New Swine Contracting Requirements Being Enforced

GIPSA is increasing audits of contracts to ensure compliance.

Published on: Feb 26, 2010

The 2008 Farm Bill established new requirements for swine contracts under the Packers and Stockyards Act. USDA's Grain Inspection, Packers and Stockyards Administration is working to ensure that all swine contractors are aware of and comply with the new requirements. These requirements went into effect on June 18, 2008, upon passage of the Farm Bill.

 

The new requirements allow swine growers to cancel growing or production contracts for up to three days after signing or any date specified in the contract or growing arrangement. Also, large capital investment requirements must be written into the contract and growers are permitted to opt out of arbitration provisions before entering a contract.

 

GIPSA is increasing its audits of swine production contracts to ensure their compliance with the Farm Bill requirements.  The agency is seeking civil penalties of up to $11,000 per violation when they find that swine contractors have not complied with the Farm Bill's requirements.