"Today's vote deals a blow to the increasing threat of concentration in the livestock industry. It gives livestock growers equal footing when negotiating production contracts with packers and other livestock owners," Grassley said.
The amendment would close a loophole in the Packers and Stockyards Act to include livestock production contracts under its jurisdiction. It also provides livestock producers the ability to discuss terms of their contract with certain people such as their attorney, banker, landlord and government agencies charged with protecting a party to the contract.
"Our goal is to protect livestock growers from unfair and deceptive practices," Grassley said. " As production contracting becomes more common in the livestock industry, we want to afford cattle and hog farmers the same protections that poultry farmers have enjoyed for years. We also want to allow farmers to share their contracts with trusted advisors so that they can make informed decisions."
Under a basic production contract, a farmer would be required to provide buildings, equipment and labor to raise the animals, which are owned by the contractor. While the Packers and Stockyards Act already covers production contracting in the poultry industry, it does not protect those who raise livestock for packers or others.
The Senate passed the production contract amendment today by a vote of 82 to 14. The amendment was supported by the American Farm Bureau Federation, National Farmers' Union as well as dozens of other farm, consumer and religious groups.