The final USDA Agricultural Marketing Service rule clarifying the types of conduct prohibited by the Grain Inspection, Packers and Stockyards Act is meeting with favor from some producer groups and disappointment from others.
The rule sets forth four criteria for determining whether the conduct of packers, swine contractors or live poultry dealers represents an undue or unreasonable preference or advantage.
The four criteria include whether the preference or advantage:
⢠Cannot be justified on the basis of a cost savings related to dealing with different producers, sellers, or growers.
⢠Cannot be justified on the basis of meeting a competitorâs prices.