The Family Farm Rules Bulletin reports from the front lines on efforts to shape rules that promote strong agricultural communities. This issue of the Family Farm Rules Bulletin examines policies that address the growing use and abuse of contracts in animal agriculture. The use of production and marketing contracts has increased the bargaining power of processors at the expense of independent farmers. The trend towards contracting is quickly spreading from poultry to hogs and cattle, and new rules are under development to protect growers. We encourage submissions of relevant news.
Integrators maintain ownership of the chickens.
The farmer provides land, labor, buildings, and care until the chickens reach processing size. They are typically paid according to a formula that establishes a base price and bonus payments for higher quality birds. As a result, many contracts contain obscure language, payment plans, and confidentiality provisions that make it difficult to negotiate a fair deal. No laws prevent processors from retaliating against farmers who attempt to collectively organize. Under this arrangement, farmers retain ownership and control over the production process.