Lawmakers Say New Processing Laws Will Cause "Significant Harm" to Farmers

Citing “significant harm” to American farmers, 73 members of Congress are urging the Biden administration to pursue legal action to stop line speeds from slowing down at hog processing plants.

“While the economic impact to these packers will be significant, it is the nation’s small and medium-sized hog farmers who will suffer the greatest harm from upstream impacts,” according to a June 24 letter to USDA Secretary Tom Vilsack and the U.S. Department of Justice. “It is imperative that USDA act quickly, and pursue all available options, to prevent this reduction in packing capacity which is set to take place at the end of June.”

Starting June 29, six processing plants will be forced to reduce line speeds because of a U.S. district court decision, which rolled back a provision of USDA’s New Swine Inspection System (NSIS) rule. This will inevitably cause reduced output from plants and reduced purchases of hogs, which will directly affect small and medium-sized hog farmers.

Research from Iowa State University indicates that this decision would reduce national packing capacity by 2.5%, creating a surplus of hogs on the market. Prices would then drop roughly by $23.33 per animal, causing a total economic loss on U.S. hog farmers to total around $80 million in 2021 alone.

“As the hog production cycle spans nearly a year, hogs set to enter this reduced-capacity market are already being raised. Farmers have little ability to alter their supply in the next year. Many farmers supplying these NSIS plants will need to find alternative destinations for their hogs. The resulting surplus and reduced demand in a concentrated geographic region will shift economic power to pork processing companies. The culmination of economic losses from the producers selling their operation. By failing to act, USDA will drive consolidation in the pork industry.”

While currently a 90-day court-ordered stay is in place, members of Congress are calling on the USDA and Department of Justice to defend the NSIS program.

“Failure to do so will leave our nation’s hog producers to bear the brunt of the consequences due to no fault of their own,” their letter concluded.

Five U.S. Representatives from Illinois signed the letter, including Mike Bost, R-Murphysboro; Darin LaHood, R-Dunlap; Mary Miller, R-Oakland; Rodney Davis, R-Taylorville; and Adam Kinzinger, R-Channahon.