag

The Biden administration is moving forward with several regulations aimed at enhancing protections for farmers and ranchers against unfair practices by large meatpackers and other agribusinesses, White House press secretary Jen Psaki said on Tuesday.

Key context: The new rules will give farmers and ranchers more power to “fight back against abuses of power by giant agribusiness corporations,” Psaki said during a White House press briefing. That includes “right to repair” protections allowing producers to fix their own farm equipment and steps to strengthen the century-old Packers and Stockyards Act, which governs competition in the meat and poultry industry.

Farmers have long objected to manufacturers limiting their ability to repair their own tractors and other machinery or use independent repair shops that can be cheaper than service by the manufacturer.

The actions are linked to an executive order that President Joe Biden will soon issue to boost economic competition in major industries like agriculture.

Psaki pointed to several forthcoming regulations that the Agriculture Department has promised, including three new rules to bolster USDA’s enforcement of fair practices in meat production and an effort to rethink Made in America labeling requirements for meat products.

USDA said last month that the new rules will enhance its ability to intervene against unfair and deceptive practices by meat processors, allow farmers to more easily seek action under the Packers and Stockyards Act and tighten the rules for poultry grower tournament systems, in which contract farmers are paid more or less than their peers in the same area depending on how closely they meet standards set by buyers.

What’s next: Psaki said Biden’s forthcoming executive order will also direct USDA to “increase opportunities for farmers to access markets and receive a fair return,” including by developing standards and product labels to inform consumers about the treatment of farmworkers involved in production. USDA didn't immediately respond to a request for comment on more specifics.

The new regulations will have to go through a rulemaking process that can stretch on for months or potentially years.