WHAT HAPPENED: NCC today submitted formal comments to USDA’s Agricultural Marketing Service supporting the agency’s proposed 18-month delay of the Poultry Grower Payment Systems and Capital Improvement Systems rule, which is set to go into effect on July 1, 2026. AMS proposed the delay in March after reviewing the rule’s potential costs to the poultry industry and consumers.
WHY IT MATTERS: Beyond the millions of dollars in compliance costs the rule would impose, it would effectively ban bonuses for the best chicken farmers. Eliminating this performance-based compensation system would pay all farmers the same, regardless of hard work, investments, or husbandry practices. It would drive experienced farmers out of the industry and reduce efficiency and competition in rural markets. Even the Biden administration conceded it was “unable to quantify benefits” and acknowledged that any gains for some growers would come at the expense of higher-performing growers.
NCC’s TAKE: NCC strongly supports the proposed delay and urged AMS to finalize it as swiftly as possible to give the industry much-needed certainty and allow integrators to pause costly compliance preparations. “This regulation threatened to dismantle an efficient and successful industry model that has worked well for decades and helps keep chicken affordable for American consumers,” said NCC President Harrison Kircher. NCC also reiterated the legal and policy deficiencies it has raised throughout this rulemaking. NCC’s full comments can be found here.
WHAT OTHERS ARE SAYING: “We have it hard enough feeding America, don’t make it harder on the growers who actually take pride in their work by making it an ‘everyone gets a trophy’ situation.” – Grower comment on the proposed delay
WHAT’S NEXT: The public comment period closes today, and AMS will review the comments submitted and make a decision on whether to move forward with the delay. NCC urged AMS not to stop at a delay, but to use this period to fully rescind the rule. We will continue to engage with USDA and the administration to ensure the outcome protects farmers, preserves the efficiency of the broiler production system, and keeps chicken affordable for American consumers.
