Biden administration proposes rule on payment for chicken farmers

By Leah Douglas (Reuters) - U.S. poultry companies may be forced to adjust how they pay their chicken producers, under a rule proposed by the U.S. Department of Agriculture on Monday. The rule is the third proposed by President Joe Biden's administration to increase competition in the meatpacking sector, where four companies control between 55% and 85% of the beef, pork and chicken markets. According to the rule, chicken farmers will no longer be able to have their base pay reduced based on the comparison of their flocks with those of their peers, and will receive more information to assess the risks associated with improvements requested by poultry companies. Generally, poultry farmers hired by companies like Tyson Foods and Pilgrim's Pride are paid on a system that ties their pay to performance -- such as chicken weight or mortality rate -- relative to other poultry farmers. In general, producers are also responsible for the costs of improvements to their chicken farms. ...