Date: 1987-10-27
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I thank my colleague for yielding time to me. and I rise in support of H.R. 3457. as amended. Mr. Speaker. I rise today in support of H.R. 3457. as amended. the Poultry Producers Financial Protection Act of 1987. This bill was considered by the Agriculture Committee on October 15 and was ordered favorably reported to the House for consideration today. H.R. 3457. as amended. would provide similar financial protections to U.S. poultry producers that fresh fruit and vegetable producers and red meat producers have enjoyed for some time. In addition. H.R. 3457. as amended. would clarify the jurisdiction of the Packer and Stockyards Administration and the Federal Trade Commission with respect to poultry and poultry products. Specifically. the Poultry Producers Financial Protection Act would require that prompt payment for poultry and for services to provide poultry be made to producers within certain time limits. This is necessary because. in some cases. growers have been forced to wait up to 3 months for payment from live poultry dealers. while their own payments continue to come due. H.R. 3457. as amended. would correct this inequity by requiring that all poultry growers operating under a growout contract be paid for their products by the 15th day following the week in which the poultry is slaughtered. For cash sales. payment would be required by the close of the next business day. H.R. 3457. as amended. would also establish a statutory trust to provide security for poultry producers in the event that a poultry dealer should go bankrupt. Since 1982. nearly 2.000 poultry growers have been affected by dealer bankruptcies that resulted in losses of nearly $15 million. Although some poultry producers have recouped their losses. the settlements have often taken months* and even years. The creation of a trust under the provisions of H.R. 3457. as amended. would place producers in the position of a secured creditor and protect their interests in the eveni of future poultry processor bankruptcies. The bill would also authorize the Packers and Stockyards Administration to enforce the prompt payment and trust provisions through U.S. District Courts. This would allow tho Packers and Stockyards Administration to continue investigations of matters that may disrupt live poultry transactions. similar to the Agencys current activities related to the red meat industry. Finally. H.R. 3457. as amended. would reaffirm the jurisdiction of the Packers and Stockyards Administration over live poultry. and clarify that the Federal Trade Commission has jurisdiction over the marketing of poultry products. I believe that this is a logical division of responsibilities and will serve to avoid duplicative regulations. The Poultry Producers Financial Protection Act was formulated with the cooperation of a broad range of agricultural groups who represent most of the Nations poultry producers. In addition. the bill. enjoys broad. congressional support. Mr. Speaker. this bill is notcontroversial. It provides long overdue financial protection to poultry producers and clarifies questions with regard to the reponsibilities of the two administrative agencies with jurisdiction over poultry production and poultry marketing. I urge my colleagues to support the immediate passage of H.R. 3457. as amended.