Bill Details
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This bill would require the U.S. Department of Agriculture to update its rules so that some smaller meat packers can have a financial or business interest in livestock market agencies. The goal is to give certain small cattle, sheep, and hog packers more flexibility in how they do business, while still requiring public disclosure of any close relationship between a market agency and a packer. The bill also makes clear that USDA keeps its power to protect farmers and ranchers, support fair competition, and prevent conflicts of interest.
- USDA would have one year to change the current regulation that generally bars packers from having an interest in market agencies.
- The change would apply only to smaller packers: those below set slaughter limits for cattle, sheep, or hogs.
- If a market agency has an ownership stake in, finances, or helps run a packer that it sells livestock to, it must disclose that relationship on the sale account.
- The bill says USDA can still enforce other rules under the Packers and Stockyards Act to protect producers and keep the market fair.
Official Summaries
Expanding Local Meat Processing Act of 2025
This bill directs the Department of Agriculture to revise its regulations to allow certain packers to hold an ownership interest in, finance, or participate in the management or operation of a market agency selling livestock on a commission basis.
The bill applies to packers that have a cumulative slaughter capacity of (1) less than 2,000 animals per day or 700,000 animals per year with respect to cattle or sheep, and (2) less than 10,000 animals per day or 3 million animals per year with respect to hogs.
In addition, the bill includes a disclosure requirement for a market agency that has an ownership interest in, finances, or participates in the management or operation of a packer to which the agency sells consigned livestock. Specifically, the market agency must disclose on the account of sale (1) the name of the packer, and (2) the nature of the relationship between the market agency and the packer.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 782 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 782
To direct the Secretary of Agriculture to amend regulations to allow
for certain packers to have an interest in market agencies, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 27, 2025
Mr. Lujan (for himself and Ms. Ernst) introduced the following bill;
which was read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
_______________________________________________________________________
A BILL
To direct the Secretary of Agriculture to amend regulations to allow
for certain packers to have an interest in market agencies, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Expanding Local Meat Processing Act
of 2025''.
SEC. 2. ALLOWED INTEREST OF CERTAIN PACKERS IN MARKET AGENCIES.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Agriculture shall revise section 201.67
of title 9, Code of Federal Regulations (as in effect on the date of
enactment of this Act), to exempt the packers described in subsection
(b) from the prohibition described in that section.
(b) Packers Described.--A packer referred to in subsection (a) is a
packer that--
(1) with respect to cattle or sheep, has a cumulative
slaughter capacity of less than--
(A) 2,000 animals per day; or
(B) 700,000 animals per year; and
(2) with respect to hogs, has a cumulative slaughter
capacity of less than--
(A) 10,000 animals per day; or
(B) 3,000,000 animals per year.
(c) Required Disclosure.--In the case of a market agency that has
an ownership interest in, finances, or participates in the management
or operation of a packer to which the market agency sells consigned
livestock, the market agency shall disclose on the account of sale the
name of the packer and the nature of the relationship between the
market agency and the packer.
(d) Savings Clause.--Nothing in this section limits the authority
of the Secretary of Agriculture to adopt or enforce rules or
regulations under the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et
seq.), relating to the protection of producers, competition, market
integrity, or the prevention of conflicts of interest.
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