CONTRACT POULTRY GROWER ISSUES
                                                                               

                                              Release No. 0039.97
                                                               
                                    Johna Pierce (202) 720-4623
                                    Dana Stewart (202) 720-5091


USDA CONSIDERS REGULATIONS TO ADDRESS CONTRACT POULTRY GROWER ISSUES

     WASHINGTON, Feb. 10, 1997--As part of the Clinton Administration's
ongoing efforts to address the needs of family farmers, Agriculture
Secretary Dan Glickman today announced that USDA's Grain Inspection, Packers
and Stockyards Administration is issuing an Advance Notice of Proposed
Rulemaking to seek comment on concerns that contract poultry growers have
raised about their relationships with poultry companies.

     "Today's action is another in a series of departmental actions to
address issues raised by the USDA Advisory Committee on Agricultural
Concentration," said Glickman.  "The Department has heard repeated concerns
from poultry growers, who say that they are treated unfairly by the poultry
companies with whom they contract.  The comments we receive will enable us
to determine whether, and what type of, additional regulatory action may be
necessary to protect contract poultry growers in this era of increasing
concentration in agriculture."

     Specifically, GIPSA is seeking comments on (1) grower payments tied to
the performance of other growers; (2) the accuracy of feed weights, and feed
delivery and pickup procedures; and (3) procedures for weighing live birds.

     "In addition to the Concentration Committee's recommendations, the
rulemaking is the result of USDA's outreach to the poultry grower
community," said Michael V.  Dunn, USDA assistant secretary for marketing
and regulatory programs.  "In a number of public forums, GIPSA Administrator
Jim Baker and I listened to poultry grower complaints that their payments
are unfairly tied to performance of other growers.  Growers also question
the reliability and accuracy of the weight of feed that they are provided by
the processor, and the procedures used by processors in weighing the live
birds upon arrival at the processing plant.  Both of these issues influence
the payment growers receive from the processor."  

     USDA is seeking comments from all segments of the industry on
anticipated benefits and/or burdens, especially to smaller operations
involving less than $500,000 in poultry annually, that may result from the
rulemaking under consideration.

     This advance notice is published in the Feb. 10 Federal Register. 
Comments must be submitted on or before May 12, 1997, to: Harold Davis,
Acting Deputy Administrator, GIPSA, Stop 3641, 1400 Independence Avenue,
SW., Washington, D.C. 20250-3641; via FAX to 202-205-3941; or via electronic
mail to psp.gipsa@usda.gov.

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