USA: New rule alters payment structure for contract broiler growers
The Poultry Grower Payment Systems and Capital Improvement Systems Rule modifies the payment structure for contract broiler growers by processors. Historically, processors have predominantly compensated broiler growers based on their performance rankings relative to other growers. The new regulation aims to standardize payments by establishing a base pay, thereby reducing variability. While processors are still permitted to incentivize high performers with bonuses, the regulation introduces a presumption that a processor is in violation of the Poultry Standards Act (PSA) if aggregate gross annual payments based on performance comparisons exceed 25% of total gross payments to growers within a complex on an annual calendar-year basis. Additionally, processors are prohibited from compensating underperformers below the established minimum pay.