May 30, 2012
www.gfb.org
Vol. 30 No. 22
GFB URGES HOUSE SUBCOMMITTEE TO FULLY FUND NEW GIPSA RULES Citing the need for fairness to poultry growers in the areas of required capital investments, contract dispute response time and options for dispute resolution, Georgia Farm Bureau President Zippy Duvall wrote to Georgia Reps. Sanford Bishop (D-2nd District), Tom Graves (R-9th District) and Jack Kingston (R-1st District) asking for their support in making sure funding is available in the FY 2013 Agriculture Appropriations bill for the new USDA Grain Inspection, Packers & Stockyards Administration (GIPSA) rule that was finalized in February. “We believe these rules will prove helpful to poultry growers by balancing the negotiating position of growers regarding additional capital investments and provide growers more options to settle contract disputes,” Duvall wrote. Bishop, Graves and Kingston are all members of the House Appropriations Committee and the Agricultural Appropriations Subcommittee, which Kingston chairs. Duvall pointed out that the relationship between Georgia growers and poultry integrators is generally good, but noted that growers’ ability to negotiate is limited by their absolute reliance on production contracts. He called the congressmen’s attention to three specific sections in the new GIPSA rule. Section 201.216 outlines the criteria that may be used by the Secretary of Agriculture to determine whether growers are being unfairly or unreasonably required to make additional capital investments ($12,500 or more per structure) on their poultry or swine facilities. Duvall noted that growers, fearing loss of production contracts, are pressured into making additional capital investments, and he said growers should be afforded reasonable opportunity to recoup the cost. Another section, 201.218, outlines criteria the Agriculture Secretary can use to determine whether growers have been given a reasonable amount of time to remedy an alleged breach of a production contract. The third section, 201.219, gives growers options in the method of dispute resolution; they would be allowed the choice, prior to signing the contract, on whether they will accept binding arbitration should a contract dispute arise. Farm Bureau supports the rights of growers to participate in binding arbitration, but believes the growers should also have the right to choose other options. “We believe GIPSA achieved a fair balance with these rules in that they are equitable to both parties,” Duvall wrote. “Therefore, we request your support in moving forward with these new GIPSA rules.”